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  •  The Producer Price Index PPI for local production in Malaysia eased further to 6 8 per cent in August as compared to 7 6 per cent in July official data showed Thursday The August increase was attributed to the manufacturing and mining index which grew 9 4 per cent and 5 8 per cent respectively The Department of Statistics Malaysia said in a statement Meanwhile the agriculture forestry and fishing index fell 10 6 per cent in August However water supply and electricity and gas supply indices recorded an increase of 3 per cent and 0 9 per cent in August respectively For a monthly comparison the PPI for local production in Malaysia declined for three consecutive months with a fall of 0 2 per cent in August The decrease was due to the mining index which recorded a decline of 3 7 per cent In addition the manufacturing index also posted a decrease of 0 1 per cent in August It recorded the first decline since September 2020 0 2 per cent after posting an increase for 22 consecutive months NewsSourceCredit NAN
    Malaysia’s producer price index eases to 6.8% in August
     The Producer Price Index PPI for local production in Malaysia eased further to 6 8 per cent in August as compared to 7 6 per cent in July official data showed Thursday The August increase was attributed to the manufacturing and mining index which grew 9 4 per cent and 5 8 per cent respectively The Department of Statistics Malaysia said in a statement Meanwhile the agriculture forestry and fishing index fell 10 6 per cent in August However water supply and electricity and gas supply indices recorded an increase of 3 per cent and 0 9 per cent in August respectively For a monthly comparison the PPI for local production in Malaysia declined for three consecutive months with a fall of 0 2 per cent in August The decrease was due to the mining index which recorded a decline of 3 7 per cent In addition the manufacturing index also posted a decrease of 0 1 per cent in August It recorded the first decline since September 2020 0 2 per cent after posting an increase for 22 consecutive months NewsSourceCredit NAN
    Malaysia’s producer price index eases to 6.8% in August
    Foreign5 days ago

    Malaysia’s producer price index eases to 6.8% in August

    The Producer Price Index (PPI) for local production in Malaysia eased further to 6.8 per cent in August as compared to 7.6 per cent in July, official data showed Thursday.

    The August increase was attributed to the manufacturing and mining index which grew 9.4 per cent and 5.8 per cent respectively.

    The Department of Statistics Malaysia said in a statement.

    Meanwhile, the agriculture, forestry and fishing index fell 10.6 per cent in August.

    However, water supply and electricity and gas supply indices recorded an increase of 3 per cent and 0.9 per cent in August, respectively.

    For a monthly comparison, the PPI for local production in Malaysia declined for three consecutive months with a fall of 0.2 per cent in August.

    The decrease was due to the mining index which recorded a decline of 3.7 per cent.

    In addition, the manufacturing index also posted a decrease of 0.1 per cent in August.

    It recorded the first decline since September 2020 (-0.2 per cent) after posting an increase for 22 consecutive months.

    (
    NewsSourceCredit: NAN

  •  Amb George Jimoh the Executive Director Passion for Peace Initiative PPI an NGO says effective communication and tolerance are sone of the ingredients that make a peaceful home and society Jimoh said this in Ilorin while delivering a lecture organised to mark this year s International Day of Peace The director spoke on the theme The Reunion Domestic Violence and Societal Peace A peaceful family is a productive society He said a progressive home need team and collective work According to him a bird cannot fly with one wing except with the two wings The best teacher to children is parent So whatever the parent does will be impacted on the children If you can learn how to forgive and forget whenever your spouse offends you you will build a peaceful home and peaceful society Spouse have to respect each other understand ourselves and build a peaceful home and a peaceful society Jimoh said In her remarks Mrs Anthonia Erinfolami Daniel the Facilitator of PPI said that some spouse lack tolerance that is why there is no peace in some parts of the country She added that emotional violence kill faster than physical violence saying that emotional violence leads to depression and later to death According to her presently in Nigeria partners violating each other is about 60 to 40 per cent from angle of women to men During the lock down of COVID 19 there is high rate of domestic violence because some spouse can t tolerate each other even some parents can t tolerate their children Poverty is also one of the ingredients that contribute to domestic violence There is what they call economic violence when a man that is supposed to provide for the family refused to do so she added She explained that a peaceful husband a peaceful wife and peaceful children would make a peaceful community and peaceful society She therefore urged the public to show love to each other in order to build a peaceful society NewsSourceCredit NAN
    Day of Peace: Effective communication panacea to peaceful society -Amb. Jimoh
     Amb George Jimoh the Executive Director Passion for Peace Initiative PPI an NGO says effective communication and tolerance are sone of the ingredients that make a peaceful home and society Jimoh said this in Ilorin while delivering a lecture organised to mark this year s International Day of Peace The director spoke on the theme The Reunion Domestic Violence and Societal Peace A peaceful family is a productive society He said a progressive home need team and collective work According to him a bird cannot fly with one wing except with the two wings The best teacher to children is parent So whatever the parent does will be impacted on the children If you can learn how to forgive and forget whenever your spouse offends you you will build a peaceful home and peaceful society Spouse have to respect each other understand ourselves and build a peaceful home and a peaceful society Jimoh said In her remarks Mrs Anthonia Erinfolami Daniel the Facilitator of PPI said that some spouse lack tolerance that is why there is no peace in some parts of the country She added that emotional violence kill faster than physical violence saying that emotional violence leads to depression and later to death According to her presently in Nigeria partners violating each other is about 60 to 40 per cent from angle of women to men During the lock down of COVID 19 there is high rate of domestic violence because some spouse can t tolerate each other even some parents can t tolerate their children Poverty is also one of the ingredients that contribute to domestic violence There is what they call economic violence when a man that is supposed to provide for the family refused to do so she added She explained that a peaceful husband a peaceful wife and peaceful children would make a peaceful community and peaceful society She therefore urged the public to show love to each other in order to build a peaceful society NewsSourceCredit NAN
    Day of Peace: Effective communication panacea to peaceful society -Amb. Jimoh
    General news2 weeks ago

    Day of Peace: Effective communication panacea to peaceful society -Amb. Jimoh

    Amb. George Jimoh, the Executive Director, Passion for Peace Initiative (PPI), an NGO, says effective communication and tolerance are sone of the ingredients that make a peaceful home and society.

    Jimoh said this in Ilorin while delivering a lecture organised to mark this year’s International Day of Peace.

    The director spoke on the theme “The Reunion: Domestic Violence and Societal Peace.

    A peaceful family is a productive society”.

    He said a progressive home need team and collective work.

    According to him, a bird cannot fly with one wing except with the two wings.

    “The best teacher to children is parent.

    So, whatever the parent does will be impacted on the children.

    “If you can learn how to forgive and forget whenever your spouse offends you, you will build a peaceful home and peaceful society.

    “Spouse have to respect each other, understand ourselves and build a peaceful home and a peaceful society,” Jimoh said.

    In her remarks, Mrs Anthonia Erinfolami-Daniel, the Facilitator of PPI, said that some spouse lack tolerance that is why there is no peace in some parts of the country.

    She added that emotional violence kill faster than physical violence, saying that emotional violence leads to depression and later to death.

    According to her, presently in Nigeria, partners violating each other is about 60 to 40 per cent from angle of women to men.

    “During the lock down of COVID-19, there is high rate of domestic violence because some spouse can’t tolerate each other, even some parents can’t tolerate their children.

    “Poverty is also one of the ingredients that contribute to domestic violence.

    “There is what they call economic violence; when a man that is supposed to provide for the family refused to do so,” she added.

    She explained that a peaceful husband, a peaceful wife and peaceful children would make a peaceful community and peaceful society.

    She therefore urged the public to show love to each other in order to build a peaceful society. 


    NewsSourceCredit: NAN

  •  The Presidency has again reeled out 28 page of President Muhammadu Buhari s strides in Oil and gas reforms Digital economy Mines and steel development Agriculture Education Health Creative Industry Sports and infrastructural development roads bridges rail air and sea ports housing and many others The News Agency of Nigeria reports that the president s scorecard is coming ahead of the seven year anniversary of the Buhari led administration on May 29 2022 President Buhari had in May 29 2015 took the oath of office as President promising to serve Nigeria faithfully in all spheres of national life The seven years milestone according to the President s spokesman Mr Femi Adesina presents a major landmark and opportunity to review the service of the president to the country and its people Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges which are being robustly tackled by the government A one stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done and a lot more will still be done in the 12 months ahead Nigeria under Buhari s watch has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria s Independence Under the administration s Energizing Education Economies and Agriculture Programmes the government had so far taken clean and reliable energy Solar and Gas to Federal Universities Teaching Hospitals Markets and Rural Areas across the country The four Universities completed and commissioned already are Bayero University Kano BUK Kano FUNAI Ebonyi ATBU Bauchi and FUPRE Delta Sabon Gari Market in Kano Ariaria Market in Aba and Sura Shopping Complex in Lagos On National Mass Metering Programme the Central Bank of Nigeria is providing N200 billion for this and so far more than one million meters have been rolled out in the first phase This first phase generated more than 10 000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on grid consumers launched in August 2020 The Solar Power Naija SPN Launched in April 2021 to deliver 5 million off grid solar connections would be impacting more than 20 million Nigerians and financed through Central Bank of Nigeria loans as well as through partnerships with NDPHC NNPC and the NSIA The programme is expected to generate an additional N7 billion increase in tax revenues per annum and 10 million in annual import substitution Under Solar Power Naija and NDPHC s partnership ASolar is rolling out 100 000 Solar Home Systems across the country while the NSIA partnering under SPN has announced a N10 billion fund for developers targeting more than 250 000 solar connections In May 2021 the Rural Electrification Agency REA announced the planned deployment of solar powered grids to 200 Primary Health Centres PHC and 104 Unity Schools nationwide Nigeria Electrification Project NEP is a 550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank NEP is a combination of subsidies direct contracts and technical assistance to support Electrification across Nigeria NEP has so far deployed more than 20 000 Standalone Solar Systems SHS as well as Solar Hybrid Mini grids in more than 250 locations across the country The Rural Electrification Fund REF created by the Electricity Power Sector Reform Act of 2005 was operationalized by the Buhari Administration in 2016 Since 2016 the REF under REA has executed more than N4 billion in projects with more than N5 billions of Off Grid mainly Solar projects slated to be executed across Nigeria in 2022 On the special grid interventions the Federal Government has many key grid initiatives with more than N125 2 billion budgeted between 2015 to 2021 for TCN and Development Finance Funding through the likes of World Bank AFDB AFD JICA and others of up to 1 7 billion The Central Bank of Nigeria is also funding 250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery Additionally through the Presidential Power Initiative PPI aka Siemens Power Program an additional 2 0 billion or more will be invested in the Transmission Grid PPI is a Government to Government initiative involving the Governments of Nigeria and Germany and Siemens AG of Germany to upgrade and modernize Nigeria s electricity grid The Contract for the pre engineering phase of the Presidential Power Initiative PPI was signed in Feb 2021 following the 2020 approval for the payment of FGN s counterpart funding for that phase while the first set of equipment contract awards were made in Dec 2021 comprising 10 Mobitra Transformers and 10 Substations In all the PPI will encompass as many as 127 individual Transmission and Distribution projects Brownfield and Greenfield Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha Delta Power Station to Benin as well as the Kano to Katsina 330kV line respectively The 200 million Transmission Infrastructure Project financed by JICA entails the construction of about 200 km of high voltage transmission lines and a number of high voltage substations benefiting several communities in the two States Also through a special CBN intervention for Transmission Distribution interfaces contracts have been awarded for more than 30 Substation Rehabilitations and 1 570MVA transformer capacity upgrades with 34 critical transformers to be installed or replaced On a Policy level the Nigerian Electricity Regulatory Commission NERC has rolled out various policies ranging from a Tariff Capping Regulation for un metered customers to the Eligible Customer Regulations to the introduction of a Service based Tariff Regime and CBN oversight of Disco Bank accounts which has helped improve payment discipline by Discos The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing The ministry has completed or is completing housing projects in 34 States of Nigeria under the National Housing Programme with the support of the State Governments who provided the land So far more than 5 000 houses are at various stages of completion and thousands more are planned The Family Homes Fund Limited FHFL incorporated by the Federal Government of Nigeria in Sept 2016 is the implementing agency for the Buhari Administration s National Social Housing scheme The Fund has now completed more than 13 000 homes across nine States with another 20 000 commencing building works in 2022 In the process these housing developments have created more than 64 000 direct and indirect jobs The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission NIPC Pioneer Status to e Commerce and software development companies Stipulation of N145 per linear meter cap on Highway Right of Way RoW for fibre optic cabling to incentivize investment in rollout Launch of new national 5G policy in 2021 and successful licensing of two private companies to rollout 5G nationally Nigeria s 5G rollout will commence in August 2022 Establishment of new National Data Protection Bureau which is expected to develop primary legislation for data protection and privacy Launch of new National Digital Economy Policy and Strategy by President Buhari in 2019 Drafting of the Nigeria Startup Bill NSB and submission of the draft Bill to the National Assembly for consideration and passage into law Establishment in 2021 of a National Centre for Artificial Intelligence and Robotics NCAIR Ongoing implementation starting 2021 of the National Information and Communication Technology Infrastructure Backbone Phase 2 NICTIB 2 Project The goal of NICTIB is to rollout a nationwide fibre infrastructure network Ongoing construction of a Tier 4 Data Center in Kano to join existing infrastructure in Abuja Tier 3 Data Center and Enugu A Disaster Recovery Site The Kano Data Center is expected to be completed in 2022 The major achievements of the Buhari administration in the area of oil and gas include Buhari s assent to the Petroleum Industry Act on Aug 16 2021 This broke a two decades old jinx and is setting the stage for the unprecedented transformation of Nigeria s oil and gas sector Under the new Act the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022 The regulatory framework for the sector has also changed with the establishment of a the Nigerian Upstream Petroleum Regulatory Commission NUPRC and b the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA which merged the hitherto existing Petroleum Products Pricing Regulatory Agency PPPRA Petroleum Equalization Fund Management Board PEFMB and the Midstream and Downstream Divisions of the Department of Petroleum Resources DPR The historic Signing Ceremony in May 2021 of the Execution of Oil Mining Lease OML 118 Agreements between NNPC Limited and its Contractor Partners Shell Exxon Mobil TOTAL and NAOC These Agreements settled long standing disputes that stalled development and will unlock more than 10 billion of new deep water investment in Nigeria The Buhari administration has declared this decade the Decade of Gas The Federal Government has embarked on the construction of 614km Ajaokuta Kaduna Kano Gas Project the largest domestic gas project in the country Already the government has secured US 45 million financing from the Islamic Development Bank for the Front End Engineering Design FEED Study for the Nigeria Morocco Gas Pipeline NMGP project The Agreement for the Pipeline project was signed by the two countries during President Buhari s State Visit to Morocco in June 2018 When completed it will be the longest offshore pipeline in the world and the second longest pipeline in the world running across 13 countries 11 of them in West Africa It s believed that the successful completion of Nigeria s first Marginal Field Bid Round in almost 20 years is expected to raise in excess of half a billion dollars and open up a new vista of investment in oil and gas Launch of National LPG Expansion Programme including Removal of VAT from the domestic pricing of LPG Financial close and signing of contract for NLNG Train 7 which will grow Nigeria s LNG production capacity by 35 per cent Nigeria and Morocco in 2021 signed an agreement to develop a US 1 4 billion multipurpose industrial platform Ammonia and Di Ammonium Phosphate production plants that will utilize Nigerian gas and Moroccan phosphate to produce 750 000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025 It will be located in Ikot Abasi Akwa Ibom State The nation also witnessed the inauguration in Dec 2020 of the new NPDC Integrated Gas Handling Facility in Edo the largest onshore LPG plant in the country with a processing capacity of 100 million standard cubic feet of gas daily producing 330 tonnes of LPG 345 tonnes of propane and 2 600 barrels of condensate daily The government also established a 350m Nigerian Content Intervention Fund to finance manufacturing contracts and assets in the oil and gas industry The NNPC Limited s National Petroleum Investment Management Services NAPIMS became in 2022 the first Government organization in West and North Africa to receive the ISO 22301 2019 Certification for Business Continuity Management from RINA On the financing and investment in the oil and gas Afreximbank announced in Jan 2022 that it will assist NNPC Limited to raise 5 billion financing to support investments in Nigeria s upstream industry and facilitate expanded energy supply Afrexim also disclosed plans to underwrite 1 billion of the total planned debt Final Investment Decision in January 2021 on a 10 000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board NCDMB in partnership with the private sector The plant is now under construction in Odeama Brass Bayelsa State On Policy Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery in Imo State and broke ground on Phase 2 which will add 20 000bpd processing capacity The Nigerian National Petroleum Corporation NNPC on Dec 21 2021 handed over a symbolic cheque of N621 24 Billion for the rehabilitation of 21 critical roads totalling 1 800km across the country through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019 Note that this does not mean that NNPC has gone into the business of constructing roads instead it is financing the construction of roads through its tax liabilities It s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme NUCOP would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a 10 or less per barrel production cost NAN
    Steps to changing Nigeria by Buhari Administration at 7
     The Presidency has again reeled out 28 page of President Muhammadu Buhari s strides in Oil and gas reforms Digital economy Mines and steel development Agriculture Education Health Creative Industry Sports and infrastructural development roads bridges rail air and sea ports housing and many others The News Agency of Nigeria reports that the president s scorecard is coming ahead of the seven year anniversary of the Buhari led administration on May 29 2022 President Buhari had in May 29 2015 took the oath of office as President promising to serve Nigeria faithfully in all spheres of national life The seven years milestone according to the President s spokesman Mr Femi Adesina presents a major landmark and opportunity to review the service of the president to the country and its people Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges which are being robustly tackled by the government A one stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done and a lot more will still be done in the 12 months ahead Nigeria under Buhari s watch has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria s Independence Under the administration s Energizing Education Economies and Agriculture Programmes the government had so far taken clean and reliable energy Solar and Gas to Federal Universities Teaching Hospitals Markets and Rural Areas across the country The four Universities completed and commissioned already are Bayero University Kano BUK Kano FUNAI Ebonyi ATBU Bauchi and FUPRE Delta Sabon Gari Market in Kano Ariaria Market in Aba and Sura Shopping Complex in Lagos On National Mass Metering Programme the Central Bank of Nigeria is providing N200 billion for this and so far more than one million meters have been rolled out in the first phase This first phase generated more than 10 000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on grid consumers launched in August 2020 The Solar Power Naija SPN Launched in April 2021 to deliver 5 million off grid solar connections would be impacting more than 20 million Nigerians and financed through Central Bank of Nigeria loans as well as through partnerships with NDPHC NNPC and the NSIA The programme is expected to generate an additional N7 billion increase in tax revenues per annum and 10 million in annual import substitution Under Solar Power Naija and NDPHC s partnership ASolar is rolling out 100 000 Solar Home Systems across the country while the NSIA partnering under SPN has announced a N10 billion fund for developers targeting more than 250 000 solar connections In May 2021 the Rural Electrification Agency REA announced the planned deployment of solar powered grids to 200 Primary Health Centres PHC and 104 Unity Schools nationwide Nigeria Electrification Project NEP is a 550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank NEP is a combination of subsidies direct contracts and technical assistance to support Electrification across Nigeria NEP has so far deployed more than 20 000 Standalone Solar Systems SHS as well as Solar Hybrid Mini grids in more than 250 locations across the country The Rural Electrification Fund REF created by the Electricity Power Sector Reform Act of 2005 was operationalized by the Buhari Administration in 2016 Since 2016 the REF under REA has executed more than N4 billion in projects with more than N5 billions of Off Grid mainly Solar projects slated to be executed across Nigeria in 2022 On the special grid interventions the Federal Government has many key grid initiatives with more than N125 2 billion budgeted between 2015 to 2021 for TCN and Development Finance Funding through the likes of World Bank AFDB AFD JICA and others of up to 1 7 billion The Central Bank of Nigeria is also funding 250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery Additionally through the Presidential Power Initiative PPI aka Siemens Power Program an additional 2 0 billion or more will be invested in the Transmission Grid PPI is a Government to Government initiative involving the Governments of Nigeria and Germany and Siemens AG of Germany to upgrade and modernize Nigeria s electricity grid The Contract for the pre engineering phase of the Presidential Power Initiative PPI was signed in Feb 2021 following the 2020 approval for the payment of FGN s counterpart funding for that phase while the first set of equipment contract awards were made in Dec 2021 comprising 10 Mobitra Transformers and 10 Substations In all the PPI will encompass as many as 127 individual Transmission and Distribution projects Brownfield and Greenfield Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha Delta Power Station to Benin as well as the Kano to Katsina 330kV line respectively The 200 million Transmission Infrastructure Project financed by JICA entails the construction of about 200 km of high voltage transmission lines and a number of high voltage substations benefiting several communities in the two States Also through a special CBN intervention for Transmission Distribution interfaces contracts have been awarded for more than 30 Substation Rehabilitations and 1 570MVA transformer capacity upgrades with 34 critical transformers to be installed or replaced On a Policy level the Nigerian Electricity Regulatory Commission NERC has rolled out various policies ranging from a Tariff Capping Regulation for un metered customers to the Eligible Customer Regulations to the introduction of a Service based Tariff Regime and CBN oversight of Disco Bank accounts which has helped improve payment discipline by Discos The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing The ministry has completed or is completing housing projects in 34 States of Nigeria under the National Housing Programme with the support of the State Governments who provided the land So far more than 5 000 houses are at various stages of completion and thousands more are planned The Family Homes Fund Limited FHFL incorporated by the Federal Government of Nigeria in Sept 2016 is the implementing agency for the Buhari Administration s National Social Housing scheme The Fund has now completed more than 13 000 homes across nine States with another 20 000 commencing building works in 2022 In the process these housing developments have created more than 64 000 direct and indirect jobs The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission NIPC Pioneer Status to e Commerce and software development companies Stipulation of N145 per linear meter cap on Highway Right of Way RoW for fibre optic cabling to incentivize investment in rollout Launch of new national 5G policy in 2021 and successful licensing of two private companies to rollout 5G nationally Nigeria s 5G rollout will commence in August 2022 Establishment of new National Data Protection Bureau which is expected to develop primary legislation for data protection and privacy Launch of new National Digital Economy Policy and Strategy by President Buhari in 2019 Drafting of the Nigeria Startup Bill NSB and submission of the draft Bill to the National Assembly for consideration and passage into law Establishment in 2021 of a National Centre for Artificial Intelligence and Robotics NCAIR Ongoing implementation starting 2021 of the National Information and Communication Technology Infrastructure Backbone Phase 2 NICTIB 2 Project The goal of NICTIB is to rollout a nationwide fibre infrastructure network Ongoing construction of a Tier 4 Data Center in Kano to join existing infrastructure in Abuja Tier 3 Data Center and Enugu A Disaster Recovery Site The Kano Data Center is expected to be completed in 2022 The major achievements of the Buhari administration in the area of oil and gas include Buhari s assent to the Petroleum Industry Act on Aug 16 2021 This broke a two decades old jinx and is setting the stage for the unprecedented transformation of Nigeria s oil and gas sector Under the new Act the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022 The regulatory framework for the sector has also changed with the establishment of a the Nigerian Upstream Petroleum Regulatory Commission NUPRC and b the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA which merged the hitherto existing Petroleum Products Pricing Regulatory Agency PPPRA Petroleum Equalization Fund Management Board PEFMB and the Midstream and Downstream Divisions of the Department of Petroleum Resources DPR The historic Signing Ceremony in May 2021 of the Execution of Oil Mining Lease OML 118 Agreements between NNPC Limited and its Contractor Partners Shell Exxon Mobil TOTAL and NAOC These Agreements settled long standing disputes that stalled development and will unlock more than 10 billion of new deep water investment in Nigeria The Buhari administration has declared this decade the Decade of Gas The Federal Government has embarked on the construction of 614km Ajaokuta Kaduna Kano Gas Project the largest domestic gas project in the country Already the government has secured US 45 million financing from the Islamic Development Bank for the Front End Engineering Design FEED Study for the Nigeria Morocco Gas Pipeline NMGP project The Agreement for the Pipeline project was signed by the two countries during President Buhari s State Visit to Morocco in June 2018 When completed it will be the longest offshore pipeline in the world and the second longest pipeline in the world running across 13 countries 11 of them in West Africa It s believed that the successful completion of Nigeria s first Marginal Field Bid Round in almost 20 years is expected to raise in excess of half a billion dollars and open up a new vista of investment in oil and gas Launch of National LPG Expansion Programme including Removal of VAT from the domestic pricing of LPG Financial close and signing of contract for NLNG Train 7 which will grow Nigeria s LNG production capacity by 35 per cent Nigeria and Morocco in 2021 signed an agreement to develop a US 1 4 billion multipurpose industrial platform Ammonia and Di Ammonium Phosphate production plants that will utilize Nigerian gas and Moroccan phosphate to produce 750 000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025 It will be located in Ikot Abasi Akwa Ibom State The nation also witnessed the inauguration in Dec 2020 of the new NPDC Integrated Gas Handling Facility in Edo the largest onshore LPG plant in the country with a processing capacity of 100 million standard cubic feet of gas daily producing 330 tonnes of LPG 345 tonnes of propane and 2 600 barrels of condensate daily The government also established a 350m Nigerian Content Intervention Fund to finance manufacturing contracts and assets in the oil and gas industry The NNPC Limited s National Petroleum Investment Management Services NAPIMS became in 2022 the first Government organization in West and North Africa to receive the ISO 22301 2019 Certification for Business Continuity Management from RINA On the financing and investment in the oil and gas Afreximbank announced in Jan 2022 that it will assist NNPC Limited to raise 5 billion financing to support investments in Nigeria s upstream industry and facilitate expanded energy supply Afrexim also disclosed plans to underwrite 1 billion of the total planned debt Final Investment Decision in January 2021 on a 10 000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board NCDMB in partnership with the private sector The plant is now under construction in Odeama Brass Bayelsa State On Policy Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery in Imo State and broke ground on Phase 2 which will add 20 000bpd processing capacity The Nigerian National Petroleum Corporation NNPC on Dec 21 2021 handed over a symbolic cheque of N621 24 Billion for the rehabilitation of 21 critical roads totalling 1 800km across the country through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019 Note that this does not mean that NNPC has gone into the business of constructing roads instead it is financing the construction of roads through its tax liabilities It s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme NUCOP would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a 10 or less per barrel production cost NAN
    Steps to changing Nigeria by Buhari Administration at 7
    General news4 months ago

