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. ...

Federal Government Repositions FMBN To Strengthen Affordable Housing Delivery In Nigeria The Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri, has commended President Buhari’s administration decision to recapitalize the Federal Mortgage Bank of Nigeria (FMBN) with additional 500 billion naira to make mortgage facilities accessible to all Nigerians, adding that the government's gesture would further reduce the housing deficit in the country. The Minister stated this during a courtesy visit to the Executive Governor of Nasarawa State in continuation of his inspection of on-going works on the National Housing Programme (NHP) in the North-Central geo-political zone. The Governor, Alhaji Tanko Almakura who was represented by the Deputy Governor of the state, Mr. Silas Ali Agara, received the Minister as the later thanked the state government for the collaborative effort through providing land for the NHP project in the state. Hon. Shehuri said that the federal government through the ministry was constructing 76 housing units in the state under the NHP as a fulfillment of Mr. President's Campaign promise to provide affordable housing delivery to the people. In his response, the Deputy Governor appreciated the federal government for initiating the programme, adding that this will have a multiplier effect on the economy of the nation by creating employment; enhancing expertise on professionals in the built industry and creating local content market. He assured the Minister that the state will continue to partner with the ministry to ensure the successful completion of the project. The Minister later proceeded to inspect the 76-unit Housing Estate comprising 4 units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments. He expressed satisfaction with the location and the level of works done so far. Also, the Minister inspected the construction work which is at various levels of completion at the 80-unit NHP project site in Makurdi, Benue State, where he met with contractors, artisans, food vendors, masons and labourers. The Federal Controller of Housing, Engr. Patrick Nziwu gave the breakdown as 4 units of one-bedroom, 48 units of two-bedroom and 24 units of three-bedroom apartments. In Jos, Plateau State capital, Hon. Shehuri also paid a courtesy call on the Executive Governor, Rt. Hon. Simon Bako Lalong, who was represented by the Deputy Governor, Prof. Sonny Gwanle Tyoden. The Minister condoled with the government and the people of Plateau State over the recent death of two of their illustrious sons, the Honourable Commissioner of Housing and Urban Development, Arc. Song Galadima and the husband of the former Deputy Governor of the state, Mrs. Paullen Tallen. While stating his mission in the state, the Minister expressed appreciation to the government for providing land for the construction of the housing programme, nothing that inspite of the present economic situation of the country the administration is resolute in fulfilling its campaign promises to Nigerians including that of housing.  The Minister appealed to the state government to expedite action on its promise to construct a feeder road to link the NHP project site to the major road. In his response, Prof. Tyoden expressed gratitude to the federal government through the ministry for "deeming it fit to make Plateau State one of the beneficiaries of the National Housing Programme".  He commended the government on its planned recapitalization of the Federal Mortgage Bank of Nigeria (FMBN) to the tune of N500 billion, nothing that this would encourage home ownership and affordability. He assured the Minister that action would be taken on the construction of the feeder road to link the NHP project site location. ...

