From Juliana Taiwo-Obalonye, Abuja
The Federal Executive Council meeting (FEC) presided over by President Muhammadu Buhari yesterday approved a new model to expand the 33KVA and 11KVA electricity transmission lines to ensure distribution of extra 2,000 megawatts (mw) lying fallow at the power stations.
The Federal Government says about 7,000mw of electricity is being generated but the existing national grid cannot transmit and distribute more than 5,000mw.
The Minister of Power, Works and Housing, Babatunde Fashola, diclosed this at the end of the meeting while addressing the State House correspondents.
He explained that the new investment arrangement now is for the Federal Government to contribute 40 per cent, while the Distribution Companies (Discos) provide the 60 per cent balance.
According to him, “while the Federal Government has 40 per cent shareholding, the Discos have 60 per cent and will be compelled to make additional investments which they were supposed to have made.
The process will involve international investment for the procurement of the equipment, lines and all of the accessories to build those networks and there will be more under international procurement standards.
The Federal Government will put its own 40 per cent and ask the Discos to put their own 60 per cent and other parties who are interested will have the opportunity to improve on the investment.
“We are expecting many more power plants to be completed this year, which will add almost 1,600mw to the grid. We can’t continue to accumulate power that doesn’t get to the people, so this framework is to start the process.”