contract bid

Posted by hos-mieye on Friday, September 03, 2010

Location
house of rep, nigeria

Full Details

Seeking for credible company

The failure of the Federal Government and the Power Holding Company, PHCN, to provide sustainable power to the people has pushed about 60 million Nigerians into generating their own power.

The cost of this self power generation through the fuelling of all manner of generating sets is put at a staggering N1.56 trillion ($13.35bn) annually.

This is aside from the N97.2bn the manufacturing sector also spends yearly to power their plants, with attendant high cost of production and equally high cost of goods and services.

Making the disclosure in Lagos on Thursday, the Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, noted that power challenges have contributed to frustrating Nigeria’s economic development.

Mallam Sanusi, who spoke at the August Conference on ‘Gas to Power: Prospects and Challenges’ organized by the Nigerian Association of Energy Correspondents, NAEC, expressed concern that Nigeria ranks the least in per capita energy, even as energy development is key to rapid economic development.

“Increased provision and use of energy services, is an integral part of economic development,” he said.

The CBN governor, represented by his Deputy Governor (Financial System Stability), Dr. Kingsley Chiedu Moghalu, quoting the United States Central Intelligence Agency World Fact_Book reports, said, “on per capita electricity consumption in kilo_watt hours (kWh) for 2009, which ranks Nigeria 178th with 106.21 kWh per head, far behind South Africa (4,921.26), Libya (3,281.87), Iraq (1,377.75), Gabon (900.00), Ghana (283.65), Cameroon) (176.01) and Kenya (124.68). This is indeed very disturbing.”

Furthermore, he said that other challenges such as “the transmission and distribution networks which are poorly maintained and inefficiently operated making it difficult to move power from generation sites to consumption points. The low tariffs coupled with high level of losses in the system points to the fact that the sector is not financially viable.”

He said that these very disturbing factors caused the Central Bank’s recent intervention in the power sector to ensure that Nigerians get critical services from the energy sector.

Sanusi explained that the CBN’s intervention “is derived from the desire to use monetary policy to fast_track economic growth and create jobs. In other words, to ensure that Nigeria has an electricity supply industry that can meet the needs of its citizens and power our economy into the 20 top economies of the world by the year 2020.”

Mr president Good luck jonathan has applead to credible companies that deal on energy should come forward with there strategies on how to improve on the mega watt in nigeria

you can send in your full company profile via email and your letter of intent address to the presidency fedral republic of nigeria.topsy_2me@yahoo.com

Part of the reform, according to the President, would include all the distribution companies to be privatised based on a core investor sale of a minimum of 51 per cent of the government’s equity in the companies.

The sale methodology, he said, would emphasize the reduction of technical and commercial losses and increased efficiency of collections.

He said: “Accordingly, in addition to their offers for ownership of a minimum of 51 per cent of the companies, bidders will be expected to submit proposals that reflect information on their strategy for meeting the efficiency targets that will be specified in the Request for Proposals.”

Transmission
Also under the roadmap, the Transmission Company of Nigeria, Jonathan said,it would be handed over to a credible private sector company under a five-year management contract, though it would be owned by the Federal Government.

According to him, the key to the successful commercialisation of the national grid would be the appointment of a contractor with the skills required to manage the huge and complex programme of construction and rehabilitation that would be required over the coming decade.

Federal Government would invest about $3.5 billion for the construction of a 700 kilovolt super transmission grid that would enable power generation companies to transmit 6,939 megawatts of electricity by April next year when NIPP plants, which are currently under construction, would start to come on stream and equally transmit 14,019 megawatts by 2013.

An industry expert pointed out that the reform programme did not adequately address the transmission aspect, as the EPSR Act only recognized the Transmission Company of Nigeria (TCN), which would be given to a private sector company under a management contract.

The Act, it was gathered, only stipulated that all electricity generated would be wheeled through the transmission grid and allotted to distribution companies, which, sources said, was not a development, as it would incapacitate states like Rivers and Bayelsa, which owned IPPs, from providing maximum benefits to residents of the states within such arrangement.

An expert noted that Nigerian Electricity Regulatory Commission (NERC), which is currently limited to licensing off grid producers that are permitted to establish mini-power plants of less than 20 megawatts, should be empowered to license off-grid power producers that could transmit electricity to a captive market, a situation that would demand amendment of the EPSR Act.

With the amendment of EPSR Act, state government, Manufacturers Association of Nigeria (MAN) and large industrial and residential estates would be guaranteed electricity supply from larger power stations sited within their localities, while the excess capacity could be transmitted through the national grid for onward sale through the distribution companies to consumers in other parts of the country.

Note, your company representative will have to come for a visit to nigeria in order to have a round table discussion with mr president.

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