    Steps to changing Nigeria by Buhari Administration at 7

    The Presidency has again, reeled out 28-page of President Muhammadu Buhari’s strides in Oil and gas reforms, Digital economy, Mines and steel development, Agriculture, Education, Health, Creative Industry, Sports and infrastructural development; roads, bridges, rail, air and sea ports, housing, and many others.
    The News Agency of Nigeria reports that the president’s scorecard is coming ahead of the seven year anniversary of the Buhari-led administration on May 29, 2022.
    President Buhari had in May 29, 2015, took the oath of office as President, promising to serve Nigeria faithfully in all spheres of national life.
    The seven years milestone, according to the President’s spokesman, Mr Femi Adesina, presents a major landmark and opportunity to review the service of the president to the country, and its people.
    Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges, which are being robustly tackled by the government.
    A one-stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done, and a lot more will still be done in the 12 months ahead.
    Nigeria, under Buhari’s watch, has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria’s Independence.
    Under the administration’s Energizing Education, Economies and Agriculture Programmes, the government had so far taken clean and reliable energy (Solar and Gas) to Federal Universities, Teaching Hospitals, Markets and Rural Areas across the country.
    The four Universities completed and commissioned already are, Bayero University Kano ( BUK ), Kano, FUNAI (Ebonyi), ATBU (Bauchi) and FUPRE (Delta), Sabon-Gari Market in Kano, Ariaria Market in Aba, and Sura Shopping Complex in Lagos.
    On National Mass Metering Programme, the Central Bank of Nigeria is providing N200 billion for this, and so far, more than one million meters have been rolled out, in the first phase.
    This first phase generated more than 10,000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on-grid consumers, launched in August 2020.
    The Solar Power Naija (SPN), Launched in April 2021 to deliver 5 million off-grid solar connections, would be impacting more than 20 million Nigerians, and financed through Central Bank of Nigeria loans, as well as through partnerships with NDPHC, NNPC and the NSIA.
    The programme is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.
    ”Under Solar Power Naija and NDPHC’s partnership, ASolar is rolling out 100,000 Solar Home Systems across the country, while the NSIA (partnering under SPN) has announced a N10 billion fund for developers, targeting more than 250,000 solar connections.”
    In May 2021, the Rural Electrification Agency (REA) announced the planned deployment of solar-powered grids to 200 Primary Health Centres (PHC) and 104 Unity Schools nationwide.
    Nigeria Electrification Project (NEP) is a $550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank. NEP is a combination of subsidies, direct contracts and technical assistance to support Electrification across Nigeria.
    NEP has so far deployed more than 20,000 Standalone Solar Systems (SHS), as well as Solar Hybrid Mini-grids in more than 250 locations across the country.
    The Rural Electrification Fund (REF), created by the Electricity Power Sector Reform Act of 2005, was operationalized by the Buhari Administration in 2016.
    Since 2016, the REF under REA has executed more than N4 billion in projects, with more than N5 billions of Off-Grid (mainly Solar) projects slated to be executed across Nigeria in 2022.
    On the special grid interventions, the Federal Government has many key grid initiatives with more than N125.2 billion budgeted between 2015 to 2021 for TCN, and Development Finance Funding through the likes of World Bank, AFDB, AFD, JICA and others of up to $1.7 billion.
    The Central Bank of Nigeria is also funding $250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery.
    Additionally, through the Presidential Power Initiative (PPI), aka Siemens Power Program, an additional $2.0 billion or more will be invested in the Transmission Grid.
    PPI is a Government-to-Government initiative involving the Governments of Nigeria and Germany, and Siemens AG of Germany, to upgrade and modernize Nigeria’s electricity grid.
    The Contract for the pre-engineering phase of the Presidential Power Initiative (PPI) was signed in Feb. 2021, following the 2020 approval for the payment of FGN’s counterpart funding for that phase, while the first set of equipment contract awards were made in Dec. 2021, comprising 10 Mobitra Transformers and 10 Substations.
    In all the PPI will encompass as many as 127 individual Transmission and Distribution projects (Brownfield and Greenfield).
    Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha, Delta Power Station to Benin as well as the Kano to Katsina 330kV line (respectively).
    The $200 million Transmission Infrastructure Project, financed by JICA entails the construction of about 200 km of high-voltage transmission lines and a number of high voltage substations, benefiting several communities in the two States.
    Also through a special CBN intervention for Transmission Distribution interfaces, contracts have been awarded for more than 30 Substation Rehabilitations and 1,570MVA transformer capacity upgrades, with 34 critical transformers to be installed or replaced.
    On a Policy level, the Nigerian Electricity Regulatory Commission (NERC) has rolled out various policies ranging from a Tariff-Capping Regulation for un-metered customers, to the Eligible Customer Regulations, to the introduction of a Service-based Tariff Regime and CBN oversight of Disco Bank accounts (which has helped improve payment discipline by Discos).
    The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing.
    The ministry has completed or is completing housing projects in 34 States of Nigeria, under the National Housing Programme, with the support of the State Governments, who provided the land.
    So far more than 5,000 houses are at various stages of completion, and thousands more are planned.
    The Family Homes Fund Limited (FHFL), incorporated by the Federal Government of Nigeria in Sept. 2016, is the implementing agency for the Buhari Administration’s National Social Housing scheme.
    The Fund has now completed more than 13,000 homes across nine States, with another 20,000 commencing building works in 2022. In the process these housing developments have created more than 64,000 direct and indirect jobs.
    The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission (NIPC) ‘Pioneer Status’ to e-Commerce and software development companies.
    ”Stipulation of N145 per linear meter cap on Highway Right of Way (RoW) for fibre optic cabling, to incentivize investment in rollout.
    ”Launch of new national 5G policy in 2021, and successful licensing of two private companies to rollout 5G nationally. Nigeria’s 5G rollout will commence in August 2022.
    ”Establishment of new National Data Protection Bureau, which is expected to develop “primary legislation for data protection and privacy.”
    ”Launch of new “National Digital Economy Policy and Strategy”, by President Buhari in 2019.
    ‘ ‘Drafting of the Nigeria Startup Bill (NSB), and submission of the draft Bill to the National Assembly for consideration and passage into law.
    – Establishment, in 2021, of a National Centre for Artificial Intelligence and Robotics (NCAIR).
    ”Ongoing implementation, starting 2021, of the National Information and Communication Technology Infrastructure Backbone Phase 2 (NICTIB-2) Project.
    ”The goal of NICTIB is to rollout a nationwide fibre infrastructure network.
    ”Ongoing construction of a Tier-4 Data Center in Kano, to join existing infrastructure in Abuja (Tier-3 Data Center) and Enugu (A Disaster Recovery Site). The Kano Data Center is expected to be completed in 2022.”
    The major achievements of the Buhari administration in the area of oil and gas include Buhari’s assent to the Petroleum Industry Act on Aug, 16, 2021.
    This, broke a two-decades-old jinx and is setting the stage for the unprecedented transformation of Nigeria’s oil and gas sector.
    Under the new Act, the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022.
    The regulatory framework for the sector has also changed, with the establishment of:
    (a) the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and
    (b) the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which merged the hitherto-existing Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalization Fund (Management) Board(PEFMB), and the Midstream and Downstream Divisions of the Department of Petroleum Resources (DPR).
    The historic Signing Ceremony, in May 2021, of the Execution of Oil Mining Lease (OML) 118 Agreements between NNPC Limited and its Contractor Partners: Shell, Exxon Mobil, TOTAL and NAOC.
    These Agreements settled long-standing disputes that stalled development, and will unlock more than $10 billion of new deep-water investment in Nigeria.
    The Buhari administration has declared this decade the “Decade of Gas.”
    The Federal Government has embarked on the construction of 614km Ajaokuta-Kaduna-Kano Gas Project, the largest domestic gas project in the country.
    Already, the government has secured US$45 million financing from the Islamic Development Bank, for the Front-End Engineering Design (FEED) Study for the Nigeria–Morocco Gas Pipeline (NMGP) project.
    The Agreement for the Pipeline project was signed by the two countries during President Buhari’s State Visit to Morocco in June 2018.
    When completed it will be the longest offshore pipeline in the world, and the second longest pipeline in the world, running across 13 countries, 11 of them in West Africa.
    It’s believed that the successful completion of Nigeria’s first Marginal Field Bid Round in almost 20 years, is expected to raise in excess of half a billion dollars, and open up a new vista of investment in oil and gas.
    ”Launch of National LPG Expansion Programme (including Removal of VAT from the domestic pricing of LPG)
    ”Financial close and signing of contract for NLNG Train 7, which will grow Nigeria’s LNG production capacity by 35 per cent.
    ”Nigeria and Morocco in 2021 signed an agreement to develop a US$1.4 billion multipurpose industrial platform (Ammonia and Di-Ammonium Phosphate production plants) that will utilize Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025.
    ”It will be located in Ikot-Abasi, Akwa-Ibom State.”
    The nation also witnessed the inauguration, in Dec. 2020, of the new NPDC Integrated Gas Handling Facility in Edo, the largest onshore LPG plant in the country, with a processing capacity of 100 million standard cubic feet of gas daily, producing 330 tonnes of LPG, 345 tonnes of propane and 2,600 barrels of condensate, daily.
    The government also established a $350m Nigerian Content Intervention Fund, to finance manufacturing, contracts and assets in the oil and gas industry.
    ”The NNPC Limited’s National Petroleum Investment Management Services (NAPIMS) became, in 2022, the first Government organization in West and North Africa to receive the ISO 22301:2019 Certification for Business Continuity Management from RINA.”
    On the financing and investment in the oil and gas, Afreximbank announced in Jan. 2022 that it will assist NNPC Limited to raise $5 billion financing to support investments in Nigeria’s upstream industry, and facilitate expanded energy supply.
    Afrexim also disclosed plans to underwrite $1 billion of the total planned debt.
    ”Final Investment Decision in January 2021 on a 10,000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant, being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board (NCDMB), in partnership with the private sector.
    ”The plant is now under construction in Odeama, Brass, Bayelsa State.
    On Policy, Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta, the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta.
    In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery, in Imo State, and broke ground on Phase 2, which will add 20,000bpd processing capacity.
    The Nigerian National Petroleum Corporation (NNPC), on Dec. 21, 2021, handed over a symbolic cheque of N621.24 Billion for the rehabilitation of 21 critical roads (totalling 1,800km) across the country, through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019.
    ”Note that this does not mean that NNPC has gone into the business of constructing roads; instead it is financing the construction of roads, through its tax liabilities.”
    It’s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme (NUCOP), would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a $10 or less per barrel production cost.

