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FG in fresh power deal with Siemens, others

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FG in fresh power deal with Siemens, others

By Ihuoma Chiedozie, Abuja

The Federal Government on Tuesday signed an energy partnership with Germany as part of its intervention measures in the power sector.

One of the companies to benefit from the partnership deal is the conroversial German company, Siemens. The firm was suspended and its supply contract cancelled in December 2007 by the Federal Government for allegedly offering $14m bribe to Nigerian officials.

Four other German firms - EVONIK, ArGe, E.ON and KfW Ipex Bank - were named alongside Siemens as lead engineers for various power projects in different parts of Nigeria.

The projects- rehabilitation and implementation to supply water; problem-solving assistance; and capacity building - are expected to inject about 6,500 megawatts of electricity into the national grid between 2008 and 2020.

Under the rehabilitation and implementation to supply water category, Siemens will serve as the lead engineer in the project to provide six units of Small Bonny Light Crude Oil/HFO turbines in Kaduna State by 2010.

The company is also the lead engineer in the project to add three new turbines and waste recovery boilers/steam turbines at Geregu by 2011 and 2014 respectively.

ArGe is to serve as the lead engineer in majority of the projects, including audit and expansion planning at Kainji by 2013.

Other projects to be led by ArGe include feasibility study for small hydro-power and engineering projects at Obudu by 2011; and feasibility study, planning and implementation for a waste to power project in Kano.

It will aslo serve as the engineer for the preparation and tendering/investment and construction for photovoltaic power supply in rural areas in Sokoto by 2010.

Besides, ArGe will conduct a feasibility study for a pilot wind-power plant in Katsina by 2010 as well as solar thermal power in Maiduguri, Borno State, by 2012.

In the same vein, Evonik is the lead engineer for a grid connection and extension project at Ikot Abasi. It will also audit and rehabilitate thermal power stations at Egbin, Sapele, Delta and Afam.

Evonik is also the lead engineer for a coal-fired power station in Gombe State by 2015.

Another firm, E.ON will lead the construction of an LNG plant with IPP and gas gathering for domestic use in Akwa-Ibom State by 2014.

Projects under the problem solving category, which are to be led by ArGe and KfW Ipex Bank, include audit of sub-stations, grid bottlenecks and requirements of automatic grid operation in all power stations across the nation between 2008 and 2014.

Also included in this category are projects for the introduction of power communication networks for the Power Holding Company of Nigeria and advisory mandates on IPP workshops.

In the capacity building category, EVONIK is to serve as the project lead for the implementation of dual vocational training centres and workshops for power plant staff at Geregu, Port Harcourt and Abuja.

The German Ambassador to Nigeria, Mr. Joachim Schmilliue and the Nigerian Ambassador to Germany, Alhaji Abdul Rindap, signed the Memorandum of Understanding for the partnership on behalf of the two countries.

President Umaru Yar'Adua, who spoke later, explained that the "original objective of the partnership" was to "address Nigeria's energy challenge."

Yar'Adua added that the partnership also signalled his administration's "unwavering commitment to evolving those requisite, deliberate, structured policy choices that will enable us rapidly rebuild, upgrade, and expand our critical infrastructure."

The President, who also assured of government's readiness to immediately implement the MOU, canvassed a joint secretariat to ensure the realisation of the objective of the partnership.

He said, "I assure you that the Nigerian Government will ensure the speedy implementation of the agreed terms of the MOU.

"I expect that our Energy Council would, in collaboration with our partners, establish a joint secretariat to work out the modalities for operationalising the partnership"

Yar'Adua expressed appreciation at the role played by the German Chancellor, Ms. Angela Merkel, towards the realisation of the partnership.

"From the time I discussed the issue of the partnership with her in June 2007 up till this moment, she has remained steadfast in the pursuit of its actualisation. Nigeria is grateful for this productive partnership," he said.

The Minister of Information and Communications, Mr. John Odey, had while announcing the suspension of Siemens in November 2007, explained that it would be improper to have new dealings with the firm while the government was investigating the bribery allegation against the firm.

In November 21, 2007, Siemens AG apologised to the Federal Government for the embarrssment the bribery scandal caused the country.

It said in a letter by a member of its management board, Mr. Rudi Lamprecht, that it was prepared to cooperate with the Nigerian authorities in its investigations into the scandal.

Some officials of the firm in Germany had since then been brought to book over the scam, but none of the Nigerian officials named in the case has been convicted.

Among the Nigerians are - Alhaji Mohammed Bello; the late Haruna Elewi; Maj.-Gen. Tajudeen Olanrewaju, and Chief Cornelius Adebayo.

Bello, Olanrewaju and Aebayo denied involvement in the scam.

Senator Jubril Aminu, who is one of the other Nigerians mentioned in the scandal, also denied involvement.

Regions : Africa

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