World Bank Group Support for Nigeria’s Power Sector Recovery Program Washington, DC, April 22, 2017 – The World Bank Group and the Federal Government of Nigeria today had a high level consultation meeting to discuss World Bank Group support for the Government’s Power Sector Recovery Program, which was approved by the Federal Executive Council of Nigeria on March 22, 2017. The current status of the power sector characterized by poor service and lack of liquidity is a source of macro-economic imbalances and a binding constraint to the revival of growth for the country. The Power Sector Recovery Program focuses on supporting implementation of power sector reform, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private sector investment. “The approval of the Power Sector Recovery Program by the Federal Executive Council demonstrates that the Federal Government is committed to the sustainable development of the power sector.   The implementation of the Program is critical to achieving the objectives of the Government’s Economic Growth and Recovery Plan,” said H.E. Babatunde Fashola, SAN, Minister for Power, Works and Housing. “There is need for well-designed derisking in order to attract private investors to the sector,” said Mrs. Kemi Adeosun, Minister of Finance.   “All the agencies of Government will work in concert to ensure implementation of the Power Sector Recovery Program.” “The legislative arm of the Nigerian government is fully committed to the successful implementation of the Power Sector Recovery Program,” said Senator Enyinnaya Abaribe, Chairman, Senate Committee on Power, Steel and Metallurgy. “We will make sure our oversight functions focus on the completion of projects and initiatives that support the effectiveness of the Power Sector Recovery Program” said Honourable Dan Asuquo, Chairman, House of Representatives Committee on Power. The World Bank Group congratulated the Government on its commitment to the Recovery Program, stressing the critical importance of the power sector for Nigeria’s development and for restoring macroeconomic resilience and growth.   The meeting discussed the action plan set out in the Program, stressing the need for strong interagency coordination to ensure that it attains its aims. "Controlling the cost of electricity supply is a critical element of the Recovery Program that will require close attention to prioritizing investments based on least cost power development investment planning principles,” said Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries. “A turnaround of the power sector will require the expertise and financing of the private sector,” said Bernard Sheahan, Global Director for Infrastructure and Natural Resources at the International Finance Corporation.  “This would require continuous improvement in the investment climate in Nigeria and strong communications among stakeholders of the sector reform plan during its implementation.” “A full range of instruments will be deployed to help the Government mobilize investments directly from the private sector and through private sector guarantees,” said Sarvesh Suri, Director of Operations at the Multilateral Investment Guarantee Agency. The World Bank Group reaffirmed its strong partnership with the Government of Nigeria in addressing the challenges in power sector, that include bringing its experience in developing financing solutions and attracting private sector capital in Nigeria. The meeting resulted in agreement on the next steps in developing the World Bank Group’s support, recognizing the need for concerted efforts to accelerate its preparation. “The World Bank Group is committed to supporting the implementation of the Government’s Power Sector Recovery Program to re-establish financial sustainability in the power sector,” said Rachid Benmessaoud, World Bank Country Director for Nigeria. Contacts: In Abuja (Federal Government of Nigeria): Permanent Secretary, Ministry for Power, Works and Housing: Louis Edozien, louis.edozien@power.gov.ng In Abuja (The World Bank Group): Olufunke Olufon, 08149921055,  oolufon@worldbank.org In Washington (The World Bank Group): Ekaterina Svirina, (202) 458-1042,  esvirina@worldbank.org For more information on the World Bank’s programs in Nigeria, visit: http://www.worldbank.org/en/country/nigeria Join us on: https://www.facebook.com/worldbank Follow us on Twitter: https://twitter.com/WorldBankAfrica Find us on YouTube: http://www.worldbank.org/africa/youtube Listen to us on Soundcloud: https://soundcloud.com/worldbank/sets/world-bank-africa ...

Fashola Urges Professional Builders To Develop Effective Strategies And Framework To Ensure Project Quality The Hon. Minister of Power, Works and Housing, Babatunde Fashola has urged members of the Council of Registered Builders of Nigeria (CORBON) to develop for implementation, effective strategies, framework and benchmarks for ensuring the proper application of the project quality management plan of building projects in Nigeria. He said this will guarantee the attainment of quality in project delivery as well as regulate and control the practice of the building profession. The Minister said this today at the 15th Induction / Investiture ceremony of New Builders held in Abuja. The Minister who was represented by the Director, Public Building and Housing Department in the Ministry, Arc. Sani Gidado, said that the present administration was determined to ensure the enactment of enabling legislation on the National Building Code which includes Project Quality Management Plan in contract documentation for full implementation. Fashola identified cases of building failures and collapse in Nigeria as a clear manifestation of failings of the designs and the construction processes and stated that the onus lies with the critical stakeholders to undertake a conscientious overhaul of the present system to curb the menace. He commended the Council for its contributions in the quest to achieve sanity in the built industry especially on its consistency in contributions and recommendations to the National Building Code and the National Council on Housing. In his welcome address, Chairman of CORBON, Bldr.Prof. Bala Kabir said the Council has the primary responsibility of establishing and implementing standards of education and practice for Building Technology provided in the Builders Registration Act. He said some of the specific functions in the Act include: to regulate the activities of Builders through registration and licensure; define the scope of practice of building technology; set standards for practice and continuing education of Builders and discipline registered and license holders. He said that the induction is another effort to disenfranchise quacks from carrying out their illegal activities in the industry and admonished the inductees to be building production managers who will ensure good quality project delivery at all times. Guest speaker at the occasion, Prof Akin Akindoyeni also urged the Builders to maintain standards and quality and also go for expertise in the profession, adding that it is incumbent on the inductees and others to keep abreast of modern technology in the industry. A total of 106 members were inducted into the Council.   ...