    (NAN)

  •  The Presidency has again reeled out 28 page of President Muhammadu Buhari s strides in Oil and gas reforms Digital economy Mines and steel development Agriculture Education Health Creative Industry Sports and infrastructural development roads bridges rail air and sea ports housing and many others The News Agency of Nigeria reports that the president s scorecard is coming ahead of the seven year anniversary of the Buhari led administration on May 29 2022 President Buhari had in May 29 2015 took the oath of office as President promising to serve Nigeria faithfully in all spheres of national life The seven years milestone according to the President s spokesman Mr Femi Adesina presents a major landmark and opportunity to review the service of the president to the country and its people Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges which are being robustly tackled by the government A one stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done and a lot more will still be done in the 12 months ahead Nigeria under Buhari s watch has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria s Independence Under the administration s Energizing Education Economies and Agriculture Programmes the government had so far taken clean and reliable energy Solar and Gas to Federal Universities Teaching Hospitals Markets and Rural Areas across the country The four Universities completed and commissioned already are Bayero University Kano BUK Kano FUNAI Ebonyi ATBU Bauchi and FUPRE Delta Sabon Gari Market in Kano Ariaria Market in Aba and Sura Shopping Complex in Lagos On National Mass Metering Programme the Central Bank of Nigeria is providing N200 billion for this and so far more than one million meters have been rolled out in the first phase This first phase generated more than 10 000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on grid consumers launched in August 2020 The Solar Power Naija SPN Launched in April 2021 to deliver 5 million off grid solar connections would be impacting more than 20 million Nigerians and financed through Central Bank of Nigeria loans as well as through partnerships with NDPHC NNPC and the NSIA The programme is expected to generate an additional N7 billion increase in tax revenues per annum and 10 million in annual import substitution Under Solar Power Naija and NDPHC s partnership ASolar is rolling out 100 000 Solar Home Systems across the country while the NSIA partnering under SPN has announced a N10 billion fund for developers targeting more than 250 000 solar connections In May 2021 the Rural Electrification Agency REA announced the planned deployment of solar powered grids to 200 Primary Health Centres PHC and 104 Unity Schools nationwide Nigeria Electrification Project NEP is a 550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank NEP is a combination of subsidies direct contracts and technical assistance to support Electrification across Nigeria NEP has so far deployed more than 20 000 Standalone Solar Systems SHS as well as Solar Hybrid Mini grids in more than 250 locations across the country The Rural Electrification Fund REF created by the Electricity Power Sector Reform Act of 2005 was operationalized by the Buhari Administration in 2016 Since 2016 the REF under REA has executed more than N4 billion in projects with more than N5 billions of Off Grid mainly Solar projects slated to be executed across Nigeria in 2022 On the special grid interventions the Federal Government has many key grid initiatives with more than N125 2 billion budgeted between 2015 to 2021 for TCN and Development Finance Funding through the likes of World Bank AFDB AFD JICA and others of up to 1 7 billion The Central Bank of Nigeria is also funding 250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery Additionally through the Presidential Power Initiative PPI aka Siemens Power Program an additional 2 0 billion or more will be invested in the Transmission Grid PPI is a Government to Government initiative involving the Governments of Nigeria and Germany and Siemens AG of Germany to upgrade and modernize Nigeria s electricity grid The Contract for the pre engineering phase of the Presidential Power Initiative PPI was signed in Feb 2021 following the 2020 approval for the payment of FGN s counterpart funding for that phase while the first set of equipment contract awards were made in Dec 2021 comprising 10 Mobitra Transformers and 10 Substations In all the PPI will encompass as many as 127 individual Transmission and Distribution projects Brownfield and Greenfield Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha Delta Power Station to Benin as well as the Kano to Katsina 330kV line respectively The 200 million Transmission Infrastructure Project financed by JICA entails the construction of about 200 km of high voltage transmission lines and a number of high voltage substations benefiting several communities in the two States Also through a special CBN intervention for Transmission Distribution interfaces contracts have been awarded for more than 30 Substation Rehabilitations and 1 570MVA transformer capacity upgrades with 34 critical transformers to be installed or replaced On a Policy level the Nigerian Electricity Regulatory Commission NERC has rolled out various policies ranging from a Tariff Capping Regulation for un metered customers to the Eligible Customer Regulations to the introduction of a Service based Tariff Regime and CBN oversight of Disco Bank accounts which has helped improve payment discipline by Discos The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing The ministry has completed or is completing housing projects in 34 States of Nigeria under the National Housing Programme with the support of the State Governments who provided the land So far more than 5 000 houses are at various stages of completion and thousands more are planned The Family Homes Fund Limited FHFL incorporated by the Federal Government of Nigeria in Sept 2016 is the implementing agency for the Buhari Administration s National Social Housing scheme The Fund has now completed more than 13 000 homes across nine States with another 20 000 commencing building works in 2022 In the process these housing developments have created more than 64 000 direct and indirect jobs The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission NIPC Pioneer Status to e Commerce and software development companies Stipulation of N145 per linear meter cap on Highway Right of Way RoW for fibre optic cabling to incentivize investment in rollout Launch of new national 5G policy in 2021 and successful licensing of two private companies to rollout 5G nationally Nigeria s 5G rollout will commence in August 2022 Establishment of new National Data Protection Bureau which is expected to develop primary legislation for data protection and privacy Launch of new National Digital Economy Policy and Strategy by President Buhari in 2019 Drafting of the Nigeria Startup Bill NSB and submission of the draft Bill to the National Assembly for consideration and passage into law Establishment in 2021 of a National Centre for Artificial Intelligence and Robotics NCAIR Ongoing implementation starting 2021 of the National Information and Communication Technology Infrastructure Backbone Phase 2 NICTIB 2 Project The goal of NICTIB is to rollout a nationwide fibre infrastructure network Ongoing construction of a Tier 4 Data Center in Kano to join existing infrastructure in Abuja Tier 3 Data Center and Enugu A Disaster Recovery Site The Kano Data Center is expected to be completed in 2022 The major achievements of the Buhari administration in the area of oil and gas include Buhari s assent to the Petroleum Industry Act on Aug 16 2021 This broke a two decades old jinx and is setting the stage for the unprecedented transformation of Nigeria s oil and gas sector Under the new Act the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022 The regulatory framework for the sector has also changed with the establishment of a the Nigerian Upstream Petroleum Regulatory Commission NUPRC and b the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA which merged the hitherto existing Petroleum Products Pricing Regulatory Agency PPPRA Petroleum Equalization Fund Management Board PEFMB and the Midstream and Downstream Divisions of the Department of Petroleum Resources DPR The historic Signing Ceremony in May 2021 of the Execution of Oil Mining Lease OML 118 Agreements between NNPC Limited and its Contractor Partners Shell Exxon Mobil TOTAL and NAOC These Agreements settled long standing disputes that stalled development and will unlock more than 10 billion of new deep water investment in Nigeria The Buhari administration has declared this decade the Decade of Gas The Federal Government has embarked on the construction of 614km Ajaokuta Kaduna Kano Gas Project the largest domestic gas project in the country Already the government has secured US 45 million financing from the Islamic Development Bank for the Front End Engineering Design FEED Study for the Nigeria Morocco Gas Pipeline NMGP project The Agreement for the Pipeline project was signed by the two countries during President Buhari s State Visit to Morocco in June 2018 When completed it will be the longest offshore pipeline in the world and the second longest pipeline in the world running across 13 countries 11 of them in West Africa It s believed that the successful completion of Nigeria s first Marginal Field Bid Round in almost 20 years is expected to raise in excess of half a billion dollars and open up a new vista of investment in oil and gas Launch of National LPG Expansion Programme including Removal of VAT from the domestic pricing of LPG Financial close and signing of contract for NLNG Train 7 which will grow Nigeria s LNG production capacity by 35 per cent Nigeria and Morocco in 2021 signed an agreement to develop a US 1 4 billion multipurpose industrial platform Ammonia and Di Ammonium Phosphate production plants that will utilize Nigerian gas and Moroccan phosphate to produce 750 000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025 It will be located in Ikot Abasi Akwa Ibom State The nation also witnessed the inauguration in Dec 2020 of the new NPDC Integrated Gas Handling Facility in Edo the largest onshore LPG plant in the country with a processing capacity of 100 million standard cubic feet of gas daily producing 330 tonnes of LPG 345 tonnes of propane and 2 600 barrels of condensate daily The government also established a 350m Nigerian Content Intervention Fund to finance manufacturing contracts and assets in the oil and gas industry The NNPC Limited s National Petroleum Investment Management Services NAPIMS became in 2022 the first Government organization in West and North Africa to receive the ISO 22301 2019 Certification for Business Continuity Management from RINA On the financing and investment in the oil and gas Afreximbank announced in Jan 2022 that it will assist NNPC Limited to raise 5 billion financing to support investments in Nigeria s upstream industry and facilitate expanded energy supply Afrexim also disclosed plans to underwrite 1 billion of the total planned debt Final Investment Decision in January 2021 on a 10 000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board NCDMB in partnership with the private sector The plant is now under construction in Odeama Brass Bayelsa State On Policy Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery in Imo State and broke ground on Phase 2 which will add 20 000bpd processing capacity The Nigerian National Petroleum Corporation NNPC on Dec 21 2021 handed over a symbolic cheque of N621 24 Billion for the rehabilitation of 21 critical roads totalling 1 800km across the country through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019 Note that this does not mean that NNPC has gone into the business of constructing roads instead it is financing the construction of roads through its tax liabilities It s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme NUCOP would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a 10 or less per barrel production cost NAN
    2: One-stop shop of achievements of Buhari Administration at 7
     The Presidency has again reeled out 28 page of President Muhammadu Buhari s strides in Oil and gas reforms Digital economy Mines and steel development Agriculture Education Health Creative Industry Sports and infrastructural development roads bridges rail air and sea ports housing and many others The News Agency of Nigeria reports that the president s scorecard is coming ahead of the seven year anniversary of the Buhari led administration on May 29 2022 President Buhari had in May 29 2015 took the oath of office as President promising to serve Nigeria faithfully in all spheres of national life The seven years milestone according to the President s spokesman Mr Femi Adesina presents a major landmark and opportunity to review the service of the president to the country and its people Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges which are being robustly tackled by the government A one stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done and a lot more will still be done in the 12 months ahead Nigeria under Buhari s watch has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria s Independence Under the administration s Energizing Education Economies and Agriculture Programmes the government had so far taken clean and reliable energy Solar and Gas to Federal Universities Teaching Hospitals Markets and Rural Areas across the country The four Universities completed and commissioned already are Bayero University Kano BUK Kano FUNAI Ebonyi ATBU Bauchi and FUPRE Delta Sabon Gari Market in Kano Ariaria Market in Aba and Sura Shopping Complex in Lagos On National Mass Metering Programme the Central Bank of Nigeria is providing N200 billion for this and so far more than one million meters have been rolled out in the first phase This first phase generated more than 10 000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on grid consumers launched in August 2020 The Solar Power Naija SPN Launched in April 2021 to deliver 5 million off grid solar connections would be impacting more than 20 million Nigerians and financed through Central Bank of Nigeria loans as well as through partnerships with NDPHC NNPC and the NSIA The programme is expected to generate an additional N7 billion increase in tax revenues per annum and 10 million in annual import substitution Under Solar Power Naija and NDPHC s partnership ASolar is rolling out 100 000 Solar Home Systems across the country while the NSIA partnering under SPN has announced a N10 billion fund for developers targeting more than 250 000 solar connections In May 2021 the Rural Electrification Agency REA announced the planned deployment of solar powered grids to 200 Primary Health Centres PHC and 104 Unity Schools nationwide Nigeria Electrification Project NEP is a 550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank NEP is a combination of subsidies direct contracts and technical assistance to support Electrification across Nigeria NEP has so far deployed more than 20 000 Standalone Solar Systems SHS as well as Solar Hybrid Mini grids in more than 250 locations across the country The Rural Electrification Fund REF created by the Electricity Power Sector Reform Act of 2005 was operationalized by the Buhari Administration in 2016 Since 2016 the REF under REA has executed more than N4 billion in projects with more than N5 billions of Off Grid mainly Solar projects slated to be executed across Nigeria in 2022 On the special grid interventions the Federal Government has many key grid initiatives with more than N125 2 billion budgeted between 2015 to 2021 for TCN and Development Finance Funding through the likes of World Bank AFDB AFD JICA and others of up to 1 7 billion The Central Bank of Nigeria is also funding 250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery Additionally through the Presidential Power Initiative PPI aka Siemens Power Program an additional 2 0 billion or more will be invested in the Transmission Grid PPI is a Government to Government initiative involving the Governments of Nigeria and Germany and Siemens AG of Germany to upgrade and modernize Nigeria s electricity grid The Contract for the pre engineering phase of the Presidential Power Initiative PPI was signed in Feb 2021 following the 2020 approval for the payment of FGN s counterpart funding for that phase while the first set of equipment contract awards were made in Dec 2021 comprising 10 Mobitra Transformers and 10 Substations In all the PPI will encompass as many as 127 individual Transmission and Distribution projects Brownfield and Greenfield Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha Delta Power Station to Benin as well as the Kano to Katsina 330kV line respectively The 200 million Transmission Infrastructure Project financed by JICA entails the construction of about 200 km of high voltage transmission lines and a number of high voltage substations benefiting several communities in the two States Also through a special CBN intervention for Transmission Distribution interfaces contracts have been awarded for more than 30 Substation Rehabilitations and 1 570MVA transformer capacity upgrades with 34 critical transformers to be installed or replaced On a Policy level the Nigerian Electricity Regulatory Commission NERC has rolled out various policies ranging from a Tariff Capping Regulation for un metered customers to the Eligible Customer Regulations to the introduction of a Service based Tariff Regime and CBN oversight of Disco Bank accounts which has helped improve payment discipline by Discos The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing The ministry has completed or is completing housing projects in 34 States of Nigeria under the National Housing Programme with the support of the State Governments who provided the land So far more than 5 000 houses are at various stages of completion and thousands more are planned The Family Homes Fund Limited FHFL incorporated by the Federal Government of Nigeria in Sept 2016 is the implementing agency for the Buhari Administration s National Social Housing scheme The Fund has now completed more than 13 000 homes across nine States with another 20 000 commencing building works in 2022 In the process these housing developments have created more than 64 000 direct and indirect jobs The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission NIPC Pioneer Status to e Commerce and software development companies Stipulation of N145 per linear meter cap on Highway Right of Way RoW for fibre optic cabling to incentivize investment in rollout Launch of new national 5G policy in 2021 and successful licensing of two private companies to rollout 5G nationally Nigeria s 5G rollout will commence in August 2022 Establishment of new National Data Protection Bureau which is expected to develop primary legislation for data protection and privacy Launch of new National Digital Economy Policy and Strategy by President Buhari in 2019 Drafting of the Nigeria Startup Bill NSB and submission of the draft Bill to the National Assembly for consideration and passage into law Establishment in 2021 of a National Centre for Artificial Intelligence and Robotics NCAIR Ongoing implementation starting 2021 of the National Information and Communication Technology Infrastructure Backbone Phase 2 NICTIB 2 Project The goal of NICTIB is to rollout a nationwide fibre infrastructure network Ongoing construction of a Tier 4 Data Center in Kano to join existing infrastructure in Abuja Tier 3 Data Center and Enugu A Disaster Recovery Site The Kano Data Center is expected to be completed in 2022 The major achievements of the Buhari administration in the area of oil and gas include Buhari s assent to the Petroleum Industry Act on Aug 16 2021 This broke a two decades old jinx and is setting the stage for the unprecedented transformation of Nigeria s oil and gas sector Under the new Act the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022 The regulatory framework for the sector has also changed with the establishment of a the Nigerian Upstream Petroleum Regulatory Commission NUPRC and b the Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA which merged the hitherto existing Petroleum Products Pricing Regulatory Agency PPPRA Petroleum Equalization Fund Management Board PEFMB and the Midstream and Downstream Divisions of the Department of Petroleum Resources DPR The historic Signing Ceremony in May 2021 of the Execution of Oil Mining Lease OML 118 Agreements between NNPC Limited and its Contractor Partners Shell Exxon Mobil TOTAL and NAOC These Agreements settled long standing disputes that stalled development and will unlock more than 10 billion of new deep water investment in Nigeria The Buhari administration has declared this decade the Decade of Gas The Federal Government has embarked on the construction of 614km Ajaokuta Kaduna Kano Gas Project the largest domestic gas project in the country Already the government has secured US 45 million financing from the Islamic Development Bank for the Front End Engineering Design FEED Study for the Nigeria Morocco Gas Pipeline NMGP project The Agreement for the Pipeline project was signed by the two countries during President Buhari s State Visit to Morocco in June 2018 When completed it will be the longest offshore pipeline in the world and the second longest pipeline in the world running across 13 countries 11 of them in West Africa It s believed that the successful completion of Nigeria s first Marginal Field Bid Round in almost 20 years is expected to raise in excess of half a billion dollars and open up a new vista of investment in oil and gas Launch of National LPG Expansion Programme including Removal of VAT from the domestic pricing of LPG Financial close and signing of contract for NLNG Train 7 which will grow Nigeria s LNG production capacity by 35 per cent Nigeria and Morocco in 2021 signed an agreement to develop a US 1 4 billion multipurpose industrial platform Ammonia and Di Ammonium Phosphate production plants that will utilize Nigerian gas and Moroccan phosphate to produce 750 000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025 It will be located in Ikot Abasi Akwa Ibom State The nation also witnessed the inauguration in Dec 2020 of the new NPDC Integrated Gas Handling Facility in Edo the largest onshore LPG plant in the country with a processing capacity of 100 million standard cubic feet of gas daily producing 330 tonnes of LPG 345 tonnes of propane and 2 600 barrels of condensate daily The government also established a 350m Nigerian Content Intervention Fund to finance manufacturing contracts and assets in the oil and gas industry The NNPC Limited s National Petroleum Investment Management Services NAPIMS became in 2022 the first Government organization in West and North Africa to receive the ISO 22301 2019 Certification for Business Continuity Management from RINA On the financing and investment in the oil and gas Afreximbank announced in Jan 2022 that it will assist NNPC Limited to raise 5 billion financing to support investments in Nigeria s upstream industry and facilitate expanded energy supply Afrexim also disclosed plans to underwrite 1 billion of the total planned debt Final Investment Decision in January 2021 on a 10 000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board NCDMB in partnership with the private sector The plant is now under construction in Odeama Brass Bayelsa State On Policy Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery in Imo State and broke ground on Phase 2 which will add 20 000bpd processing capacity The Nigerian National Petroleum Corporation NNPC on Dec 21 2021 handed over a symbolic cheque of N621 24 Billion for the rehabilitation of 21 critical roads totalling 1 800km across the country through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019 Note that this does not mean that NNPC has gone into the business of constructing roads instead it is financing the construction of roads through its tax liabilities It s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme NUCOP would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a 10 or less per barrel production cost NAN
    2: One-stop shop of achievements of Buhari Administration at 7
    General news4 months ago