FG Expresses Commitment To Self Sustaining Power Sector Tarrif, To Enforce Discos’ Metering Commitments *  As Fashola chairs 14th Power Sector Operators’ Meeting in Oshogbo *  Payment of MDA debts starts with initial tranche of N374,551,000 to Abuja DisCo for outstanding debts at the Federal Secretariat, Abuja. *  Aregbesola acknowledges gradual improvement of electricity supply especially in Osun State; underscores the importance of the Power Sector Recovery Plan *  NERC will issue red cards, yellow cards and where it is necessary award penalties-Minister Power Sector Operators rose from their 14th Monthly Meeting with the Minister of Power Works and Housing in Osogbo, Osun State with the Federal Government expressing its commitment to tariffs that would ensure a self-sustaining power sector and supporting the Nigerian Electricity Regulatory Commission in applying sanctions where appropriate to ensure operators comply with the rules. In a Communiqué after the Meeting hosted by the Transmission Company of Nigeria (TCN) at the National Control Centre, Osogbo, the Vice Chairman, Nigerian Electricity Regulatory Commission, who made the commitment also said the focus of the recently reconstituted commission would include enforcing DisCos’ metering commitments, prepaid meters for MDAs, centralised management of market revenues collected from all customers, appropriate capitalisation of DisCos, and prudent procurement. According to the Communiqué, the Managing Director, Transmission Company of Nigeria, also restated the company’s commitment to expand transmission infrastructure and improve its operation and performance within the Power Sector value chain while encouraging the industry to take necessary steps to address the problem of unutilized load (previously described as load rejection) currently causing high system frequency on the National Grid. Emphasizing that the purpose of the Nigerian Electricity Supply Industry (NESI) was to ensure that citizens could access power safely, reliably, and consistently, the Minister, who chaired the Meeting, said the Agency must remain committed to ensuring the achievement of these objectives tasking NERC with ensuring fair play for consumers and providers within the sector among other objectives. The Minister also reiterated the Federal Government’s commitment to its responsibilities in the sector, through policies such as the Power Sector Payment Assurance Guarantee to ensure liquidity stability in the sector so that generating companies are paid for their services stating also that all stakeholders should remain committed to their various roles in supplying and distributing power to ensure that the power sector functioned effectively. The Governor of the State of Osun, Ogbeni Rauf Aregbesola, who was also in attendance acknowledged the gradual improvement of electricity supply especially in Osun State which hosts the National Control Centre even as he also underscored the importance of the Power Sector Recovery Plan as critical to ensuring accountability for losses, improving customer service, customer accessibility, safety, and performance in the sector. Urging electricity customers to play their role in the success of the industry, through the timely payment of bills, ending the vandalism of power assets, and the assault of electricity workers who seek to install or read meters, the Minister announced that Federal Government had started fulfilling its promise to pay verified debts by the payment of an initial tranche of N374,551,000 to Abuja Electricity Distribution Company (AEDC) for outstanding MDA debts at the Federal Secretariat, Abuja. The meeting received confirmation from Independent System Operator (ISO) that the intention of Paras Energy (a private generating company) to sell 60MW internationally would not jeopardize the power purchased by the Nigerian Bulk Electricity Trader (NBET) for use in the domestic market while NDPHC provided updates on host community connections in Egbema, and announced significant progress on Oronta and Omotosho which were previously limited by funding challenges. While progress was also announced on reconnecting Magboro community, subject to safety checks by the Nigerian Electricity Management Services Agency (NEMSA). Olorunsogo Power also stated that funding of road repairs in the host community has also been approved while TCN presented a report on the problem of unutilized load on the grid and committed to working closely with the DisCos to eliminate the occurrence of the problem. While TCN announced a 9 per cent improvement in energy delivered to DisCos from the Transmission Company of Nigeria for the month of February, as compared to January, Ikeja and Yola DisCos showed improved remittance to the Market Operator for services rendered in the month of February even as TCN also encouraged sector participants to fulfil all their obligations to ensure the success of the Power Sector Recovery Plan. Acknowledging incidents of insider malpractice and the negative impact on customers following a NEMSA report on its investigation of various customer complaints especially complaints related to the integrity of meters, the Meeting agreed on the need for vigilance to eliminate such cases. TCN, which presented a brief on ongoing works to address specific challenges and limitations around the country, also acknowledged the delay in replacing the damaged 60MVA transformer at Katampe which caused prolonged load shedding and poor service in parts of Maitama, Wuse II and Jabi in Abuja while NERC reported on stakeholder performance for 2016. DisCos were ranked based on metering progress, NBET and Market Operator remittance, amongst other indicators. Eko DisCo was ranked as the best performing Distribution Company, while Kaduna DisCo was