THE PRESIDENTIAL POWER INITIATIVE WITH SIEMENS: SONNIE IROCHE CALLS FOR PRUDENT EXECUTION

THE PRESIDENTIAL POWER INITIATIVE WITH SIEMENS: SONNIE IROCHE CALLS FOR PRUDENT EXECUTION

Sonny Iroche, a former Executive Director, Finance and Account,Transmission Company of Nigeria has added his voice to growing list of notable Nigerians calling for prudent and transparent execution of the recently signed agreement with Siemens, a German Company called Presidential Power Initiative [PPI] aimed at improving Nigeria’s extremely poor and epileptic Electricity supply value chain

A statement released by Sonny Iroche on his twitter handle on May 28,2020 drawing the attention of the government on what needs to be done to make the signed agreement workable read ‘On July 22, 2019, the Federal Government of Nigeria signed an Agreement with the German Company, Siemens, in what is called the Presidential Power Initiative (PPI)- aimed at improving Nigeria’s extremely poor and epileptic Electricity supply value chain.

‘The PPI is backed with an initial $2 billion, Export Credit Loan from the German Export Credit Agency (ECA).The 3 Phased initiative, is geared towards increasing the power generation and distribution capacities from the current 3000-4000 MW to first 7000MW by the year 2021, then second phase to 11,000MW in 2023 and the third phase thereafter to 25,000MW.’

‘To any discerning Power analyst, the letter of the Agreement appears excellent. However, one major concern is that many lofty dreams of several past and present administrations have either been derailed, compromised or sabotaged by our corrupt system and penchant of not keeping to the sanctity of Contracts and Agreements. Let’s hope that an exception is made of this and that both parties to the Agreement, adhere strictly to the letter and spirit of the Agreement.’

‘The PPI, under the Agreement, would be 80% financed by the Export Credit Agency (ECA) of German, while the FGN, puts in 20% counterpart funding in line with the provisions and practices of international ECAs.’

‘Siemens under the agreement have their value propositions and clear obligations. While the FGN have theirs. Power is too serious a business to be left entirely to the FGN, hence, they are perhaps allowed 20% local value addition in terms of materials and as deemed necessary and relevant to the project.

What one however advocates , is for the constitution of a credible and formidable incorruptible Nigerians into a joint Project Monitoring Team, (pls no one should tell me that they don’t exist. They do).

Key responsibility of the Nigerian members of the monitoring team shall be to ensure fair and competitive pricing and quality assurance on both international and local content

If Nigeria is to industrialize and meet its growth and development potential, our current electricity power situation must be markedly improved from these shameful and pathetic levels. We need the services, experience and expertise of an International reputable company such as Siemens to the rescue. And hope that they train and develop local human capacity’ The statement added