    2: One-stop shop of achievements of Buhari Administration at 7

    The Presidency has again, reeled out 28-page of President Muhammadu Buhari’s strides in Oil and gas reforms, Digital economy, Mines and steel development, Agriculture, Education, Health, Creative Industry, Sports and infrastructural development; roads, bridges, rail, air and sea ports, housing, and many others.
    The News Agency of Nigeria reports that the president’s scorecard is coming ahead of the seven year anniversary of the Buhari-led administration on May 29, 2022.
    President Buhari had in May 29, 2015, took the oath of office as President, promising to serve Nigeria faithfully in all spheres of national life.
    The seven years milestone, according to the President’s spokesman, Mr Femi Adesina, presents a major landmark and opportunity to review the service of the president to the country, and its people.
    Adesina noted that the Buhari administration has so far delivered in its promises to Nigerians although revisionists would want to look at security challenges, which are being robustly tackled by the government.
    A one-stop shop of the achievements of the Buhari administration at seven indicated that a lot has been done, and a lot more will still be done in the 12 months ahead.
    Nigeria, under Buhari’s watch, has continued to witness the biggest and most ambitious federal infrastructure programme since Nigeria’s Independence.
    Under the administration’s Energizing Education, Economies and Agriculture Programmes, the government had so far taken clean and reliable energy (Solar and Gas) to Federal Universities, Teaching Hospitals, Markets and Rural Areas across the country.
    The four Universities completed and commissioned already are, Bayero University Kano ( BUK ), Kano, FUNAI (Ebonyi), ATBU (Bauchi) and FUPRE (Delta), Sabon-Gari Market in Kano, Ariaria Market in Aba, and Sura Shopping Complex in Lagos.
    On National Mass Metering Programme, the Central Bank of Nigeria is providing N200 billion for this, and so far, more than one million meters have been rolled out, in the first phase.
    This first phase generated more than 10,000 new jobs in meter installation and assembly as the nationwide rollout of electricity meters to all on-grid consumers, launched in August 2020.
    The Solar Power Naija (SPN), Launched in April 2021 to deliver 5 million off-grid solar connections, would be impacting more than 20 million Nigerians, and financed through Central Bank of Nigeria loans, as well as through partnerships with NDPHC, NNPC and the NSIA.
    The programme is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.
    ”Under Solar Power Naija and NDPHC’s partnership, ASolar is rolling out 100,000 Solar Home Systems across the country, while the NSIA (partnering under SPN) has announced a N10 billion fund for developers, targeting more than 250,000 solar connections.”
    In May 2021, the Rural Electrification Agency (REA) announced the planned deployment of solar-powered grids to 200 Primary Health Centres (PHC) and 104 Unity Schools nationwide.
    Nigeria Electrification Project (NEP) is a $550 million programme being implemented by the Federal Government of Nigeria in partnership with the World Bank and African Development Bank. NEP is a combination of subsidies, direct contracts and technical assistance to support Electrification across Nigeria.
    NEP has so far deployed more than 20,000 Standalone Solar Systems (SHS), as well as Solar Hybrid Mini-grids in more than 250 locations across the country.
    The Rural Electrification Fund (REF), created by the Electricity Power Sector Reform Act of 2005, was operationalized by the Buhari Administration in 2016.
    Since 2016, the REF under REA has executed more than N4 billion in projects, with more than N5 billions of Off-Grid (mainly Solar) projects slated to be executed across Nigeria in 2022.
    On the special grid interventions, the Federal Government has many key grid initiatives with more than N125.2 billion budgeted between 2015 to 2021 for TCN, and Development Finance Funding through the likes of World Bank, AFDB, AFD, JICA and others of up to $1.7 billion.
    The Central Bank of Nigeria is also funding $250 million for the rehabilitation of critical interfaces between Transmission and Distribution to increase and stabilize power delivery.
    Additionally, through the Presidential Power Initiative (PPI), aka Siemens Power Program, an additional $2.0 billion or more will be invested in the Transmission Grid.
    PPI is a Government-to-Government initiative involving the Governments of Nigeria and Germany, and Siemens AG of Germany, to upgrade and modernize Nigeria’s electricity grid.
    The Contract for the pre-engineering phase of the Presidential Power Initiative (PPI) was signed in Feb. 2021, following the 2020 approval for the payment of FGN’s counterpart funding for that phase, while the first set of equipment contract awards were made in Dec. 2021, comprising 10 Mobitra Transformers and 10 Substations.
    In all the PPI will encompass as many as 127 individual Transmission and Distribution projects (Brownfield and Greenfield).
    Other ongoing interventions include 330kV Quad Lines in Alaoji to Onitsha, Delta Power Station to Benin as well as the Kano to Katsina 330kV line (respectively).
    The $200 million Transmission Infrastructure Project, financed by JICA entails the construction of about 200 km of high-voltage transmission lines and a number of high voltage substations, benefiting several communities in the two States.
    Also through a special CBN intervention for Transmission Distribution interfaces, contracts have been awarded for more than 30 Substation Rehabilitations and 1,570MVA transformer capacity upgrades, with 34 critical transformers to be installed or replaced.
    On a Policy level, the Nigerian Electricity Regulatory Commission (NERC) has rolled out various policies ranging from a Tariff-Capping Regulation for un-metered customers, to the Eligible Customer Regulations, to the introduction of a Service-based Tariff Regime and CBN oversight of Disco Bank accounts (which has helped improve payment discipline by Discos).
    The Buhari administration has equally recorded tremendous success in the housing sector through the Federal Ministry of Works and Housing.
    The ministry has completed or is completing housing projects in 34 States of Nigeria, under the National Housing Programme, with the support of the State Governments, who provided the land.
    So far more than 5,000 houses are at various stages of completion, and thousands more are planned.
    The Family Homes Fund Limited (FHFL), incorporated by the Federal Government of Nigeria in Sept. 2016, is the implementing agency for the Buhari Administration’s National Social Housing scheme.
    The Fund has now completed more than 13,000 homes across nine States, with another 20,000 commencing building works in 2022. In the process these housing developments have created more than 64,000 direct and indirect jobs.
    The administration has also achieved a lot in the area of digital economy and these include the extension of the Nigerian Investment Promotion Commission (NIPC) ‘Pioneer Status’ to e-Commerce and software development companies.
    ”Stipulation of N145 per linear meter cap on Highway Right of Way (RoW) for fibre optic cabling, to incentivize investment in rollout.
    ”Launch of new national 5G policy in 2021, and successful licensing of two private companies to rollout 5G nationally. Nigeria’s 5G rollout will commence in August 2022.
    ”Establishment of new National Data Protection Bureau, which is expected to develop “primary legislation for data protection and privacy.”
    ”Launch of new “National Digital Economy Policy and Strategy”, by President Buhari in 2019.
    ‘ ‘Drafting of the Nigeria Startup Bill (NSB), and submission of the draft Bill to the National Assembly for consideration and passage into law.
    – Establishment, in 2021, of a National Centre for Artificial Intelligence and Robotics (NCAIR).
    ”Ongoing implementation, starting 2021, of the National Information and Communication Technology Infrastructure Backbone Phase 2 (NICTIB-2) Project.
    ”The goal of NICTIB is to rollout a nationwide fibre infrastructure network.
    ”Ongoing construction of a Tier-4 Data Center in Kano, to join existing infrastructure in Abuja (Tier-3 Data Center) and Enugu (A Disaster Recovery Site). The Kano Data Center is expected to be completed in 2022.”
    The major achievements of the Buhari administration in the area of oil and gas include Buhari’s assent to the Petroleum Industry Act on Aug, 16, 2021.
    This, broke a two-decades-old jinx and is setting the stage for the unprecedented transformation of Nigeria’s oil and gas sector.
    Under the new Act, the NNPC has transformed into a Limited Liability Company which will be formally unveiled by the President in July 2022.
    The regulatory framework for the sector has also changed, with the establishment of:
    (a) the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and
    (b) the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which merged the hitherto-existing Petroleum Products Pricing Regulatory Agency (PPPRA), Petroleum Equalization Fund (Management) Board(PEFMB), and the Midstream and Downstream Divisions of the Department of Petroleum Resources (DPR).
    The historic Signing Ceremony, in May 2021, of the Execution of Oil Mining Lease (OML) 118 Agreements between NNPC Limited and its Contractor Partners: Shell, Exxon Mobil, TOTAL and NAOC.
    These Agreements settled long-standing disputes that stalled development, and will unlock more than $10 billion of new deep-water investment in Nigeria.
    The Buhari administration has declared this decade the “Decade of Gas.”
    The Federal Government has embarked on the construction of 614km Ajaokuta-Kaduna-Kano Gas Project, the largest domestic gas project in the country.
    Already, the government has secured US$45 million financing from the Islamic Development Bank, for the Front-End Engineering Design (FEED) Study for the Nigeria–Morocco Gas Pipeline (NMGP) project.
    The Agreement for the Pipeline project was signed by the two countries during President Buhari’s State Visit to Morocco in June 2018.
    When completed it will be the longest offshore pipeline in the world, and the second longest pipeline in the world, running across 13 countries, 11 of them in West Africa.
    It’s believed that the successful completion of Nigeria’s first Marginal Field Bid Round in almost 20 years, is expected to raise in excess of half a billion dollars, and open up a new vista of investment in oil and gas.
    ”Launch of National LPG Expansion Programme (including Removal of VAT from the domestic pricing of LPG)
    ”Financial close and signing of contract for NLNG Train 7, which will grow Nigeria’s LNG production capacity by 35 per cent.
    ”Nigeria and Morocco in 2021 signed an agreement to develop a US$1.4 billion multipurpose industrial platform (Ammonia and Di-Ammonium Phosphate production plants) that will utilize Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025.
    ”It will be located in Ikot-Abasi, Akwa-Ibom State.”
    The nation also witnessed the inauguration, in Dec. 2020, of the new NPDC Integrated Gas Handling Facility in Edo, the largest onshore LPG plant in the country, with a processing capacity of 100 million standard cubic feet of gas daily, producing 330 tonnes of LPG, 345 tonnes of propane and 2,600 barrels of condensate, daily.
    The government also established a $350m Nigerian Content Intervention Fund, to finance manufacturing, contracts and assets in the oil and gas industry.
    ”The NNPC Limited’s National Petroleum Investment Management Services (NAPIMS) became, in 2022, the first Government organization in West and North Africa to receive the ISO 22301:2019 Certification for Business Continuity Management from RINA.”
    On the financing and investment in the oil and gas, Afreximbank announced in Jan. 2022 that it will assist NNPC Limited to raise $5 billion financing to support investments in Nigeria’s upstream industry, and facilitate expanded energy supply.
    Afrexim also disclosed plans to underwrite $1 billion of the total planned debt.
    ”Final Investment Decision in January 2021 on a 10,000 tonnes per day methanol plant and a 500 million standard cubic feet per day gas processing plant, being promoted by the NNPC Limited and the Nigerian Content Development and Monitoring Board (NCDMB), in partnership with the private sector.
    ”The plant is now under construction in Odeama, Brass, Bayelsa State.
    On Policy, Regulatory and Funding Support for the establishment of Modular Refineries across the Niger Delta, the Buhari administration has issued licences for six additional brownfield and greenfield Modular Refinery Projects across the Niger Delta.
    In 2020 President Buhari inaugurated the first phase of the Waltersmith Modular Refinery, in Imo State, and broke ground on Phase 2, which will add 20,000bpd processing capacity.
    The Nigerian National Petroleum Corporation (NNPC), on Dec. 21, 2021, handed over a symbolic cheque of N621.24 Billion for the rehabilitation of 21 critical roads (totalling 1,800km) across the country, through the Road Infrastructure Tax Credit Scheme under the Executive Order 7 signed by President Buhari in 2019.
    ”Note that this does not mean that NNPC has gone into the business of constructing roads; instead it is financing the construction of roads, through its tax liabilities.”
    It’s also hoped that the launch of the Nigerian Upstream Cost Optimization Programme (NUCOP), would reduce operating expenses through process enhancement and industry collaboration as the overall target is to achieve a $10 or less per barrel production cost.

    (NAN)

  •   Address stable electricity supply as a panacea for national development A News Analysis Nigeria News Agency Upon assuming power one of Buhari s promises was to improve the power sector to ensure economic stability Since then improving Nigerians access to electricity has remained a key focus of the Buhari administration s agenda to ensure Nigerians have access to a constant power supply Energy Minister Mr Abubakar Aliyu speaking recently in Abuja said that the current government had initiated some transformative changes that would improve access and quality of electricity in Nigeria in the long term I can confidently tell you that with the efforts we have made and continue to make we are at the dawn of a new era in Nigeria s energy sector A significant effort that the Muhammadu Buhari Administration has made is the agreement between Siemens Nigeria and the Federal Government under the Presidential Power Initiative PPI The minister said the partnership between Siemens and the Federal Government seeks to expand Nigeria s electricity capacity from the current 4 500 megawatts MW to 25 000 MW Aliyu said that the PPI that started in 2021 is in three phases and is estimated to be completed in 2025 He said the phases cover the upgrade and expansion of the networks of the Transmission Company of Nigeria TCN and the Electricity Distribution Companies Discos Improve access to affordable efficient and reliable electricity and support the industrial and economic growth of the country This first phase that began in 2021 will last for a period of 10 months with the ultimate goal of bringing it to 7 000MW So far there have been no problems as the team is currently in the pre engineering phase The second phase will raise availability to 11 000MW and the third phase will raise availability to 25 000MW The minister also explained that the government was currently evaluating the procurement process and was confident that a positive outcome would emerge and said the project had reached an advanced stage in line with Siemens project implementation plan Given Siemens AG s achievement of a similar plan in Egypt and also its reputation as an international giant in commitments related to the energy sector it is strongly believed that the Nigerian Electricity Roadmap NER is possible and achievable However he argued that sustainable growth in the energy sector could only be achieved with energy mix sources noting that today 80 percent of Nigeria s energy comes from gas plants The government is pushing for change to increase the amount of renewable energy sources that use solar wind and hydro power across the country We are promoting investments in renewable sources in areas with comparative advantages Today for example 80 percent of our energy comes from gas plants We are promoting investments in renewable sources in areas with comparative advantages We are working tirelessly to increase hydroelectric and solar opportunities in the country in accordance with the plan to integrate more renewable sources into our energy mix he said According to him Mambilla is planned to deliver 3 050 megawatts MW Kashimbila is planned to deliver 40MW Dadinkowa is also planned to deliver 40MW Zungeru is planned to deliver another 700MW and the Katsina wind farm is planned to deliver 10MW It is noteworthy that we are now going to make significant progress with the Mambilla Hydro plant as the issues impeding progress are being seriously discussed Mini grids are a unique solution model that will increase the penetration of renewable energy in Nigeria This is why we are developing mini grids in our Ministry Departments and Agencies MDA in Nigeria Aliyu said that the Ministry of Works and Housing has taken the initiative to complete a pilot test of 1 5MW of solar energy We hope to replicate this model in all of our MDAs The government is doing a lot to provide the necessary infrastructure and is also supported by the World Bank the African Development Bank AfDB AFB and others These support structures plus the CBN intervention fund will go a long way toward addressing some of these infrastructure gaps Proper implementation of all planned and ongoing projects will also increase the availability and quality of electricity To achieve the desired quick wins the federal government launched the Power Sector Reform Plan PSRP to strengthen the Regulatory Agency NERC a Performance Improvement Plan PIP duly monitored to track the progress of the Distribution Companies and a Transmission Rehabilitation and Expansion Program TREP to strengthen TCN s transmission capacity These efforts are geared towards ensuring that the wishes and desires of Nigerians are met when it comes to a stable and reliable power supply For his part the Minister of State for Energy Goddy Jeddy Agba said that the Government will continue to create an enabling environment for private investors to prosper in the energy sector We understand that the government cannot do everything so we have opened our eyes for more people to invest in the sector The world is already moving from fossil energy production and consumption to renewable energy and Nigeria is playing a leading role in the global market Our message to investors is that renewable energy is the present and the future Therefore we encourage more Nigerians to enter this area We are not just looking at foreign investors We want our local investors to also embrace the renewable energy sector Jeddy Agba assured all investors and potential investors that the Federal Government will continue to create favorable policies and a business friendly environment for their investments to prosper If used credit the author and Nigerian News Agency Source NAN
    Addressing stable power supply as panacea to national development
      Address stable electricity supply as a panacea for national development A News Analysis Nigeria News Agency Upon assuming power one of Buhari s promises was to improve the power sector to ensure economic stability Since then improving Nigerians access to electricity has remained a key focus of the Buhari administration s agenda to ensure Nigerians have access to a constant power supply Energy Minister Mr Abubakar Aliyu speaking recently in Abuja said that the current government had initiated some transformative changes that would improve access and quality of electricity in Nigeria in the long term I can confidently tell you that with the efforts we have made and continue to make we are at the dawn of a new era in Nigeria s energy sector A significant effort that the Muhammadu Buhari Administration has made is the agreement between Siemens Nigeria and the Federal Government under the Presidential Power Initiative PPI The minister said the partnership between Siemens and the Federal Government seeks to expand Nigeria s electricity capacity from the current 4 500 megawatts MW to 25 000 MW Aliyu said that the PPI that started in 2021 is in three phases and is estimated to be completed in 2025 He said the phases cover the upgrade and expansion of the networks of the Transmission Company of Nigeria TCN and the Electricity Distribution Companies Discos Improve access to affordable efficient and reliable electricity and support the industrial and economic growth of the country This first phase that began in 2021 will last for a period of 10 months with the ultimate goal of bringing it to 7 000MW So far there have been no problems as the team is currently in the pre engineering phase The second phase will raise availability to 11 000MW and the third phase will raise availability to 25 000MW The minister also explained that the government was currently evaluating the procurement process and was confident that a positive outcome would emerge and said the project had reached an advanced stage in line with Siemens project implementation plan Given Siemens AG s achievement of a similar plan in Egypt and also its reputation as an international giant in commitments related to the energy sector it is strongly believed that the Nigerian Electricity Roadmap NER is possible and achievable However he argued that sustainable growth in the energy sector could only be achieved with energy mix sources noting that today 80 percent of Nigeria s energy comes from gas plants The government is pushing for change to increase the amount of renewable energy sources that use solar wind and hydro power across the country We are promoting investments in renewable sources in areas with comparative advantages Today for example 80 percent of our energy comes from gas plants We are promoting investments in renewable sources in areas with comparative advantages We are working tirelessly to increase hydroelectric and solar opportunities in the country in accordance with the plan to integrate more renewable sources into our energy mix he said According to him Mambilla is planned to deliver 3 050 megawatts MW Kashimbila is planned to deliver 40MW Dadinkowa is also planned to deliver 40MW Zungeru is planned to deliver another 700MW and the Katsina wind farm is planned to deliver 10MW It is noteworthy that we are now going to make significant progress with the Mambilla Hydro plant as the issues impeding progress are being seriously discussed Mini grids are a unique solution model that will increase the penetration of renewable energy in Nigeria This is why we are developing mini grids in our Ministry Departments and Agencies MDA in Nigeria Aliyu said that the Ministry of Works and Housing has taken the initiative to complete a pilot test of 1 5MW of solar energy We hope to replicate this model in all of our MDAs The government is doing a lot to provide the necessary infrastructure and is also supported by the World Bank the African Development Bank AfDB AFB and others These support structures plus the CBN intervention fund will go a long way toward addressing some of these infrastructure gaps Proper implementation of all planned and ongoing projects will also increase the availability and quality of electricity To achieve the desired quick wins the federal government launched the Power Sector Reform Plan PSRP to strengthen the Regulatory Agency NERC a Performance Improvement Plan PIP duly monitored to track the progress of the Distribution Companies and a Transmission Rehabilitation and Expansion Program TREP to strengthen TCN s transmission capacity These efforts are geared towards ensuring that the wishes and desires of Nigerians are met when it comes to a stable and reliable power supply For his part the Minister of State for Energy Goddy Jeddy Agba said that the Government will continue to create an enabling environment for private investors to prosper in the energy sector We understand that the government cannot do everything so we have opened our eyes for more people to invest in the sector The world is already moving from fossil energy production and consumption to renewable energy and Nigeria is playing a leading role in the global market Our message to investors is that renewable energy is the present and the future Therefore we encourage more Nigerians to enter this area We are not just looking at foreign investors We want our local investors to also embrace the renewable energy sector Jeddy Agba assured all investors and potential investors that the Federal Government will continue to create favorable policies and a business friendly environment for their investments to prosper If used credit the author and Nigerian News Agency Source NAN
    Addressing stable power supply as panacea to national development
    General news9 months ago

    Addressing stable power supply as panacea to national development

    Address stable electricity supply as a panacea for national development

    A News Analysis, Nigeria News Agency

    Upon assuming power, one of Buhari's promises was to improve the power sector to ensure economic stability. Since then, improving Nigerians' access to electricity has remained a key focus of the Buhari administration's agenda to ensure Nigerians have access to a constant power supply.