ranked as the lowest. Okpai (Thermal Plant) and Jebba (Hydro Plants) were ranked as the best performing in their respective categories, based on indicators such as percentage availability and reporting compliance. Earlier in his opening remarks, Fashola had urged operators in the industry to play their roles, honestly, accountably and efficiently as Government was now determined to enforce the rules in the sector saying with the reconstitution of the Board of the Nigerian Electricity Regulatory Commission (NERC), Government was determined to make the change required to reposition the sector for effective supply of electricity to Nigerian consumers. Noting that the role of government, as represented by his Ministry, was now that of Policy formulation, Oversight functions and enablement for all of the operators to play their parts, the Minister added, “The regulator in this business is NERC; that is the official referee of the interactions. They will issue red cards, yellow cards and where it is necessary, award penalties”. He told the Operators and Stakeholders, “I hope all of you the players in the industry will get ready for what is a change of behaviour, a change of attitude”, adding that after 60 years or more of a difficult Electricity Sector experience nobody should presume that it would be a walk in the park to make the change. Reiterating the determination of Government to make the difference in spite of the past experiences, Fashola declared, “For Mr President, this Government is determined to make that change and it requires everybody to play their roles honestly, accountably and efficiently”, adding that in the last three weeks, especially since February, government was now “stepping up valiantly to its responsibilities and confronting the challenges in the sector”. “Some of the things that happened since February, if we should and I will recap, is that the Regulatory Commission has been substantially reconstituted and they have briefed us now what they are doing. In terms of policy, Government has taken action to approve a Payment Assurance Guarantee that addresses the liquidity challenges in the sector”, the Minister said. He, however, noted with regrets that “some Association of DisCos” was reportedly saying that N701Billion was not enough to provide for them pointing out that Government did not contract with an association but with 11 individual Distribution companies. Acknowledging the right of the DisCos to associate as a constitutional guarantee, the Minister, however, reiterated, “We don’t have contract with an association and the regulator knows what to do in terms of the exercise of its rights and we leave them to take their decisions”. He said what Government wanted to achieve was not to give anybody money but to guarantee to those who did their work diligently, honestly and performed their contracts “that their entitlements are receivable to be secured and paid” adding that it would enable others across the value chain to also perform their roles. On the payment of debts owed the DisCos by government Ministries, Departments and Agencies, Fashola said lately Government was not only verifying DisCo debts as reported consistently in the Meeting, but recently paid about N374,551,000 debt owed by the Federal Secretariat in Abuja to the Abuja DisCo as proof of its commitment to paying debts that it could verify. Assuring that government would continue to pay in that vein, the Minister, however, expressed regrets that some DisCos have still failed to furnish the government with all the information needed adding, “I have reiterated that we will not pay any debt that we cannot verify”. The Minister also told the Operators that the Federal Executive Council has approved an Energy Recovery Programme, which, according to him, “cuts across the issues of gas, transmission, metering, loss reduction, contract enforcement, customer service and consumer protection to mention a few” adding, “What this means again is that Government is determined to enforce the rules including on itself. Government is not above the law”. He declared, “The daily losses in the Power Sector are avoidable and they must be avoided. Every loss must be accounted for and paid for whether it be by cash or by sanction or by the combination of both and more. This is a business and I have had cause to say that in any business that is properly run, when losses begin to occur those who run those businesses pay for them either by losing their jobs, or making refunds or by resigning”, adding, “We are heading in that direction”. “Whether it be in government, whether it be in the Private Sector; we will track every loss and we will apportion it at every door and we expect that those losses will be accounted for. So this is the time for everyone to sit up, to close up and be ready to assume his own role or ship out of the sector”. Fashola said because a large part of the Power Sector was now in private hands it was important to emphasize that the burden of compliance would tilt heavier to the side of the Private Sector adding, however, that with the NERC Commissioners fully on board and demonstrating that they knew why Mr President appointed them to deliver the mandate given to them by law, there was high expectation that both his Ministry and the Operators’ businesses would succeed. “It is good to now have the Commissioners of the Nigerian Electricity Regulatory Commission fully on Board and demonstrably showing that they know why Mr President appointed them and expectedly they will commit to delivering on the mandate given to them by law and by the appointment”, he said adding that if the Commission succeeds his Ministry would succeed while the Operators’ Businesses would do well and Nigerians would have better access to electricity. ...