- FG approves counterpart funding for Siemens Deal
The Federal Government has approved the payment of €15.21 million and ₦1.708 billion as counterpart funding for the Presidential Power Initiative (PPI). The PPI, known as the Siemens Deal, is an FG initiative seeking to upgrade existing power sector infrastructure in collaboration with the German government.
The Minister of Finance, Budget and Planning, Zainab Ahmed, made the announcement following the Federal Executive Council (FEC) yesterday.
“The first memo that we presented to council was seeking Council’s approval for the engagement of Africa Finance Corporation (AFC) as transaction advisors with third-party consultants for the implementation of the Presidential Power Initiative (phase one),” Ahmed said.
“The second component is the engagement of third party consultants, and this includes local as well as international legal advisory firms, environmental and social impact assessment consultants, security consultants, insurance advisors, as well as tax and model auditor,” she added.
“These parties are collectively engaged in the sum of $1,116,312.45 US dollars. The objective of the PPI project is to modernize and upgrade power transmission and distribution infrastructure in Nigeria.” Ahmed continued.
The minister further explained that €62 million would be used to procure mobile equipment and transformers for the transmission of power across the country.
“The total cost of the procurement is in the sum of €62,949,447 with a delivery period of 12 to 18 months, dependent on how we’re able to push because this equipment will be manufactured specifically for us,” Ahmed noted.