…operators skeptical of state of Siemens project
Olusola Bello
The Federal Government is confident that it would generate of 25,000 megawatts of electricity in the country by -2025 as part of efforts to improve power supply to related businesses and other economic activities in the country.
This is even as some industry operators are skeptical about the government achieving this target before 2025, given the level of unseriouness that has attended the implementation of some of the projects that could have helped to achieve the 25,000mw.
The newly sworn in minister, Mua’azu Sambo in Katsina State at the weekend while inspecting some of the power transmission substation projects including the ongoing windmill project located at Lambar Rimi in Charanchi Local Government Area of the State, gave this assurance.
Some of the projects inspected include 330 KV substation located at Fatima Shema Estate which is coming from Kano, construction of 33/11 KV Liyafa substation at Katsina- Kano Road as well as the 133/33 KV Kankia Transmission Substation.
Sule Abdulaziz, explained that a number of procurements have been made by the ministry under the Presidential power Initiative to restore electricity and enhance power-related businesses across the country.
The windmill project contract which was awarded in June 2009 was designed to generate 10 megawatts of electricity for Katsina State and was expected to be completed within 24 months.
According to Channels Television, the initial contractor moved to the site in 2010 after which the project engineer was kidnapped at the peak of the work in 2012 which signified the beginning of the delay in completing the project on time.
Out of the 37 wind turbines installed for the takeoff of the project, 31 have successfully been working with the remaining six of them vandalized which the ministry is working to fix ahead of the commissioning of the project.
Each of the turbines has the capacity to generate 275 kilowatts.
Sambo explained that a number of procurements have been made by the ministry under the Presidential power Initiative to restore electricity and enhance power-related businesses across the country.
The windmill project contract which was awarded in June 2009 was designed to generate 10 megawatts of electricity for Katsina State and was expected to be completed within 24 months.
Channels Television, however, gathered that the initial contractor moved to the site in 2010 after which the project engineer was kidnapped at the peak of the work in 2012 which signified the beginning of the delay in completing the project on time.
Out of the 37 wind turbines installed for the takeoff of the project, 31 have successfully been working with the remaining six of them vandalized which the ministry is working to fix ahead of the commissioning of the project.
Each of the turbines has the capacity to generate 275 kilowatts.
In the meantime, the newly appointed Minister of Power inspected three power transmission substation projects meant not only to serve as booster stations to the windmill project but also to boost electricity supply across the state.
They include 330 KV substation located at Fatima Shema Estate which is coming from Kano, construction of 33/11 KV Liyafa substation at Katsina- Kano Road as well as the 133/33 KV Kankia Transmission Substation.
Some operators are however skeptical of the planned target with all the hiccups that have been put on the way of the Siemens project since the death of Abba Kyari, the former chief of staff to president Buhari.
“The Siemens Project is a rudderless ship with a ripped sail leaking slowly but surely.
There is no one in charge.
Siemens have refused to be responsible for Project Delivery so we will have to find a local champion.
Siemens – like GE – want to supply their equipment but not install it. From what I heard, they don’t want to have joint liability with the local contractor. In essence, they want to hand over the equipment and take their money – in euros 💶. In essence, it is Siemens equipment but not a project, said an operator.
Another says: “I can imagine us expecting containers of equipment, demurrage, and issues about rusting in the salt sea air of Onne. Anyway, there is much more K-leg in the project.”
He said If the technical aspect is clearly problematic, the commercials are completely guesswork and magical thinking.
“Bureau of Public Enterprise( BPE) is no longer the minority partner in the DisCos – as signed by PMB. This is because *BPE cannot oversee a project in the DisCos if the States have the greater share!”
My question is, have the States been brought on board that they are borrowing two (2)Bn Euros?
Have the discos agreed to this loan? If yes, as what? Shareholders loan?
According to him, the only way the financing works – at the moment – is if the money/ projects are a dash to discos as always. He however does not see what BPE have to do with the DisCos now going forward.
Overall – State and LGs own 27/40; FGN 13/40 .Eko and Ikeja are essentially Federally-owned. Given that the NESI is in a serious conundrum, The mess goes beyond Siemens. Siemens will simply add to it. How it is going to be implemented commercially and technically remains muddled.
These were the views of some of the industry operators.
However Siemens said that its response to all issues regarding the project would be this year