    Energy Minister Mr. Abubakar Aliyu, speaking recently in Abuja, said that the current government had initiated some transformative changes that would improve access and quality of electricity in Nigeria in the long term.

    “I can confidently tell you that with the efforts we have made and continue to make, we are at the dawn of a new era in Nigeria's energy sector.

    “A significant effort that the Muhammadu Buhari Administration has made is the agreement between Siemens Nigeria and the Federal Government under the Presidential Power Initiative (PPI).

    The minister said the partnership between Siemens and the Federal Government seeks to expand Nigeria's electricity capacity from the current 4,500 megawatts (MW) to 25,000 MW.

    Aliyu said that the PPI that started in 2021 is in three phases and is estimated to be completed in 2025.

    He said the phases cover the upgrade and expansion of the networks of the Transmission Company of Nigeria (TCN) and the Electricity Distribution Companies (Discos).

    “Improve access to affordable, efficient and reliable electricity and support the industrial and economic growth of the country.

    “This first phase that began in 2021 will last for a period of 10 months with the ultimate goal of bringing it to 7,000MW.

    “So far, there have been no problems as the team is currently in the pre-engineering phase. The second phase will raise availability to 11,000MW and the third phase will raise availability to 25,000MW.

    The minister also explained that the government was currently evaluating the procurement process and was confident that a positive outcome would emerge, and said the project had reached an advanced stage in line with Siemens' project implementation plan.

    “Given Siemens AG's achievement of a similar plan in Egypt and also its reputation as an international giant in commitments related to the energy sector, it is strongly believed that the Nigerian Electricity Roadmap (NER) is possible. and achievable.

    However, he argued that sustainable growth in the energy sector could only be achieved with energy mix sources, noting that today, 80 percent of Nigeria's energy comes from gas plants.

    “The government is pushing for change to increase the amount of renewable energy sources that use solar, wind and hydro power across the country. We are promoting investments in renewable sources in areas with comparative advantages.

    “Today, for example, 80 percent of our energy comes from gas plants. We are promoting investments in renewable sources in areas with comparative advantages.

    "We are working tirelessly to increase hydroelectric and solar opportunities in the country in accordance with the plan to integrate more renewable sources into our energy mix," he said.

    According to him, Mambilla is planned to deliver 3,050 megawatts (MW), Kashimbila is planned to deliver 40MW, Dadinkowa is also planned to deliver 40MW, Zungeru is planned to deliver another 700MW and the Katsina wind farm is planned to deliver 10MW.

    “It is noteworthy that we are now going to make significant progress with the Mambilla Hydro plant as the issues impeding progress are being seriously discussed.

    Mini-grids are a unique solution model that will increase the penetration of renewable energy in Nigeria.

    “This is why we are developing mini-grids in our Ministry, Departments and Agencies (MDA) in Nigeria.

    Aliyu said that the Ministry of Works and Housing has taken the initiative to complete a pilot test of 1.5MW of solar energy. We hope to replicate this model in all of our MDAs.

    The government is doing a lot to provide the necessary infrastructure and is also supported by the World Bank, the African Development Bank (AfDB), AFB and others.

    These support structures, plus the CBN intervention fund, will go a long way toward addressing some of these infrastructure gaps. Proper implementation of all planned and ongoing projects will also increase the availability and quality of electricity.

    To achieve the desired quick wins, the federal government launched the Power Sector Reform Plan (PSRP) to strengthen the Regulatory Agency, NERC; a Performance Improvement Plan (PIP) duly monitored to track the progress of the Distribution Companies and a Transmission Rehabilitation and Expansion Program (TREP) to strengthen TCN's transmission capacity.

    These efforts are geared towards ensuring that the wishes and desires of Nigerians are met when it comes to a stable and reliable power supply.

    For his part, the Minister of State for Energy, Goddy Jeddy-Agba, said that the Government will continue to create an enabling environment for private investors to prosper in the energy sector.

    “We understand that the government cannot do everything, so we have opened our eyes for more people to invest in the sector.

    “The world is already moving from fossil energy production and consumption to renewable energy and Nigeria is playing a leading role in the global market.

    “Our message to investors is that renewable energy is the present and the future. Therefore, we encourage more Nigerians to enter this area. We are not just looking at foreign investors. We want our local investors to also embrace the renewable energy sector ”.

    Jeddy-Agba assured all investors and potential investors that the Federal Government will continue to create favorable policies and a business-friendly environment for their investments to prosper.

    *** If used, credit the author and Nigerian News Agency

    Source: NAN

  •   The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible PRETORIA South Africa December 14 2021 APO Group Pricing of projects under the Risk Mitigation Independent Power Producer Procurement Program RMIPPPP The Department of Mineral Resources and Energy DMRE has noticed inaccurate media reports on the prices of projects designated as Preferred Bidders under the Risk Mitigation Independent Power Producer Procurement Program RMIPPPP in recent weeks Certain media outlets and journalists including AmaBhungane appear to misinterpret the basis for the evaluation of all bidders under the RMIPPPP including the payment mechanism underlying the Power Purchase Agreement PPA which was set out in the Request for Proposals RFP The issues of effective fees and take or pay concessions specifically raised by AmaBhungane have been clarified above and are also clearly addressed in the Department s factual summary of the RMIPPPP Risk Mitigation IPP Program in Context which can be found at https www ipp rm co za link is external The concept of take or pay is a global standard in any commercial contract where there is an obligation on the part of the power plant to supply when there is a dispatch instruction from the system operator This is not new in South Africa and in fact all PPI programs purchased to date have followed a similar payment mechanism including wind or solar energy projects The rate is a comprehensive rate in which the IPP assumes all risks associated with availability and performance There is no guaranteed payment under RMIPPPP Eskom has made a minimum load commitment and will only pay for actual power production if it is delivered in response to a shipping instruction from the system operator The evaluation price used to classify the bidders was established on the base date of April 2020 and was calculated as a weighted average price composed of 95 for the price of capacity and energy production and 5 for the price of auxiliary services This was done for the purpose of comparing offers fairly Actual payments to Sellers IPP by Buyer Eskom may differ depending on the System Operator s shipping instructions for the specific service provided For example an IPP will only charge Eskom for additional ancillary services or energy based on what the system operator requires Eskom is not required to purchase the ancillary services but for evaluation purposes the contractor required each bidder to assume that 5 of the ancillary services price is an input in the evaluation price to ensure fairness In response to the Request for Proposals RFP Bidders submitted Charge Rates that include fixed and variable components including Capital cost recovery rate Fixed rate of operating and maintenance costs Fuel charge rate applicable to projects that use diesel or gas Variable operational cost rate and Rates for the provision of mandatory auxiliary services specified by the System Operator Preferred Bidders submitted these Charge Rates at the Bidding Stage at the April 2020 base rate to NERSA as part of their license application The payment mechanism in the PPA allows Eskom to compensate the IPP for Available Capacity energy production and ancillary services The energy payment will be based on the Fuel Charge Rate if applicable and the Variable Cost Charge Rate based on the actual energy production delivered Both fuel and non fuel projects can only recoup variable rates if they are shipped In terms of the wind or solar energy PPA of the IPP Renewable Energy Program there is no capacity charge but Eskom is required to pay for all energy delivered to the grid Therefore a capacity charge is not required The RMIPPPP has a capacity charge to ensure that the dispatchable generation plant maintains the capacity contracted under the PPA If capacity is unavailable during a period Eskom does not pay IPP for capacity that is unavailable to operate during that period It is also critical to understand that IPPs under the RMIPPPP must provide capacity ancillary services and power to the buyer whereas a typical wind or solar project only provides power As noted above the pricing mechanism in the PPA for the RMIPPPP allows the IPP to recoup the cost associated with all of these services if the service is available Therefore it is incorrect to assume that the IPPs under RMIPPPP will have guaranteed income since the IPPs are required to be available and able to generate according to the instructions of the system operator to receive the capacity payment and the energy payment respectively The minimum load commitment made by Eskom is necessary as the plant will be shipped at the discretion of the system operator and therefore IPP needs some degree of certainty to be shipped in order to have a viable business case The Minimum Load Commitment that the Buyer must achieve in any contract year from the Commercial Operation Date is equal to 72 727 of the sum of the Net Available Capacity MW measured for each hour during the dispatchable period of that particular year The difference if any between the minimum load commitment and the actual shipping instructions will be reconciled monthly and paid annually based on the annual accumulated difference This means that if for example at the end of the year the plant was shipped above the minimum load commitment for the year there will be no payment This is normal practice for contracting dispatchable power plants It is important that the buyer indicates the Minimum Load Commitment in the RFP to ensure that each bidder sets the price of their offer in accordance with the required commitment The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible The RMIPPPP bidding window was launched on the market in August 2020 following the promulgation of the 2000MW Ministerial Determination with the consent of NERSA The main objective of the bidding window is to help close the immediate supply gap indicated in the Integrated Resource Plan IRP2019 and reduce the extensive use of expensive diesel based peak electric generators in the medium and long term The 11 preferred bidder projects totaling 1 995 76 MW offer a mix of technologies and facilities in the same geographic location or in different locations in South Africa
    Mineral Resources and Energy on pricing of projects under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP)
      The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible PRETORIA South Africa December 14 2021 APO Group Pricing of projects under the Risk Mitigation Independent Power Producer Procurement Program RMIPPPP The Department of Mineral Resources and Energy DMRE has noticed inaccurate media reports on the prices of projects designated as Preferred Bidders under the Risk Mitigation Independent Power Producer Procurement Program RMIPPPP in recent weeks Certain media outlets and journalists including AmaBhungane appear to misinterpret the basis for the evaluation of all bidders under the RMIPPPP including the payment mechanism underlying the Power Purchase Agreement PPA which was set out in the Request for Proposals RFP The issues of effective fees and take or pay concessions specifically raised by AmaBhungane have been clarified above and are also clearly addressed in the Department s factual summary of the RMIPPPP Risk Mitigation IPP Program in Context which can be found at https www ipp rm co za link is external The concept of take or pay is a global standard in any commercial contract where there is an obligation on the part of the power plant to supply when there is a dispatch instruction from the system operator This is not new in South Africa and in fact all PPI programs purchased to date have followed a similar payment mechanism including wind or solar energy projects The rate is a comprehensive rate in which the IPP assumes all risks associated with availability and performance There is no guaranteed payment under RMIPPPP Eskom has made a minimum load commitment and will only pay for actual power production if it is delivered in response to a shipping instruction from the system operator The evaluation price used to classify the bidders was established on the base date of April 2020 and was calculated as a weighted average price composed of 95 for the price of capacity and energy production and 5 for the price of auxiliary services This was done for the purpose of comparing offers fairly Actual payments to Sellers IPP by Buyer Eskom may differ depending on the System Operator s shipping instructions for the specific service provided For example an IPP will only charge Eskom for additional ancillary services or energy based on what the system operator requires Eskom is not required to purchase the ancillary services but for evaluation purposes the contractor required each bidder to assume that 5 of the ancillary services price is an input in the evaluation price to ensure fairness In response to the Request for Proposals RFP Bidders submitted Charge Rates that include fixed and variable components including Capital cost recovery rate Fixed rate of operating and maintenance costs Fuel charge rate applicable to projects that use diesel or gas Variable operational cost rate and Rates for the provision of mandatory auxiliary services specified by the System Operator Preferred Bidders submitted these Charge Rates at the Bidding Stage at the April 2020 base rate to NERSA as part of their license application The payment mechanism in the PPA allows Eskom to compensate the IPP for Available Capacity energy production and ancillary services The energy payment will be based on the Fuel Charge Rate if applicable and the Variable Cost Charge Rate based on the actual energy production delivered Both fuel and non fuel projects can only recoup variable rates if they are shipped In terms of the wind or solar energy PPA of the IPP Renewable Energy Program there is no capacity charge but Eskom is required to pay for all energy delivered to the grid Therefore a capacity charge is not required The RMIPPPP has a capacity charge to ensure that the dispatchable generation plant maintains the capacity contracted under the PPA If capacity is unavailable during a period Eskom does not pay IPP for capacity that is unavailable to operate during that period It is also critical to understand that IPPs under the RMIPPPP must provide capacity ancillary services and power to the buyer whereas a typical wind or solar project only provides power As noted above the pricing mechanism in the PPA for the RMIPPPP allows the IPP to recoup the cost associated with all of these services if the service is available Therefore it is incorrect to assume that the IPPs under RMIPPPP will have guaranteed income since the IPPs are required to be available and able to generate according to the instructions of the system operator to receive the capacity payment and the energy payment respectively The minimum load commitment made by Eskom is necessary as the plant will be shipped at the discretion of the system operator and therefore IPP needs some degree of certainty to be shipped in order to have a viable business case The Minimum Load Commitment that the Buyer must achieve in any contract year from the Commercial Operation Date is equal to 72 727 of the sum of the Net Available Capacity MW measured for each hour during the dispatchable period of that particular year The difference if any between the minimum load commitment and the actual shipping instructions will be reconciled monthly and paid annually based on the annual accumulated difference This means that if for example at the end of the year the plant was shipped above the minimum load commitment for the year there will be no payment This is normal practice for contracting dispatchable power plants It is important that the buyer indicates the Minimum Load Commitment in the RFP to ensure that each bidder sets the price of their offer in accordance with the required commitment The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible The RMIPPPP bidding window was launched on the market in August 2020 following the promulgation of the 2000MW Ministerial Determination with the consent of NERSA The main objective of the bidding window is to help close the immediate supply gap indicated in the Integrated Resource Plan IRP2019 and reduce the extensive use of expensive diesel based peak electric generators in the medium and long term The 11 preferred bidder projects totaling 1 995 76 MW offer a mix of technologies and facilities in the same geographic location or in different locations in South Africa
    Mineral Resources and Energy on pricing of projects under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP)
    Africa10 months ago

    Mineral Resources and Energy on pricing of projects under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP)

    The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible.

    PRETORIA, South Africa, December 14, 2021 / APO Group / -

    Pricing of projects under the Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP)

    The Department of Mineral Resources and Energy (DMRE) has noticed inaccurate media reports on the prices of projects designated as Preferred Bidders under the Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP) in recent weeks.

    Certain media outlets and journalists, including AmaBhungane, appear to misinterpret the basis for the evaluation of all bidders under the RMIPPPP, including the payment mechanism underlying the Power Purchase Agreement (PPA), which was set out in the Request for Proposals ( RFP). The issues of effective fees and take-or-pay concessions specifically raised by AmaBhungane have been clarified above and are also clearly addressed in the Department's factual summary of the RMIPPPP (Risk Mitigation IPP Program in Context which can be found at https: / / www. .ipp-rm.co.za / (link is external).)

    The concept of "take or pay" is a global standard in any commercial contract where there is an obligation on the part of the power plant to supply when there is a dispatch instruction from the system operator. This is not new in South Africa and in fact all PPI programs purchased to date have followed a similar payment mechanism, including wind or solar energy projects.

    The rate is a comprehensive rate in which the IPP assumes all risks associated with availability and performance. There is no guaranteed payment under RMIPPPP. Eskom has made a minimum load commitment and will only pay for actual power production if it is delivered in response to a shipping instruction from the system operator.

    The evaluation price used to classify the bidders was established on the base date of April 2020 and was calculated as a weighted average price composed of 95% for the price of capacity and energy production and 5% for the price of auxiliary services. This was done for the purpose of comparing offers fairly.

    Actual payments to Sellers (IPP) by Buyer (Eskom) may differ depending on the System Operator's shipping instructions for the specific service provided. For example, an IPP will only charge Eskom for additional ancillary services or energy based on what the system operator requires.

    Eskom is not required to purchase the ancillary services, but for evaluation purposes, the contractor required each bidder to assume that 5% of the ancillary services price is an input in the evaluation price to ensure fairness.

    In response to the Request for Proposals (RFP), Bidders submitted Charge Rates that include fixed and variable components, including:

    Capital cost recovery rate; Fixed rate of operating and maintenance costs; Fuel charge rate: applicable to projects that use diesel or gas; Variable operational cost rate; and Rates for the provision of mandatory auxiliary services specified by the System Operator.

    Preferred Bidders submitted these Charge Rates at the Bidding Stage (at the April 2020 base rate) to NERSA as part of their license application.

    The payment mechanism in the PPA allows Eskom to compensate the IPP for Available Capacity, energy production and ancillary services. The energy payment will be based on the Fuel Charge Rate, if applicable, and the Variable Cost Charge Rate, based on the actual energy production delivered. Both fuel and non-fuel projects can only recoup variable rates if they are shipped.

    In terms of the wind or solar energy PPA of the IPP Renewable Energy Program, there is no capacity charge, but Eskom is required to pay for all energy delivered to the grid. Therefore, a capacity charge is not required. The RMIPPPP has a capacity charge to ensure that the dispatchable generation plant maintains the capacity contracted under the PPA. If capacity is unavailable during a period, Eskom does not pay IPP for capacity that is unavailable to operate during that period.

    It is also critical to understand that IPPs under the RMIPPPP must provide capacity, ancillary services, and power to the buyer, whereas a typical wind or solar project only provides power. As noted above, the pricing mechanism in the PPA for the RMIPPPP allows the IPP to recoup the cost associated with all of these services if the service is available.

    Therefore, it is incorrect to assume that the IPPs under RMIPPPP will have guaranteed income, since the IPPs are required to be available and able to generate according to the instructions of the system operator, to receive the capacity payment and the energy payment, respectively.

    The minimum load commitment made by Eskom is necessary as the plant will be shipped at the discretion of the system operator and therefore IPP needs some degree of certainty to be shipped in order to have a viable business case. The Minimum Load Commitment that the Buyer must achieve in any contract year, from the Commercial Operation Date, is equal to 72.727% of the sum of the Net Available Capacity (MW), measured for each hour during the dispatchable period. of that particular. year.

    The difference, if any, between the minimum load commitment and the actual shipping instructions will be reconciled monthly and paid annually based on the annual accumulated difference. This means that if, for example, at the end of the year the plant was shipped above the minimum load commitment for the year, there will be no payment. This is normal practice for contracting dispatchable power plants.

    It is important that the buyer indicates the Minimum Load Commitment in the RFP to ensure that each bidder sets the price of their offer in accordance with the required commitment.

    The Department remains committed to ensuring the completion of the RMIPPPP procurement process to ensure that additional power is brought online in the shortest time possible.

    The RMIPPPP bidding window was launched on the market in August 2020, following the promulgation of the 2000MW Ministerial Determination, with the consent of NERSA.

    The main objective of the bidding window is to help close the immediate supply gap indicated in the Integrated Resource Plan (IRP2019) and reduce the extensive use of expensive diesel-based peak electric generators in the medium and long term.

    The 11 preferred bidder projects, totaling 1,995.76 MW, offer a mix of technologies and facilities in the same geographic location or in different locations in South Africa.

