(http://dl.dropbox.com/u/2618253/ForumPhotos/Labaran%20Maku%20-%20Communication%20Minister.jpg)The Federal Executive Council (FEC) yesterday approved various contracts in the power sector.
The Minister of Information and Communications, Mr. Labaran Maku, told journalists after the council meeting that the approval was premised on the need to increase power generation capacity in the sector.
Towards this, the council ratified an approval for the variation of some contracts presented by the Minister of State for Power, Nuhu Somo Wya.
According to Maku, the council ratified the National Independent Power Project's (NIPP) Board of Directors' approval for variation of the contract awarded for the construction of the 225 mega watts Gbarain Power Plant in favour of Messrs Rockson Engineering Ltd, in the sum of $138, 675,122.20 to $220, 101,976.79 payable at the prevailing exchange rate at the time of payment.
The variation, he explained, was necessary as a result of request made to the contractor to modify the design of the plant to accommodate four additional turbine units and combined cycle operation.
Also, the council ratified the modification of the design of the construction of 338 megawatts Egbema Power Plant under the Niger Delta Power Holding Company Ltd, which was awarded in 2006. The request for modification was informed by the need to accommodate additional three gas turbines and combined cycle operation to raise expected generation capacity to 675mw.
Consequently, the council ratified the review of the contract from $128, 366,751.74 to $183, 021,115.37, in favour of Messrs Rockson Engineering Ltd/Rockson International Group at the prevailing exchange rate at the time of payment.
Finally on power project, Maku said that council ratified the President's anticipatory approval for the provision of consultancy services for the detailed Engineering Design and Project Management of the proposed 2,600mw Mambilla Hydro Electric power project in favour of Messrs Coyne et Bellier (in association with WADSCO & De Crown) in the sum of $37, 220,067.72 with 87 months as completion period.
The Minister of State for Power, Mr Nuhu Somo Wya said the Mambilla power project would cost about $4 billion and was expected to generate 2,600 mega watts of electricity on completion by 2018.
And, in line with the Federal Government's bid to privatize the power sector, Wya had said on Tuesday that the Olorunshogo Power Plant in Ogun State has been handed over to a Chinese outfit, Sepco Electric Power Construction Company.
The minister spoke during a tour of facilities at Olorunshogo and Omotosho power plant in Ondo State.
He also spoke to journalists yesterday on the power sector following the approval of the final detailed engineering design, project management and supervision of the Mambilla project by the FEC. The meeting was presided over by President Goodluck Jonathan in Abuja.
Work on the engineering design and project management contract, which was awarded at a cost of $37.2million, is expected to be completed before the end of this year.
He explained that a Brazilian Power Company has already shown interest in investing in the multi-purpose project and that President Jonathan has already set up a committee to commence discussions on the modality for the involvement of the company.
Jonathan spoke on the issue yesterday in Jalingo, the Taraba State capital while campaigning. He stated that to enhance effective power delivery, strategies to facilitate speedy completion of the Mambilla Hydro-Power project and the Kashimbila Dam in Sardauna and Takum local councils of the state have been mapped out.
If timely completed, the nation, according to the president, would experience rapid growth in the areas of power, agriculture as well as other sectors of the economy.
Jonathan, with whom were Vice President Namadi Sambo, Governors Isa Yuguda and Danbaba Suntai of Bauchi and Taraba states, the PDP's Acting National Chairman, Dr. Bello Haliru Mohammed among others, stressed that over N14 billion has so far been sunk on the dam.
Source: FEC approves power sector contracts (http://ngrguardiannews.com/index.php?option=com_content&view=article&id=38868:fec-approves-power-sector-contracts-&catid=1:national&Itemid=559)