FG says banking industry played a key role in success of power privatization exercise.

[FMINigeria]

The Federal Government has commended the banking industry for its role in the success of the power privatization exercise, saying it shows confidence in the administration and the country.

Vice President Arc Mohammed Namadi Sambo who made the commendation, Friday, in Abuja during a Special Forum on Financing the Power Sector Reforms for Economic Development, said, "Let me also congratulate the Banking Industry for its contribution so far to put our great country on the part of growth to attain our aspiration to be among the top twenty economies in the world through reliable, affordable and adequate power supply."

The Vice President, while congratulating the Central Bank of Nigeria for kick starting the privatization process, through its N300billion intervention fund for the Power and Aviation sectors, further challenged the banking industry to participate in funding the US8 Million gas-to-power project and the $3.7 Billion 20,000 megawatts power transmission capacity by 2016 project, among several others.

Arc Sambo stated that, "The Federal Government, through NNPC, NGC and the private sector, is implementing a robust programme for the realization of the Nigerian Gas Master-plan with specific interest in meeting the gas-to-power demand in the country at a planned cost of about US$8billion. Already, US$500 Million out of the US$1Billion Euro-Bond would be utilized as counterpart funding for implementation of this project."

On the power transmission capacity, the Vice President said, "The total funding for this project is estimated by the Transmission Company of Nigeria (TCN) to cost about US$3.7Billion. I am pleased to inform you that these projects have already been arranged. US$1.6Billion is coming from the sale proceeds of the NIPP/NDPHC's ten new power plants; US$500 Million from the China-EXIM bank and the balance from the African Development Bank (AfDB), IDB and our local banks."

While speaking further, the Vice President disclosed that privatization of PHCN successor companies had reached completion stage with the successful resolution of labour issues and the handing over of the Generating Companies (GENCOS) and Distribution Companies (DISCOS) to new owners on Monday, 30 September, 2013 in a ceremony to be conducted by President Goodluck Jonathan. He particularly commended the private sector for their confidence in the exercise.

He reiterated Government's commitment to the realization of its ambition, among other competing and equally important sectors of transport, agriculture, education, to meet the vision 20:2020 target of 20,000mw.

The CBN Governor, Malam Sanusi Lamido Sanusi in his remarks, said, the forum was to review the contribution of the Banking Industry to the Power Sector Reform Programme. He said, the Apex Bank in collaboration with the Ministry of Finance is reviewing the Development Finance Institutions and creates DFIs that would finance critical development projects.

When he was speaking, the Chairman of the Technical Committee of the National Council on Privatization, Mr. Atedo Peterside gave a rundown of the processes leading to the success of the privatization exercise. He challenged the banking industry not to relent in its support to the power sector, noting the huge potentials of the sector to the growth of the economy.



Source: FG says banking industry played a key role in success of power privatization exercise.
Federal Ministry of Information (FMI) Nigeria