  •   Oyo State Governor Seyi Makinde has kicked off construction of an 11 megawatt hybrid power solution in an attempt to address the instability of the power supply in the state Mr Makinde while holding the ceremony within the Secretariat of State Complex in Ibadan said that the project would be executed by Elektron Energy within six to eight months at a cost of N8 27 billion According to him the contractor will build execute and transfer the project then the state government will reimburse Elektron Energy s capital investment over a period of 10 years And within this period the energy company will operate and manage the infrastructure said the governor Makinde described the project as a correct step taken by his administration to tackle the electricity problem He said Nigeria had been unable to generate and distribute enough power to provide 24 7 power to its citizens Over time capable people have bought different sizes of diesel gasoline generators or invested in solar energy as alternative energy sources he said On issues related to the distribution of energy in the country the governor explained that some people believed that only the Federal Government has the power to distribute energy So any power generated at the state or local level must be fed into national greed before it can be distributed this is partially true Under the Electric Power Sector Reform Laws of 2005 independent power distribution is allowed with respect to distribution licenses Section 67 1 establishes that subject to such terms and conditions as determined by the commission a distribution license will authorize the licensee to build operate and maintain a distribution system and facilities he said The governor said that it was on the basis of these laws that his government signed a contract with Elektron Energy to finance and develop the 11 megawatt Hybrid Power Solution for the state government Mr Makinde added that the company Elektron Energy would use Ibadan Hybrid Power Limited Hypower as the special purpose vehicle to perform the contract He hinted that Hypower would be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited which will have an independent electricity distribution network Highlighting some of the areas that would benefit from the project upon completion Makinde said that the Secretary of State where the project would be located would be the first beneficiary along with government facilities within the Secretariat In addition the Lekan Salami Sports Complex Adamasingba opened in September would benefit from the PPI when completed Others are 12 health care centers including Adeoyo Maternity Teaching Hospital and State Hospital Ring Road in Ibadan This IPP will also feed a radius of no less than 10 kilometers of public lighting under the Light Up Oyo project In addition it will cover the energy needs of the two court complexes at Iyanganku and Ring Road in Ibadan Additionally the Oyo State House of Assembly and a selection of schools within a defined watershed of the secretary of state s generating plant will benefit the governor said Furthermore he hinted that his government was already thinking of incorporating a similar project into his administration s vision to facilitate the expansion of the state economic base by making power available to industrial catchment areas In his opening remarks State Energy and Natural Resources Commissioner Seun Ashamu said the project was part of the Makinde administration s initiative to provide infrastructure for the state s economic growth Mr Ashamu described infrastructure as the basis of social development and essential to induce economic development Unfortunately in Nigeria today we have an installed generation capacity of around 13 000 megawatts with an average disposed of around 4 000 megawatts But we only distribute between 3 500 and 4 000 megawatts which is further reduced by technical losses in the distribution infrastructure Therefore a project like this IPP will ensure the sustainability of what we are doing in the state since we will be able to guarantee electricity 24 hours a day he said The commissioner assured the people of the state that the 11 megawatt hybrid gas solar plant when completed and inaugurated will result in improved productivity of government personnel and long term cost savings among other benefits Commenting Tola Talabi the Managing Director of Elektron Energy said that his company Elektron Energy was in a unique position to deliver the project to the people of the state in six months Mr Talabi said the power plant when completed will boost productivity development employment and services for the government and people of Oyo State He said it would be a catalyst to show that a stand alone power project could viable commercially operate in the state This hybrid power solution is comprised of 10 megawatts of gas engines and one megawatt of solar power said Talabi He said the hybrid power project has significant benefits for the people of the state including reducing costs and pollution boosting productivity among others Some of the government officials present were the Lieutenant Governor Rauf Olaniyan the Secretary of State Government Olubamiwo Adeosun some commissioners and CEOs of local governments In addition some traditional rulers Aseyin de Iseyin AbdulGaniyu Adekunle and Okere de Saki Oba Khalid Olabisi witnessed the opening ceremony YAYA
    Oyo Govt begins construction of N8.27bn independent power project
      Oyo State Governor Seyi Makinde has kicked off construction of an 11 megawatt hybrid power solution in an attempt to address the instability of the power supply in the state Mr Makinde while holding the ceremony within the Secretariat of State Complex in Ibadan said that the project would be executed by Elektron Energy within six to eight months at a cost of N8 27 billion According to him the contractor will build execute and transfer the project then the state government will reimburse Elektron Energy s capital investment over a period of 10 years And within this period the energy company will operate and manage the infrastructure said the governor Makinde described the project as a correct step taken by his administration to tackle the electricity problem He said Nigeria had been unable to generate and distribute enough power to provide 24 7 power to its citizens Over time capable people have bought different sizes of diesel gasoline generators or invested in solar energy as alternative energy sources he said On issues related to the distribution of energy in the country the governor explained that some people believed that only the Federal Government has the power to distribute energy So any power generated at the state or local level must be fed into national greed before it can be distributed this is partially true Under the Electric Power Sector Reform Laws of 2005 independent power distribution is allowed with respect to distribution licenses Section 67 1 establishes that subject to such terms and conditions as determined by the commission a distribution license will authorize the licensee to build operate and maintain a distribution system and facilities he said The governor said that it was on the basis of these laws that his government signed a contract with Elektron Energy to finance and develop the 11 megawatt Hybrid Power Solution for the state government Mr Makinde added that the company Elektron Energy would use Ibadan Hybrid Power Limited Hypower as the special purpose vehicle to perform the contract He hinted that Hypower would be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited which will have an independent electricity distribution network Highlighting some of the areas that would benefit from the project upon completion Makinde said that the Secretary of State where the project would be located would be the first beneficiary along with government facilities within the Secretariat In addition the Lekan Salami Sports Complex Adamasingba opened in September would benefit from the PPI when completed Others are 12 health care centers including Adeoyo Maternity Teaching Hospital and State Hospital Ring Road in Ibadan This IPP will also feed a radius of no less than 10 kilometers of public lighting under the Light Up Oyo project In addition it will cover the energy needs of the two court complexes at Iyanganku and Ring Road in Ibadan Additionally the Oyo State House of Assembly and a selection of schools within a defined watershed of the secretary of state s generating plant will benefit the governor said Furthermore he hinted that his government was already thinking of incorporating a similar project into his administration s vision to facilitate the expansion of the state economic base by making power available to industrial catchment areas In his opening remarks State Energy and Natural Resources Commissioner Seun Ashamu said the project was part of the Makinde administration s initiative to provide infrastructure for the state s economic growth Mr Ashamu described infrastructure as the basis of social development and essential to induce economic development Unfortunately in Nigeria today we have an installed generation capacity of around 13 000 megawatts with an average disposed of around 4 000 megawatts But we only distribute between 3 500 and 4 000 megawatts which is further reduced by technical losses in the distribution infrastructure Therefore a project like this IPP will ensure the sustainability of what we are doing in the state since we will be able to guarantee electricity 24 hours a day he said The commissioner assured the people of the state that the 11 megawatt hybrid gas solar plant when completed and inaugurated will result in improved productivity of government personnel and long term cost savings among other benefits Commenting Tola Talabi the Managing Director of Elektron Energy said that his company Elektron Energy was in a unique position to deliver the project to the people of the state in six months Mr Talabi said the power plant when completed will boost productivity development employment and services for the government and people of Oyo State He said it would be a catalyst to show that a stand alone power project could viable commercially operate in the state This hybrid power solution is comprised of 10 megawatts of gas engines and one megawatt of solar power said Talabi He said the hybrid power project has significant benefits for the people of the state including reducing costs and pollution boosting productivity among others Some of the government officials present were the Lieutenant Governor Rauf Olaniyan the Secretary of State Government Olubamiwo Adeosun some commissioners and CEOs of local governments In addition some traditional rulers Aseyin de Iseyin AbdulGaniyu Adekunle and Okere de Saki Oba Khalid Olabisi witnessed the opening ceremony YAYA
    Oyo Govt begins construction of N8.27bn independent power project
    Headlines10 months ago

    Oyo Govt begins construction of N8.27bn independent power project

    Oyo State Governor Seyi Makinde has kicked off construction of an 11 megawatt hybrid power solution in an attempt to address the instability of the power supply in the state.

    Mr. Makinde, while holding the ceremony within the Secretariat of State Complex in Ibadan, said that the project would be executed by Elektron Energy within six to eight months at a cost of N8.27 billion.

    According to him, the contractor will build, execute and transfer the project, then the state government will reimburse Elektron Energy's capital investment over a period of 10 years.

    "And within this period, the energy company will operate and manage the infrastructure," said the governor.

    Makinde described the project as a correct step taken by his administration to tackle the electricity problem.

    He said Nigeria had been unable to “generate and distribute enough power to provide 24/7 power to its citizens.

    "Over time, capable people have bought different sizes of diesel / gasoline generators or invested in solar energy as alternative energy sources," he said.

    On issues related to the distribution of energy in the country, the governor explained that some people believed that only the Federal Government has the power to distribute energy.

    “So any power generated at the state or local level must be fed into national greed before it can be distributed, this is partially true.

    “Under the Electric Power Sector Reform Laws of 2005, independent power distribution is allowed, with respect to distribution licenses.

    "Section 67: 1 establishes that subject to such terms and conditions, as determined by the commission, a distribution license will authorize the licensee to build, operate and maintain a distribution system and facilities," he said.

    The governor said that it was on the basis of these laws that his government signed a contract with Elektron Energy to finance and develop the 11 megawatt Hybrid Power Solution for the state government.

    Mr. Makinde added that the company, Elektron Energy, would use Ibadan Hybrid Power Limited, (Hypower) as the special purpose vehicle to perform the contract.

    He hinted that Hypower would be responsible for managing the distribution infrastructure through Ibadan Hybrid Distribution Limited "which will have an independent electricity distribution network."

    Highlighting some of the areas that would benefit from the project upon completion, Makinde said that the Secretary of State where the project would be located would be the first beneficiary along with government facilities within the Secretariat.

    “In addition, the Lekan Salami Sports Complex, Adamasingba, opened in September, would benefit from the PPI when completed.

    “Others are 12 health care centers, including Adeoyo Maternity Teaching Hospital and State Hospital, Ring Road in Ibadan.

    “This IPP will also feed a radius of no less than 10 kilometers of public lighting under the Light Up Oyo project.

    “In addition, it will cover the energy needs of the two court complexes at Iyanganku and Ring Road in Ibadan.

    "Additionally, the Oyo State House of Assembly and a selection of schools within a defined watershed of the secretary of state's generating plant will benefit," the governor said.

    Furthermore, he hinted that his government was already thinking of incorporating a similar project into his administration's vision to facilitate the expansion of the state economic base by making power available to industrial catchment areas.

    In his opening remarks, State Energy and Natural Resources Commissioner Seun Ashamu said the project was part of the Makinde administration's initiative to provide infrastructure for the state's economic growth.

    Mr. Ashamu described infrastructure as the basis of social development and essential to induce economic development.

    “Unfortunately in Nigeria today, we have an installed generation capacity of around 13,000 megawatts with an average disposed of around 4,000 megawatts.

    “But, we only distribute between 3, 500 and 4,000 megawatts, which is further reduced by technical losses in the distribution infrastructure.

    "Therefore, a project like this - IPP, will ensure the sustainability of what we are doing in the state, since we will be able to guarantee electricity 24 hours a day," he said.

    The commissioner assured the people of the state that the 11 megawatt hybrid gas-solar plant, when completed and inaugurated, will result in improved productivity of government personnel and long-term cost savings, among other benefits.

    Commenting, Tola Talabi, the Managing Director of Elektron Energy, said that his company, Elektron Energy, was in a unique position to deliver the project to the people of the state in six months.

    Mr. Talabi said the power plant, when completed, will boost productivity, development, employment and services for the government and people of Oyo State.

    He said it would be a catalyst to show that a stand-alone power project could viable commercially operate in the state.

    "This hybrid power solution is comprised of 10 megawatts of gas engines and one megawatt of solar power," said Talabi.

    He said the hybrid power project has significant benefits for the people of the state, including reducing costs and pollution, boosting productivity, among others.

    Some of the government officials present were the Lieutenant Governor, Rauf Olaniyan, the Secretary of State Government, Olubamiwo Adeosun; some commissioners and CEOs of local governments.

    In addition, some traditional rulers, Aseyin de Iseyin, AbdulGaniyu Adekunle and Okere de Saki, Oba Khalid Olabisi, witnessed the opening ceremony.

