25,000MW Deal: FG, Siemens Sign Pre-Engineering Phase of Presidential Power Initiative (PPI) Contract


The Federal Government and Siemens have signed a contract for the pre-engineering phase of the Presidential Power Initiative that seeks to boost power generation in the country.

The letters were signed last Thursday by Siemens Energy Nigeria and FGN Power Company, a special purpose vehicle created by the Federal Government for the project. The pre-engineering phase contract includes; Engineering design, Finalizing project specifications, Commissioning works for transmission & distribution systems and others.

The Federal Government and Siemens AG had in July 2019 signed a Letter of Agreement on the Nigerian Electrification Roadmap, now Presidential Power Initiative, with the aim of ramping up electricity generation in the country to 25,000 megawatts in six years.

The Federal Executive Council, on July 29, 2020, approved the payment of €15.21m (N6,940,081,465.20) offshore and N1.708bn onshore as part of Nigeria’s counterpart funding for the power deal.

with the issuance of the award letters

This was disclosed by the Special Assistant to President Buhari on Digital and New Media, Tolu Ogunlesi on Monday evening. He disclosed the deal was signed Thursday, 18th of February 2020.

“The FG and Siemens AG signed contract for the pre-engineering phase of the Presidential Power Initiative (PPI). Recall that the FGN payment was approved last year. FGN has set up an SPV known as the FGN Power Company to work with Siemens to implement,” he said.

Ogunlesi disclosed that the Presidential Power Initiative which used to be known as the Nigeria Electrification Roadmap (NER) will come in 3 phases:

  • Target of 7,000MW operational grid capacity
  • 11,000MW
  • 25,000MW

He added that The contract signed last week is for the pre-engineering Phase, which includes:

  • Engineering design
  • Finalizing project specifications
  • Commissioning works for transmission & distribution systems
  • Network development studies
  • Power simulation
  • Training – Support services.

“The SPV, FGNPowerCo, has the responsibility of executing the Presidential Power Initiative (PPI), providing project management for the implementation of the PPI and serving as the key manager to ensure cohesion and seamless execution,”  he added.

Recall last year that the Federal Government of Nigeria stated that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI), will save the nation over $1 billion annually.

It was also reported in July last that the Federal Government approved the sum of N8.64 billion as part of counterpart funding for the Presidential Power Initiative (PPI), which is also known as the Siemens Project, with this Siemens can now begin the pre-engineering scope of the project.

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“This award enables Siemens AG and Siemens Energy to drive forward this mega project, which will upgrade the electricity network to achieve operational capacity of 25,000 megawatts from the current average of around 4,500 MW, through a series of projects spanning three phases,” a document seen by our correspondent said.

The pre-engineering aspect will include engineering design works, specifications for onshore installation, commissioning works for the transmission and distribution systems, network development studies, power simulation, training, and support services.

It was learnt that the signing of the award letters was witnessed by the Chief of Staff to the President, Prof. Ibrahim Gambari; the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed and the Minister of Power, Mr Saleh Mamman.

According to the Federal Government, the PPI’s investment objective is to realign and optimise the available capacities across generation, transmission and distribution sectors of the electricity industry.

The Managing Director, Siemens Energy Nigeria, Seun Suleiman, was quoted as saying, “Siemens Energy is committed to work with the Federal Government of Nigeria through the FGNPowerCo to see a successful implementation of the presidential power initiative. We have successfully carried out a similar project in Egypt.

“This project will transform the energy landscape of the country and we are grateful the government has entrusted us with this notable initiative. We are capable and we will deliver excellent results.”

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