Deployment Of Solar Energy Attains Milestone As FG Signs PCOA Agreement With Two Developers *   Agreement is key aspect of the finalization of the PPA signed last year between Federal Government and 14 Solar Power developers *  Fashola presides at event, reiterates importance of Nigerians investing in the nations economy *  Assures Nigerians that the aspirations to see more renewable energy are being met with results  imminent The Minister of Power Works and Housing, Mr Babatunde Fashola SAN, Tuesday in Abuja presided over the signing of the Put/Call Option Agreements (PCOA) with two Solar Power developers. – Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited. The Agreement, which was co-ordinated by the Nigerian Bulk Electricity Trading Plc (NBET), is a key aspect of the finalization of the Power Purchase Agreement which the Federal Government signed with 14 Solar Power developers in July/August last year to deal with any premature termination of the PPA. Afrinegia Nigeria Limited will deliver 50MW while CT Cosmos will deliver 70MW to the Grid on completion. Making his remarks at the event, the Minister who described the signing of the PCOA as a milestone, again stressed the importance of Nigerians investing locally as a way of supporting the ongoing efforts by Government in rebuilding the country. He noted that experience had shown that whenever the investment weather got stormy and cloudy in the country, it was the persistence, perseverance and indomitable spirit of the indigenous investors that would support Government adding that the moving investors would simply look for calmer investment weather. According to the Minister, “Sometimes when the weather gets stormy and cloudy, like it has been a few months back, some of the first people to go are the moving investors as they look for calmer weather. It is the persistence and perseverance and the indomitable spirit of Nigerians who have invested in Nigeria that will help to support the efforts that Mr President and the Vice President and the Nigerian Government are making to rebuild the Nigeria that we want to see”. Thanking the two local investors for their confidence in the nation’s economy, Fashola said the Solar development initiative was in line with the Federal Government’s Economic Recovery and Growth Programme pointing out that one of the five priority actions of the 60 interventions in the Plan was Energy Supply which was the responsibility of his Ministry. The Minister said the initiative also sat well with the objective of his Ministry to get Incremental Power wherever it was available, safe and environmental friendly adding that it also agreed appropriately with the Global trend in renewables and Nigeria’s commitment as a signatory to the Agreement to seek more sources of renewable Energy and deliver energy “in the way that it sustains the Planet and human life for a more enduring period”. “It sits very well with our Ministry’s Energy Mix to deliver 30 per cent of our total energy capacity through renewables by 2030”, he said adding, “So it has ticked all of the right boxes; what remains now is to tick the final box to get power to peoples’ homes”. Recalling a similar ceremony when Government signed the Power Purchase Agreements sometime last year, Fashola, who noted that he made it clear that it was the starting of a journey that could take several months or a couple of years, declared, “We have reached a major milestone in that journey today”. The Minister, who again thanked the investors and wished them success, assured Nigerians that all of the aspirations to see more renewable energy were being met “with Policy Initiatives, action backed movements”, adding, “The journey has started and the results are imminent”. He noted that Solar represented only one of the sources of renewable energy that government was currently pursuing adding that there were also hydros and Government was similarly procuring six more hydro dams as well as working in Dadin Kowa, Zungeru and Gurara. According to Fashola, “We also are very near close to concluding the signing of the contract to commence the biggest hydro plant in Nigeria-the Mambila. So the road to renewables here is really exciting and I am looking forward to seeing what the road will look like in a couple of months”. The Minister, who expressed the hope that “sooner rather than later” Nigerians would begin to feel the impact of the companies with energy supply especially to communities that were yet to experience and benefit from access to energy, also on behalf of the government and people of Nigeria, thanked the companies for their investment belief and investment commitment. Earlier in his remarks, the Permanent Secretary (Power), Mr. Louis Edozien, expressed joy at the signing ceremony which he said marked a very important day in the Power Sector describing the event as the last bus stop in the process of getting a grid solar power. According to the Permanent Secretary, the event represented the last bus stop as the Ministry had, in the last one and a half years surmounted several hurdles leading to the day’s event including getting the PPA signed and getting the projects to financial closure adding that the last bus stop to the Financial closure was the signing of the Put/Call Option Agreement (PCOA)which was the day’s event.   Edozien, who said he would be happy to work with the two indigenous companies declared, “Here we are; this is the last bus stop and we hope and expect that after this, the next stop in the journey will be power on the grid”. In her remarks, the Managing Director/CEO of NBET, Dr. Marilyn Amobi, also described the day as a very important one for both NBET and the entire Power Sector expressing delight that the process was now at a very high level of conclusion leading to the actual execution of the contract. Also present at the signing ceremony, which, according to NBET “marks the end of the development stage of Nigeria’s quest to deploy grid solar to the nation’s energy mix” were the Chairman of Afrinegia, Mr Bestman Uwadia who signed on behalf of Afrinegia and his CT Cosmos counterpart, Mr Phillip Chukwueke, who signed on behalf of his organisation. The event was also witnessed by the companies’ international lenders group led by European International Bank and AfDB and also their Engineering Procurement Contractors, AEE Power of Spain as well as their International legal advisory team led by Jones Day Solicitors. While Afrinegia has its solar project at Onyi Kokona LGA of Nassarawa State, CT Cosmos is developing its own project at Panyam, Mangu LGA, Plateau State. ...