    YAYA

  •   It has largely contributed to further illustrate ATI s role as a valuable partner in supporting renewable energy projects across the African continent NAIROBI Kenya November 17 2021 APO Group By Obbie Banda Underwriter African Trade Insurance Agency ATI www ATI aca org In November 2017 the African Trade Insurance Agency ATI and the KfW Development Bank https bit ly 3HnDYkC jointly launched the Regional Liquidity Support Facility RLSF https bit ly 3kKn6La a collateral instrument designed to address the short term liquidity risk faced by independent power producers IPPs who sell electricity to electric utilities through Sub Saharan Africa By creating RLSF ATI and KfW sought to create a long lasting and sustainable guarantee product for the benefit of small and medium sized renewable energy projects drawing on their respective experiences in supporting PPIs through insurance products and procurement initiatives for such projects In addition to RLSF ATI had previously provided a tailor made liquidity instrument for the 100 MW Kipeto Wind Farm https bit ly 3Flo6gM in Kenya while KfW was the initiator of the successful GET FiT program in Uganda KfW s total funding commitment of 32 9 million for RLSF split between technical assistance for its implementation and cash guarantees that underpin the unique structure of the product was provided by the German Federal Ministry for Economic Cooperation and Development BMZ How it works and general expectations at the start RLSF comprises cash collateral and guarantees up to a value of 63 2 million made available to Absa South Africa which in turn issues stand by letters of credit SBLC to the profit from PPIs SBLCs cover up to six 6 months of income for the IPP and can be issued for terms of up to 10 years with the option to renew afterwards Some of the unique features of the RLSF are that it allows PPIs to submit multiple claims over a 10 year period due to its renewable nature and the host government is not required to provide any counter guarantees prior to issuance of the police After entering into Memorandums of Understanding with ATI projects in the following countries may benefit from the RLSF Benin Burundi Ivory Coast Madagascar Malawi Uganda and Zambia in the hope that more of ATI s nineteen member countries will sign up In November 2021 ATI issued and finalized three RLSF guarantees in support of flagship solar projects in Burundi and Malawi the very first solar PPIs in these countries Two additional guarantees are expected to be issued by the end of the first quarter of 2022 At the time of its launch the assumption was that the availability of such a guarantee product would lead to a greater number of renewable energy projects reaching financial close and that the deadlines that these projects had to face to reach this milestone would be considerably reduced the former has been largely achieved the latter not so much While the RLSF and similar liquidity instruments are imperative in addressing the bankability gaps of grid connected power projects they do not serve as a magic wand Larger macroeconomic sectoral and project specific challenges need to be adequately addressed in each country for projects to move forward more quickly Supported transactions The first RLSF policy was issued in January 2020 to support the 7 5 MW solar photovoltaic system at Mubuga in Burundi https bit ly 3qMdCmn a project developed by Gigawatt Global with the financial support of a consortium lenders including the Renewable Energy Performance Platform REPP the United States International Development Finance Corporation DFC formerly OPIC and the Inspired Evolution II Fund The second and third RLSF policies were issued in November 2020 to support the 21MW Nkhotakota https bit ly 3oEYXXw and the 60MW Salima solar PV https bit ly 3wWBOU9 in Malawi these two projects are owned respectively by Serengeti Energy formerly responsAbility Renewable Energy Holding rAREH Phanes Group and JCM Power InfraCo Africa Limited The three projects will cumulatively add 88 5 MW to the grid in turn giving access to electricity to more than one million people The RLSF guarantees with a total value of US 7 8 million on the 3 projects made it possible to finance a total of US 119 4 million The first two RLSF policies were jointly recognized as Business of the Year Energy https bit ly 3oAMXqe at the African Banker Awards 2021 illustrating the impact and positive recognition of RLSF Lessons learned Much has changed in the electricity sector in Sub Saharan Africa since 2017 the need for liquidity guarantees and political risk insurance has evolved As buyers meet their obligations to operational PPIs increasingly well and investors gain a better understanding of the real political risk in some countries correcting past perceptions the demand for guarantee products has gradually declined bad news for political risk insurance underwriters but overall a good sign Good examples are markets such as Kenya and Uganda where developers are increasingly comfortable with not only country risk but also liquidity risk on buyers in these countries RLSF was no exception to this trend While there remains a constant demand for such liquidity instruments especially in markets at an early stage to attract PPIs there has been a noticeable shift in some more developed renewable energy markets In order for ATI to continue to respond effectively to this demand improvements to the RLSF have been identified to make its contractual structure simpler less expensive and to make the product easily deployed With alternative liquidity instruments under development and likely to become available in the coming years these envisaged changes will ensure that RLSF continues to be competitive relevant and responsive to market needs A new RLSF structure The existing structure of the RLSF operates as follows ATI and KfW jointly provide guarantees to Absa South Africa Absa then issues SBLC to beneficiary IPPs ATI working closely with KfW as well as other donors who are on track to provide additional funding will make fundamental changes going forward instead of providing a guarantee to an LC issuing bank ATI will potentially also be able to provide renewable guarantees directly to beneficiary RRIs The guarantees will be for an extended period of up to 15 years and potentially cover up to 12 months of income The additional funding will also extend the eligibility criteria to larger projects up to 100 MW from 50 MW These new changes are quite exciting for ATI and should be for all stakeholders The new structure will allow IPPs to benefit from ATI s positive credit rating of A A3 S P and Moody s respectively an improvement over any current limitation due to ratings of most African banks which is capped at the rating of their sovereign The new contracts to be signed between ATI and the IPPs will be simpler reducing the existing delays in negotiating such agreements In addition the cost of RLSF coverage will become more affordable as the fees currently charged by the SBLC issuing bank will no longer be taken into account This new structure will be in place from January 2022 Impact of Covid 19 The Covid 19 pandemic has had a huge effect on every country in the world The effect of the pandemic on people s lives and livelihoods has already strained health infrastructure and the economy has been devastating Its effect on the electricity sector has also been evident although the full impact may not be fully appreciated for a year or two Electric utilities faced greater financial hardship due to a combination of factors such as reduced demand as economies slowed and lockdowns were put in place and collections increased low among end users as amnesties were introduced by various governments All of this means that the solvency of several utilities has been strongly affected given that the starting point before the start of the pandemic was not very positive As a result of these negative effects of the pandemic the need for additional liquidity and insurance instruments against political risks that can cover the risk of termination should continue in the years to come Digitization and the role of the transparency tool The RLSF MoUs signed between ATI and African States allow ATI to collect information on buyer s payment behavior and share this information with other participating PPIs in each country from time to time the information will be made available to the public through aggregated reports The information collected is recorded and accessed through the Transparency Tool https bit ly 3DrvMxx a digital platform launched by ATI in 2019 Over time the hope is that the availability of such trends verified and reliable payments will help align the risk of perceived mispayment of electric utilities with reality The first report of the transparency tool was published in April 2021 showing that Malawi s electricity utility ESCOM was meeting its payment obligations to the country s only PPI on time Conclusion By all accounts RLSF has been a success since its launch 4 years ago it has come a long way to further illustrate ATI s role as a valuable partner in supporting renewable energy projects in across the African continent However we will not rest on our laurels and continue to innovate ensuring that RLSF evolves in tandem with the broader changes in the market With ATI s growing expertise in this unique guarantee space the aim is that such success will enable the development of additional guarantee instruments that can also stimulate and encourage private sector financing towards a just energy transition potentially supporting commercial and industrial power projects mini grids and other off grid initiatives The relative success of RLSF has shown that mobilizing finance for small and medium sized renewable energy projects is possible and achievable and that while the challenge of electrifying the entire African continent is enormous cooperation ongoing between governments multilateral institutions donor agencies and the private sector can have a significant and lasting impact
    ATI Regional Liquidity Support Facility (RLSF) – Assessing its impact four years after its launch (by Obbie Banda)
      It has largely contributed to further illustrate ATI s role as a valuable partner in supporting renewable energy projects across the African continent NAIROBI Kenya November 17 2021 APO Group By Obbie Banda Underwriter African Trade Insurance Agency ATI www ATI aca org In November 2017 the African Trade Insurance Agency ATI and the KfW Development Bank https bit ly 3HnDYkC jointly launched the Regional Liquidity Support Facility RLSF https bit ly 3kKn6La a collateral instrument designed to address the short term liquidity risk faced by independent power producers IPPs who sell electricity to electric utilities through Sub Saharan Africa By creating RLSF ATI and KfW sought to create a long lasting and sustainable guarantee product for the benefit of small and medium sized renewable energy projects drawing on their respective experiences in supporting PPIs through insurance products and procurement initiatives for such projects In addition to RLSF ATI had previously provided a tailor made liquidity instrument for the 100 MW Kipeto Wind Farm https bit ly 3Flo6gM in Kenya while KfW was the initiator of the successful GET FiT program in Uganda KfW s total funding commitment of 32 9 million for RLSF split between technical assistance for its implementation and cash guarantees that underpin the unique structure of the product was provided by the German Federal Ministry for Economic Cooperation and Development BMZ How it works and general expectations at the start RLSF comprises cash collateral and guarantees up to a value of 63 2 million made available to Absa South Africa which in turn issues stand by letters of credit SBLC to the profit from PPIs SBLCs cover up to six 6 months of income for the IPP and can be issued for terms of up to 10 years with the option to renew afterwards Some of the unique features of the RLSF are that it allows PPIs to submit multiple claims over a 10 year period due to its renewable nature and the host government is not required to provide any counter guarantees prior to issuance of the police After entering into Memorandums of Understanding with ATI projects in the following countries may benefit from the RLSF Benin Burundi Ivory Coast Madagascar Malawi Uganda and Zambia in the hope that more of ATI s nineteen member countries will sign up In November 2021 ATI issued and finalized three RLSF guarantees in support of flagship solar projects in Burundi and Malawi the very first solar PPIs in these countries Two additional guarantees are expected to be issued by the end of the first quarter of 2022 At the time of its launch the assumption was that the availability of such a guarantee product would lead to a greater number of renewable energy projects reaching financial close and that the deadlines that these projects had to face to reach this milestone would be considerably reduced the former has been largely achieved the latter not so much While the RLSF and similar liquidity instruments are imperative in addressing the bankability gaps of grid connected power projects they do not serve as a magic wand Larger macroeconomic sectoral and project specific challenges need to be adequately addressed in each country for projects to move forward more quickly Supported transactions The first RLSF policy was issued in January 2020 to support the 7 5 MW solar photovoltaic system at Mubuga in Burundi https bit ly 3qMdCmn a project developed by Gigawatt Global with the financial support of a consortium lenders including the Renewable Energy Performance Platform REPP the United States International Development Finance Corporation DFC formerly OPIC and the Inspired Evolution II Fund The second and third RLSF policies were issued in November 2020 to support the 21MW Nkhotakota https bit ly 3oEYXXw and the 60MW Salima solar PV https bit ly 3wWBOU9 in Malawi these two projects are owned respectively by Serengeti Energy formerly responsAbility Renewable Energy Holding rAREH Phanes Group and JCM Power InfraCo Africa Limited The three projects will cumulatively add 88 5 MW to the grid in turn giving access to electricity to more than one million people The RLSF guarantees with a total value of US 7 8 million on the 3 projects made it possible to finance a total of US 119 4 million The first two RLSF policies were jointly recognized as Business of the Year Energy https bit ly 3oAMXqe at the African Banker Awards 2021 illustrating the impact and positive recognition of RLSF Lessons learned Much has changed in the electricity sector in Sub Saharan Africa since 2017 the need for liquidity guarantees and political risk insurance has evolved As buyers meet their obligations to operational PPIs increasingly well and investors gain a better understanding of the real political risk in some countries correcting past perceptions the demand for guarantee products has gradually declined bad news for political risk insurance underwriters but overall a good sign Good examples are markets such as Kenya and Uganda where developers are increasingly comfortable with not only country risk but also liquidity risk on buyers in these countries RLSF was no exception to this trend While there remains a constant demand for such liquidity instruments especially in markets at an early stage to attract PPIs there has been a noticeable shift in some more developed renewable energy markets In order for ATI to continue to respond effectively to this demand improvements to the RLSF have been identified to make its contractual structure simpler less expensive and to make the product easily deployed With alternative liquidity instruments under development and likely to become available in the coming years these envisaged changes will ensure that RLSF continues to be competitive relevant and responsive to market needs A new RLSF structure The existing structure of the RLSF operates as follows ATI and KfW jointly provide guarantees to Absa South Africa Absa then issues SBLC to beneficiary IPPs ATI working closely with KfW as well as other donors who are on track to provide additional funding will make fundamental changes going forward instead of providing a guarantee to an LC issuing bank ATI will potentially also be able to provide renewable guarantees directly to beneficiary RRIs The guarantees will be for an extended period of up to 15 years and potentially cover up to 12 months of income The additional funding will also extend the eligibility criteria to larger projects up to 100 MW from 50 MW These new changes are quite exciting for ATI and should be for all stakeholders The new structure will allow IPPs to benefit from ATI s positive credit rating of A A3 S P and Moody s respectively an improvement over any current limitation due to ratings of most African banks which is capped at the rating of their sovereign The new contracts to be signed between ATI and the IPPs will be simpler reducing the existing delays in negotiating such agreements In addition the cost of RLSF coverage will become more affordable as the fees currently charged by the SBLC issuing bank will no longer be taken into account This new structure will be in place from January 2022 Impact of Covid 19 The Covid 19 pandemic has had a huge effect on every country in the world The effect of the pandemic on people s lives and livelihoods has already strained health infrastructure and the economy has been devastating Its effect on the electricity sector has also been evident although the full impact may not be fully appreciated for a year or two Electric utilities faced greater financial hardship due to a combination of factors such as reduced demand as economies slowed and lockdowns were put in place and collections increased low among end users as amnesties were introduced by various governments All of this means that the solvency of several utilities has been strongly affected given that the starting point before the start of the pandemic was not very positive As a result of these negative effects of the pandemic the need for additional liquidity and insurance instruments against political risks that can cover the risk of termination should continue in the years to come Digitization and the role of the transparency tool The RLSF MoUs signed between ATI and African States allow ATI to collect information on buyer s payment behavior and share this information with other participating PPIs in each country from time to time the information will be made available to the public through aggregated reports The information collected is recorded and accessed through the Transparency Tool https bit ly 3DrvMxx a digital platform launched by ATI in 2019 Over time the hope is that the availability of such trends verified and reliable payments will help align the risk of perceived mispayment of electric utilities with reality The first report of the transparency tool was published in April 2021 showing that Malawi s electricity utility ESCOM was meeting its payment obligations to the country s only PPI on time Conclusion By all accounts RLSF has been a success since its launch 4 years ago it has come a long way to further illustrate ATI s role as a valuable partner in supporting renewable energy projects in across the African continent However we will not rest on our laurels and continue to innovate ensuring that RLSF evolves in tandem with the broader changes in the market With ATI s growing expertise in this unique guarantee space the aim is that such success will enable the development of additional guarantee instruments that can also stimulate and encourage private sector financing towards a just energy transition potentially supporting commercial and industrial power projects mini grids and other off grid initiatives The relative success of RLSF has shown that mobilizing finance for small and medium sized renewable energy projects is possible and achievable and that while the challenge of electrifying the entire African continent is enormous cooperation ongoing between governments multilateral institutions donor agencies and the private sector can have a significant and lasting impact
    ATI Regional Liquidity Support Facility (RLSF) – Assessing its impact four years after its launch (by Obbie Banda)
    Africa11 months ago

    ATI Regional Liquidity Support Facility (RLSF) – Assessing its impact four years after its launch (by Obbie Banda)

    It has largely contributed to further illustrate ATI's role as a valuable partner in supporting renewable energy projects across the African continent.

    NAIROBI, Kenya, November 17, 2021 / APO Group / -

    By Obbie Banda, Underwriter, African Trade Insurance Agency (ATI) (www.ATI-aca.org)

    In November 2017, the African Trade Insurance Agency (ATI) and the KfW Development Bank (https://bit.ly/3HnDYkC) jointly launched the Regional Liquidity Support Facility (RLSF) (https: //bit.ly/3kKn6La) - a collateral instrument designed to address the short-term liquidity risk faced by independent power producers (IPPs) who sell electricity to electric utilities through Sub-Saharan Africa. By creating RLSF, ATI and KfW sought to create a long-lasting and sustainable guarantee product for the benefit of small and medium-sized renewable energy projects, drawing on their respective experiences in supporting PPIs through insurance products. and procurement initiatives for such projects. In addition to RLSF, ATI had previously provided a tailor-made liquidity instrument for the 100 MW Kipeto Wind Farm (https://bit.ly/3Flo6gM) in Kenya, while KfW was the initiator of the successful GET FiT program in Uganda. .

    KfW's total funding commitment of € 32.9 million for RLSF, split between technical assistance for its implementation and cash guarantees that underpin the unique structure of the product, was provided by the German Federal Ministry for Economic Cooperation and Development (BMZ).

    How it works and general expectations at the start

    RLSF comprises cash collateral and guarantees up to a value of € 63.2 million, made available to Absa South Africa which in turn issues stand-by letters of credit (SBLC) to the profit from PPIs. SBLCs cover up to six (6) months of income for the IPP and can be issued for terms of up to 10 years - with the option to renew afterwards. Some of the unique features of the RLSF are that it allows PPIs to submit multiple claims over a 10-year period due to its renewable nature, and the host government is not required to provide any counter-guarantees prior to issuance. of the police.

    After entering into Memorandums of Understanding with ATI, projects in the following countries may benefit from the RLSF; Benin, Burundi, Ivory Coast, Madagascar, Malawi, Uganda and Zambia in the hope that more of ATI's nineteen member countries will sign up. In November 2021, ATI issued and finalized three RLSF guarantees in support of flagship solar projects in Burundi and Malawi - the very first solar PPIs in these countries. Two additional guarantees are expected to be issued by the end of the first quarter of 2022.

    At the time of its launch, the assumption was that the availability of such a guarantee product would lead to a greater number of renewable energy projects reaching financial close and that the deadlines that these projects had to face to reach this milestone. would be considerably reduced - the former has been largely achieved, the latter not so much. While the RLSF and similar liquidity instruments are imperative in addressing the bankability gaps of grid-connected power projects, they do not serve as a magic wand! Larger macroeconomic, sectoral and project specific challenges need to be adequately addressed in each country for projects to move forward more quickly.

    Supported transactions

    The first RLSF policy was issued in January 2020 to support the 7.5 MW solar photovoltaic system at Mubuga in Burundi (https://bit.ly/3qMdCmn), a project developed by Gigawatt Global with the financial support of a consortium lenders including the Renewable Energy Performance Platform (REPP), the United States International Development Finance Corporation (DFC) (formerly OPIC) and the Inspired Evolution II Fund. The second and third RLSF policies were issued in November 2020 to support the 21MW Nkhotakota (https://bit.ly/3oEYXXw) and the 60MW Salima solar PV (https://bit.ly/3wWBOU9) in Malawi; these two projects are owned respectively by Serengeti Energy (formerly responsAbility Renewable Energy Holding (rAREH)) / Phanes Group and JCM Power / InfraCo Africa Limited.

    The three projects will cumulatively add 88.5 MW to the grid, in turn giving access to electricity to more than one million people. The RLSF guarantees, with a total value of US $ 7.8 million on the 3 projects, made it possible to finance a total of US $ 119.4 million. The first two RLSF policies were jointly recognized as Business of the Year - Energy (https://bit.ly/3oAMXqe) at the African Banker Awards 2021 - illustrating the impact and positive recognition of RLSF!

    Lessons learned

    Much has changed in the electricity sector in Sub-Saharan Africa since 2017 - the need for liquidity guarantees and political risk insurance has evolved. As buyers meet their obligations to operational PPIs increasingly well and investors gain a better understanding of the real political risk in some countries (correcting past perceptions), the demand for guarantee products has gradually declined. (bad news for political risk insurance underwriters, but overall a good sign!). Good examples are markets such as Kenya and Uganda where developers are increasingly comfortable with not only country risk but also liquidity risk on buyers in these countries.

    RLSF was no exception to this trend. While there remains a constant demand for such liquidity instruments, especially in markets at an early stage to attract PPIs, there has been a noticeable shift in some more developed renewable energy markets. In order for ATI to continue to respond effectively to this demand, improvements to the RLSF have been identified - to make its contractual structure simpler, less expensive and to make the product easily deployed. With alternative liquidity instruments under development and likely to become available in the coming years, these envisaged changes will ensure that RLSF continues to be competitive, relevant and responsive to market needs.

    A new RLSF structure

    The existing structure of the RLSF operates as follows: ATI and KfW jointly provide guarantees to Absa South Africa; Absa then issues SBLC to beneficiary IPPs. ATI, working closely with KfW (as well as other donors who are on track to provide additional funding), will make fundamental changes going forward - instead of providing a guarantee to an LC issuing bank. , ATI will potentially also be able to provide renewable guarantees directly. to beneficiary RRIs. The guarantees will be for an extended period of up to 15 years and potentially cover up to 12 months of income. The additional funding will also extend the eligibility criteria to larger projects up to 100 MW (from 50 MW).

    These new changes are quite exciting for ATI and should be for all stakeholders! The new structure will allow IPPs to benefit from ATI's positive credit rating of A / A3 (S&P and Moody's respectively), an improvement over any current limitation due to ratings of most African banks, which is capped at the rating of their sovereign. The new contracts to be signed between ATI and the IPPs will be simpler - reducing the existing delays in negotiating such agreements. In addition, the cost of RLSF coverage will become more affordable, as the fees currently charged by the SBLC issuing bank will no longer be taken into account. This new structure will be in place from January 2022.

    Impact of Covid-19

    The Covid-19 pandemic has had a huge effect on every country in the world. The effect of the pandemic on people's lives and livelihoods has already strained health infrastructure and the economy has been devastating. Its effect on the electricity sector has also been evident, although the full impact may not be fully appreciated for a year or two. Electric utilities faced greater financial hardship due to a combination of factors such as reduced demand as economies slowed and lockdowns were put in place, and collections increased. low among end users as amnesties were introduced by various governments. All of this means that the solvency of several utilities has been strongly affected - given that the starting point before the start of the pandemic was not very positive.

    As a result of these negative effects of the pandemic, the need for additional liquidity and insurance instruments against political risks that can cover the risk of termination should continue in the years to come.

    Digitization and the role of the transparency tool

    The RLSF MoUs signed between ATI and African States allow ATI to collect information on buyer's payment behavior and share this information with other participating PPIs in each country - from time to time, the information will be made available to the public through aggregated reports. The information collected is recorded and accessed through the Transparency Tool (https://bit.ly/3DrvMxx) - a digital platform launched by ATI in 2019. Over time, the hope is that the availability of such trends verified and reliable payments will help align the risk of perceived mispayment of electric utilities with reality. The first report of the transparency tool was published in

    April 2021 - showing that Malawi's electricity utility, ESCOM, was meeting its payment obligations to the country's only PPI on time.

    Conclusion

    By all accounts, RLSF has been a success since its launch 4 years ago - it has come a long way to further illustrate ATI's role as a valuable partner in supporting renewable energy projects in across the African continent. However, we will not rest on our laurels and continue to innovate, ensuring that RLSF evolves in tandem with the broader changes in the market. With ATI's growing expertise in this unique guarantee space, the aim is that such success will enable the development of additional guarantee instruments that can also stimulate and encourage private sector financing towards a just energy transition - potentially supporting commercial and industrial power projects, mini-grids and other off-grid initiatives.

    The relative success of RLSF has shown that mobilizing finance for small and medium-sized renewable energy projects is possible and achievable, and that while the challenge of electrifying the entire African continent is enormous, cooperation ongoing between governments, multilateral institutions, donor agencies and the private sector can have a significant and lasting impact.

