The Federal Government has commended the banking industry for its role in the success of the power privatisation exercise, saying it shows confidence in the administration and the country.
The Vice President, Architect Mohammed Namadi Sambo, who gave the commendation on Friday in Abuja, during a Special Forum on Financing the Power Sector Reforms for Economic Development, said: “Let me also congratulate the banking industry for its contribution so far to put our great country on the part of growth to attain our aspiration to be among the top 20 economies in the world through reliable, affordable and adequate power supply.”
The vice president, while congratulating the Central Bank of Nigeria for kick starting the privatisation process, through its N300 billion intervention fund for the power and aviation sectors, further challenged the banking industry to participate in funding the $8 million gas-to-power project and the $3.7 billion 20,000 megawatts power transmission capacity by 2016 project, among several others.
Sambo stated further: “The Federal Government, through NNPC, NGC and the private sector, is implementing a robust programme for the realization of the Nigerian Gas Master-plan, with specific interest in meeting the gas-to-power demand in the country at a planned cost of about $8 billion.
“Already, $500 million out of the $1 billion Euro-Bond would be utilized as counterpart funding for implementation of this project.”
On power transmission capacity, Sambo said: “The total funding for this project is estimated by the Transmission Company of Nigeria to cost about $3.7 billion.
“I am pleased to inform you that these projects have already been arranged.
“$1.6 billion is coming from the sales proceeds of the NIPP/NDPHC 10 new power plants, $500 million from the China-EXIM bank and the balance from the African Development Bank, IDB and our local banks.”
Speaking further, the vice president disclosed that the privatisation of PHCN successor companies had reached completion stage with the successful resolution of labour issues and the handing over of the Generating Companies and Distribution Companies to new owners on September 30, 2013 in a ceremony to be conducted by President Goodluck Jonathan.
He particularly commended the private sector for their confidence in the exercise.
He reiterated government’s commitment to the realisation of its ambition, among other competing and equally important sectors of transport, agriculture, education, to meet the vision 20:2020 target of 20,000mw.
The CBN Governor, Malam Sanusi Lamido Sanusi, in his remarks said the forum was to review the contribution of the banking industry to the Power Sector Reform Programme.
Sanusi said the apex bank in collaboration with the Ministry of Finance is reviewing the Development Finance Institutions and to create DFIs that would finance critical development projects.
The Chairman of the Technical Committee of the National Council on Privatisation, Atedo Peterside, gave a rundown of the processes leading to the success of the privatisation exercise.
Peterside challenged the banking industry not to relent in its support to the power sector, noting the huge potentials of the sector to the growth of the economy.
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