  •   Africa s power sector can be accelerated in the transition to new energies with information gleaned from other places where unbundling has already started in earnest JOHANNESBURG South Africa October 11 2021 APO Group Africa is currently on the cusp of a transition to a new energy paradigm in which technological and business innovations are delivering increasingly decentralized energy to the peoples of the continent in new ways Download the document Energy transition a new path to power in Africa A recent white paper published by global management consulting firm Kearney outlines the overarching strategic considerations for African utilities to chart the course for sustainability in the context of this global paradigm shift Entitled A New Energy Path to Viability for African Utilities the paper presents the broader macroeconomic trends shaping the transition Kearney s partner Igor Hulak explains the dual mandate of energy utilities in Africa which play a vital role on the continent The availability of electricity is essential for economic growth and more importantly for social development Utilities must provide sufficient and affordable power for these two imperatives adds Hulak He added that an adequate supply of electricity foreshadows the overall economic development of a country Conversely insufficient availability of electricity has been identified as a major obstacle facing African businesses having been ranked 1st in sub Saharan Africa in the face of other challenges such as finance informal corruption and taxes The 3 main drivers of the transition to what is called the world of new energy decarbonization decentralization and digitization are also facilitating the historic tendency of nations to liberalize their energy sectors as they grow and develop economically In most African states liberalization has not yet fully started and integrated state controlled monopoly public services VUIs are still responsible for all the main functions of the sector production transmission and distribution or sale Some states such as South Africa Nigeria Kenya Ghana and Egypt are in the initial phase of liberalization and have seen the emergence of independent power producers IPPS whose power and capacity are sold to VUI under long term power purchase agreements African leaders are strategically planning the natural transition to the more organic market of the next stage of liberalization over the next few years in which parastatal VUIs are legally and functionally unbundled into separate entities for production transmission and sale Hulak remarks While European public services have largely unbundled from a position of strength struggling African public services face a very different reality The many challenges associated with the commercialization of operations and the management of an unbundled electricity network are formidable and complex Unbundling will not be an easy path but we must face obstacles head on if we are to ensure a sustainable African electricity sector says Hulak Hulak notes that unbundling brings 3 important advantages transparency competition and the potential for private sector participation Increased competition boosts the efficiency of production as well as services and collection In later phases the IUVs are fully unbundled and there is a vibrant environment for private sector participation in both distribution and sales resulting in a competitive and healthy wholesale market These hybrid business models have already been implemented in much of Europe Asia and the Americas Due to the historic timing of liberalization in Africa African states should benefit from the advent of cost competitive renewable energy and embrace decarbonization as they embark on the path of liberalization African utilities now have the opportunity to take many steps taken by other countries on the path to liberalizing energy supply says Hulak Technological breakthroughs economies of scale state sponsored decarbonization and a culture of innovation enable African power producers to take advantage of the continent s abundant wind and solar resources Renewable energies are on the way to becoming a major contributor to Africa s energy mix Kearney s white paper looks at case studies of relevant African utilities from South Africa and Ghana and examines the lessons that can be learned from their efforts so far He notes that several African IVUs including Eskom face a myriad of difficulties resulting from inadequate maintenance of infrastructure In monopoly models the absence of competition means that there are few incentives to improve efficiency Many monopoly UVIs in Africa are now starting to break away from a compromised position of over reliance on government subsidies In this archaic model state run VUIs are heavily subsidized with funds from other more profitable economic sectors The artificially reduced household tariffs generated by such systems close the affordability gap but ultimately these models are unsustainable and typically result in public service debt especially when subsidies fluctuate with changing times changing government priorities Hulak explains Several years ahead of most African states in modernizing and developing their energy markets and hailed as the leader in the electricity sector on the continent Ghana has paved a path from which other African VIUs can be inspired to modernize and develop their energy markets Like several other African UTIs Ghana has also started to separate from a weak position in a difficult socio economic context Initially the sector was unbundled into separate generation and transmission services with regulatory bodies created in parallel for technical regulation and licensing as well as for economic regulation and the setting of tariffs This unbundling was a first step for the subsequent introduction of PPIs into the national energy mix and the establishment of the wholesale electricity market for large customers Since then Ghana has pursued the path of reform and innovation in the electricity sector including the attempt to introduce private sector participation in electricity distribution Even if this initiative has not yet succeeded it does not call into question the fundamental directional correctness of the path the country is taking In summary Hulak notes that Africa s traditional VIUs have the opportunity to embrace the new energy world rather than combat it leveraging their already existing expertise and resources to expand their portfolio of new energy products and services in a customer centric way The electricity sector in Africa can be accelerated in the transition to new energies with information gleaned from other places where unbundling has already started in earnest The strategic dilemma for African governments now is to focus on imported technologies for decentralized solutions or to develop integrated networks This last route requires more time and investment but would stimulate local economies he concludes
    Energy transition, a new path to power in Africa
      Africa s power sector can be accelerated in the transition to new energies with information gleaned from other places where unbundling has already started in earnest JOHANNESBURG South Africa October 11 2021 APO Group Africa is currently on the cusp of a transition to a new energy paradigm in which technological and business innovations are delivering increasingly decentralized energy to the peoples of the continent in new ways Download the document Energy transition a new path to power in Africa A recent white paper published by global management consulting firm Kearney outlines the overarching strategic considerations for African utilities to chart the course for sustainability in the context of this global paradigm shift Entitled A New Energy Path to Viability for African Utilities the paper presents the broader macroeconomic trends shaping the transition Kearney s partner Igor Hulak explains the dual mandate of energy utilities in Africa which play a vital role on the continent The availability of electricity is essential for economic growth and more importantly for social development Utilities must provide sufficient and affordable power for these two imperatives adds Hulak He added that an adequate supply of electricity foreshadows the overall economic development of a country Conversely insufficient availability of electricity has been identified as a major obstacle facing African businesses having been ranked 1st in sub Saharan Africa in the face of other challenges such as finance informal corruption and taxes The 3 main drivers of the transition to what is called the world of new energy decarbonization decentralization and digitization are also facilitating the historic tendency of nations to liberalize their energy sectors as they grow and develop economically In most African states liberalization has not yet fully started and integrated state controlled monopoly public services VUIs are still responsible for all the main functions of the sector production transmission and distribution or sale Some states such as South Africa Nigeria Kenya Ghana and Egypt are in the initial phase of liberalization and have seen the emergence of independent power producers IPPS whose power and capacity are sold to VUI under long term power purchase agreements African leaders are strategically planning the natural transition to the more organic market of the next stage of liberalization over the next few years in which parastatal VUIs are legally and functionally unbundled into separate entities for production transmission and sale Hulak remarks While European public services have largely unbundled from a position of strength struggling African public services face a very different reality The many challenges associated with the commercialization of operations and the management of an unbundled electricity network are formidable and complex Unbundling will not be an easy path but we must face obstacles head on if we are to ensure a sustainable African electricity sector says Hulak Hulak notes that unbundling brings 3 important advantages transparency competition and the potential for private sector participation Increased competition boosts the efficiency of production as well as services and collection In later phases the IUVs are fully unbundled and there is a vibrant environment for private sector participation in both distribution and sales resulting in a competitive and healthy wholesale market These hybrid business models have already been implemented in much of Europe Asia and the Americas Due to the historic timing of liberalization in Africa African states should benefit from the advent of cost competitive renewable energy and embrace decarbonization as they embark on the path of liberalization African utilities now have the opportunity to take many steps taken by other countries on the path to liberalizing energy supply says Hulak Technological breakthroughs economies of scale state sponsored decarbonization and a culture of innovation enable African power producers to take advantage of the continent s abundant wind and solar resources Renewable energies are on the way to becoming a major contributor to Africa s energy mix Kearney s white paper looks at case studies of relevant African utilities from South Africa and Ghana and examines the lessons that can be learned from their efforts so far He notes that several African IVUs including Eskom face a myriad of difficulties resulting from inadequate maintenance of infrastructure In monopoly models the absence of competition means that there are few incentives to improve efficiency Many monopoly UVIs in Africa are now starting to break away from a compromised position of over reliance on government subsidies In this archaic model state run VUIs are heavily subsidized with funds from other more profitable economic sectors The artificially reduced household tariffs generated by such systems close the affordability gap but ultimately these models are unsustainable and typically result in public service debt especially when subsidies fluctuate with changing times changing government priorities Hulak explains Several years ahead of most African states in modernizing and developing their energy markets and hailed as the leader in the electricity sector on the continent Ghana has paved a path from which other African VIUs can be inspired to modernize and develop their energy markets Like several other African UTIs Ghana has also started to separate from a weak position in a difficult socio economic context Initially the sector was unbundled into separate generation and transmission services with regulatory bodies created in parallel for technical regulation and licensing as well as for economic regulation and the setting of tariffs This unbundling was a first step for the subsequent introduction of PPIs into the national energy mix and the establishment of the wholesale electricity market for large customers Since then Ghana has pursued the path of reform and innovation in the electricity sector including the attempt to introduce private sector participation in electricity distribution Even if this initiative has not yet succeeded it does not call into question the fundamental directional correctness of the path the country is taking In summary Hulak notes that Africa s traditional VIUs have the opportunity to embrace the new energy world rather than combat it leveraging their already existing expertise and resources to expand their portfolio of new energy products and services in a customer centric way The electricity sector in Africa can be accelerated in the transition to new energies with information gleaned from other places where unbundling has already started in earnest The strategic dilemma for African governments now is to focus on imported technologies for decentralized solutions or to develop integrated networks This last route requires more time and investment but would stimulate local economies he concludes
    Energy transition, a new path to power in Africa
    Africa12 months ago

    Energy transition, a new path to power in Africa

    Africa's power sector can be accelerated in the transition to new energies, with information gleaned from other places where unbundling has already started in earnest.

    JOHANNESBURG, South Africa, October 11, 2021 / APO Group / -

    Africa is currently on the cusp of a transition to a new energy paradigm, in which technological and business innovations are delivering increasingly decentralized energy to the peoples of the continent in new ways.

    Download the document: Energy transition - a new path to power in Africa

    A recent white paper published by global management consulting firm Kearney outlines the overarching strategic considerations for African utilities to chart the course for sustainability in the context of this global paradigm shift. Entitled A New Energy Path to Viability for African Utilities, the paper presents the broader macroeconomic trends shaping the transition.

    Kearney's partner Igor Hulak explains the dual mandate of energy utilities in Africa, which play a vital role on the continent. “The availability of electricity is essential for economic growth and, more importantly, for social development. Utilities must provide sufficient and affordable power for these two imperatives, ”adds Hulak.

    He added that an adequate supply of electricity foreshadows the overall economic development of a country. Conversely, insufficient availability of electricity has been identified as a major obstacle facing African businesses, having been ranked 1st in sub-Saharan Africa in the face of other challenges such as finance, informal corruption and taxes.

    The 3 main drivers of the transition to what is called the world of new energy; decarbonization, decentralization and digitization are also facilitating the historic tendency of nations to liberalize their energy sectors as they grow and develop economically. In most African states, liberalization has not yet fully started, and integrated, state-controlled monopoly public services (VUIs) are still responsible for all the main functions of the sector: production, transmission and distribution, or sale. Some states such as South Africa, Nigeria, Kenya, Ghana and Egypt are in the initial phase of liberalization and have seen the emergence of independent power producers (IPPS) whose power and capacity are sold to VUI under long-term power purchase agreements.

    "African leaders are strategically planning the natural transition to the more organic market of the next stage of liberalization over the next few years, in which parastatal VUIs are legally and functionally unbundled into separate entities for production, transmission and sale," Hulak remarks.

    “While European public services have largely unbundled from a position of strength, struggling African public services face a very different reality. The many challenges associated with the commercialization of operations and the management of an unbundled electricity network are formidable and complex. Unbundling will not be an easy path, but we must face obstacles head-on if we are to ensure a sustainable African electricity sector, ”says Hulak.

    Hulak notes that unbundling brings 3 important advantages: transparency, competition and the potential for private sector participation. Increased competition boosts the efficiency of production, as well as services and collection.

    In later phases, the IUVs are fully unbundled and there is a vibrant environment for private sector participation in both distribution and sales, resulting in a competitive and healthy wholesale market. These hybrid business models have already been implemented in much of Europe, Asia and the Americas.

    Due to the historic timing of liberalization in Africa, African states should benefit from the advent of cost competitive renewable energy and embrace decarbonization as they embark on the path of liberalization.

    "African utilities now have the opportunity to take many steps taken by other countries on the path to liberalizing energy supply," says Hulak. “Technological breakthroughs, economies of scale, state-sponsored decarbonization and a culture of innovation enable African power producers to take advantage of the continent's abundant wind and solar resources. Renewable energies are on the way to becoming a major contributor to Africa's energy mix ”.

    Kearney's white paper looks at case studies of relevant African utilities from South Africa and Ghana and examines the lessons that can be learned from their efforts so far.

    He notes that several African IVUs, including Eskom, face a myriad of difficulties resulting from inadequate maintenance of infrastructure. In monopoly models, the absence of competition means that there are few incentives to improve efficiency.

    “Many monopoly UVIs in Africa are now starting to break away from a compromised position of over-reliance on government subsidies. In this archaic model, state-run VUIs are heavily subsidized with funds from other more profitable economic sectors. The artificially reduced household tariffs generated by such systems close the affordability gap, but ultimately these models are unsustainable and typically result in public service debt, especially when subsidies fluctuate with changing times. changing government priorities, ”Hulak explains.

    Several years ahead of most African states in modernizing and developing their energy markets and hailed as the leader in the electricity sector on the continent, Ghana has paved a path from which other African VIUs can be inspired to modernize and develop their energy markets.

    Like several other African UTIs, Ghana has also started to separate from a weak position, in a difficult socio-economic context. Initially, the sector was unbundled into separate generation and transmission services, with regulatory bodies created in parallel for: technical regulation and licensing; as well as for economic regulation and the setting of tariffs. This unbundling was a first step for the subsequent introduction of PPIs into the national energy mix and the establishment of the wholesale electricity market for large customers.

    Since then, Ghana has pursued the path of reform and innovation in the electricity sector, including the attempt to introduce private sector participation in electricity distribution. Even if this initiative has not yet succeeded, it does not call into question the fundamental directional correctness of the path the country is taking.

    In summary, Hulak notes that Africa's traditional VIUs have the opportunity to embrace the new energy world rather than combat it - leveraging their already existing expertise and resources to expand their portfolio of new energy products and services. 'in a customer-centric way.

    “The electricity sector in Africa can be accelerated in the transition to new energies, with information gleaned from other places where unbundling has already started in earnest. The strategic dilemma for African governments now is to focus on imported technologies for decentralized solutions or to develop integrated networks. This last route requires more time and investment, but would stimulate local economies, ”he concludes.

  •   Catalytic financing of the GCF alongside that of the African Development Bank and the private sector will together mobilize nearly 1 billion for this truly transformative project ABIDJAN Ivory Coast October 10 2021 APO Group The African Development Bank www AfDB org has welcomed a 150 million investment in its Desert to Power G5 funding mechanism from the Green Climate Fund GCF The GCF approved the amount at its 30th board meeting this week Desert to Power is a flagship renewable energy and economic development initiative led by the African Development Bank Its goal is to illuminate and power the Sahel region by building an electricity generation capacity of 10 gigawatts through solar photovoltaic systems through public private grid and off grid projects by 2030 The objective of the G5 Desert to Power funding mechanism is to help the G5 Sahel countries Burkina Faso Chad Mali Mauritania and Niger to adopt a path of low emission electricity generation by exploiting the abundant solar potential of the region It will mobilize 966 million over a seven year implementation period The initiative is expected to lead to substantial reductions in CO2 emissions projected to over 14 4 million tCO2equ The facility consists of public and private sector sub projects which will be implemented under three streams The first involves investments in the grid and investments in storage solutions to reduce the risks of solar PPIs and open up the path to the adoption of a regional solar market The second component includes the provision of concessional finance and guarantees for new independent solar power plants to add more than 500 megawatts of solar power generation capacity The third component involves technical assistance to support the creation of a clear and predictable environment for private sector solar investments and the development of adequate capacity of national institutions in the G5 Sahel countries African Development Bank Vice President Dr Kevin Kariuki welcomed the approval of the Green Climate Fund He said The Desert to Power G5 Sahel facility is a big boost for the Desert to Power initiative It will stimulate private sector investments in the development of solar production capacities in the G5 Sahel countries This will be an opportunity to realize the vision of Dr Adesina and by extension of the African Development Bank of the Desert to Power initiative as an integral part of the solution to combat climate change in the Sahel The timing of the approval is also perfect just before COP26 Reacting to the approval GCF Deputy Executive Director Javier Manzanares said We are proud to be part of this innovative project with our partners at the African Development Bank The Desert to Power G5 Sahel facility has the potential to make a huge difference in the lives of people across the Sahel by harnessing the immense potential of solar power producing cheaper reliable and low emission electricity GCF s catalytic funding alongside that of the African Development Bank and the private sector will together mobilize nearly 1 billion for this truly transformative project
    G5 Sahel’s Desert to Power funding mechanism receives $ 150 million from the Green Climate Fund
      Catalytic financing of the GCF alongside that of the African Development Bank and the private sector will together mobilize nearly 1 billion for this truly transformative project ABIDJAN Ivory Coast October 10 2021 APO Group The African Development Bank www AfDB org has welcomed a 150 million investment in its Desert to Power G5 funding mechanism from the Green Climate Fund GCF The GCF approved the amount at its 30th board meeting this week Desert to Power is a flagship renewable energy and economic development initiative led by the African Development Bank Its goal is to illuminate and power the Sahel region by building an electricity generation capacity of 10 gigawatts through solar photovoltaic systems through public private grid and off grid projects by 2030 The objective of the G5 Desert to Power funding mechanism is to help the G5 Sahel countries Burkina Faso Chad Mali Mauritania and Niger to adopt a path of low emission electricity generation by exploiting the abundant solar potential of the region It will mobilize 966 million over a seven year implementation period The initiative is expected to lead to substantial reductions in CO2 emissions projected to over 14 4 million tCO2equ The facility consists of public and private sector sub projects which will be implemented under three streams The first involves investments in the grid and investments in storage solutions to reduce the risks of solar PPIs and open up the path to the adoption of a regional solar market The second component includes the provision of concessional finance and guarantees for new independent solar power plants to add more than 500 megawatts of solar power generation capacity The third component involves technical assistance to support the creation of a clear and predictable environment for private sector solar investments and the development of adequate capacity of national institutions in the G5 Sahel countries African Development Bank Vice President Dr Kevin Kariuki welcomed the approval of the Green Climate Fund He said The Desert to Power G5 Sahel facility is a big boost for the Desert to Power initiative It will stimulate private sector investments in the development of solar production capacities in the G5 Sahel countries This will be an opportunity to realize the vision of Dr Adesina and by extension of the African Development Bank of the Desert to Power initiative as an integral part of the solution to combat climate change in the Sahel The timing of the approval is also perfect just before COP26 Reacting to the approval GCF Deputy Executive Director Javier Manzanares said We are proud to be part of this innovative project with our partners at the African Development Bank The Desert to Power G5 Sahel facility has the potential to make a huge difference in the lives of people across the Sahel by harnessing the immense potential of solar power producing cheaper reliable and low emission electricity GCF s catalytic funding alongside that of the African Development Bank and the private sector will together mobilize nearly 1 billion for this truly transformative project
    G5 Sahel’s Desert to Power funding mechanism receives $ 150 million from the Green Climate Fund
    Africa12 months ago

    G5 Sahel’s Desert to Power funding mechanism receives $ 150 million from the Green Climate Fund

    Catalytic financing of the GCF alongside that of the African Development Bank and the private sector will together mobilize nearly $ 1 billion for this truly transformative project

    ABIDJAN, Ivory Coast, October 10, 2021 / APO Group / -

    The African Development Bank (www.AfDB.org) has welcomed a $ 150 million investment in its Desert to Power G5 funding mechanism from the Green Climate Fund (GCF). The GCF approved the amount at its 30th board meeting this week.

    Desert-to-Power is a flagship renewable energy and economic development initiative led by the African Development Bank. Its goal is to illuminate and power the Sahel region by building an electricity generation capacity of 10 gigawatts through solar photovoltaic systems through public, private, grid and off-grid projects by 2030.

    The objective of the G5 Desert to Power funding mechanism is to help the G5 Sahel countries - Burkina Faso, Chad, Mali, Mauritania and Niger - to adopt a path of low-emission electricity generation by exploiting the abundant solar potential of the region. It will mobilize $ 966 million over a seven-year implementation period. The initiative is expected to lead to substantial reductions in CO2 emissions - projected to over 14.4 million tCO2equ.

    The facility consists of public and private sector sub-projects, which will be implemented under three streams: The first involves investments in the grid and investments in storage solutions to reduce the risks of solar PPIs and open up the path to the adoption of a regional solar market. The second component includes the provision of concessional finance and guarantees for new independent solar power plants to add more than 500 megawatts of solar power generation capacity. The third component involves technical assistance to support the creation of a clear and predictable environment for private sector solar investments and the development of adequate capacity of national institutions in the G5 Sahel countries.

    African Development Bank Vice President Dr Kevin Kariuki welcomed the approval of the Green Climate Fund. He said: “The Desert to Power G5 Sahel facility is a big boost for the Desert to Power initiative. It will stimulate private sector investments in the development of solar production capacities in the G5 Sahel countries. This will be an opportunity to realize the vision of Dr Adesina and by extension of the African Development Bank of the Desert to Power initiative as an integral part of the solution to combat climate change in the Sahel. The timing of the approval is also perfect, just before COP26. "

    Reacting to the approval, GCF Deputy Executive Director Javier Manzanares said: “We are proud to be part of this innovative project with our partners at the African Development Bank. The Desert to Power G5 Sahel facility has the potential to make a huge difference in the lives of people across the Sahel by harnessing the immense potential of solar power, producing cheaper, reliable and low-emission electricity. . GCF's catalytic funding alongside that of the African Development Bank and the private sector will together mobilize nearly $ 1 billion for this truly transformative project.