LET THERE BE LIGHT
At the First Firing & Synchronization to the Transmission Grid of Afam Power Station
Port Harcourt, 10 December, 2001
It certainly is a matter of much satisfaction for me to commission this first firing of Afam V Power Station, for the very important reason that this occasion will symbolise the last public expression of our commitment to meeting our promise to launch Nigeria into a new and brighter era of adequate power generation and supply in the year 2002.
It may be recalled that NEPA’s performance had become so dismal that I was compelled to apologise to the nation some 22 months. We then began a countdown to the end of epileptic power supply in the end. Day Zero of that countdown is now 21 days away. By the Grace God, we are on course to keeping our promise.
Our Administration has since its inception placed a high emphasis on reactivating the economy with a view to achieving significantly higher economic growth targets. This we hope to achieve through the creation of an environment that allows the private sector to undertake “value added” ventures by leveraging on our enormous resource endowments.
A major factor that has delayed the actualization of this goal has been the poor state of infrastructure in vital sectors of the economy. One such sector being the power sector.
The power sector has witnessed neglect over the past years as evidenced by such depressing facts as:
► no new transmission lines have been constructed since 1987.
► no new power station was built over the past 12 years, and
► no adequate maintenance of most of the generating units currently running at our power stations
This gross neglect has, as expected, created a plethora of problems, including low average daily generation, overloaded transmission and distribution infrastructure, inadequate communications facilities. Available generation has not kept pace with demographic changes and this has been manifested in a huge suppressed demand for electricity, which has largely been filled by expensive self-generation.
Today’s first firing and synchronization to the transmission grid of this 276mw plant, assumes enormous significance, as it is the first brand new power plant to be constructed in the past 12 years in Nigeria, and is one in a series of steps that is being undertaken by this Administration to improve the availability and quality of electricity to the Nigerian people.
Over the past one year, a number of generating units at various power stations have been successfully rehabilitated and synchronized to the grid. Most recent of these are the two units at Egbin power station, which have added 440mw to the grid. A few more generating units will be brought back within the next three weeks - before Day Zero!
The level of decay in the power sector has been extreme, to say the least, and it would be unreasonable to expect an immediate solution to all the problems that has plagued this sector over the past fifteen or so years. We have however set the ball rolling with a carefully articulated programme that should see available generation rising to 4000mw by the end of this year.
Government has also set a target of improving on this by adding an additional 1000mw of generating capacity in each subsequent year until we achieve a level of generation that can national demand comfortably and with extra margin.
Our support for the power sector is further demonstrated in significant budgetary releases totaling about eighty billion naira to NEPA over the last thirty months. A portion of these funds were used in financing the rehabilitation of generating units, while some resources were spent on rehabilitating, reinforcing and expanding the transmission and distribution infrastructure.
The construction of the Abuja-Shiroro 330kv DC transmission line and the Owerri-Ahaoda-Yengoa-Abonema 132kv Line and associated substations, commenced in year 2001. This year, contracts have been awarded for 1210 kilometers of 132kv Lines, which include: Kano-Dutse-Azare; Gombe-Yola-Jalingo; Alaoji-Calabar; Aba-Umuahia-Mbanalo; Umuhia-Ohafia; Ohafia-Arochukwu; Mbalano-Okigwe; Akure-Ado Ekiti; and the 2nd Benin-Onitsha
Transmission substation reinforcement projects are continuing at various locations in the country. This reinforcement programme when concluded, should yield an additional 960mva capacity to the existing 5510mva. The distribution network has not been left out as an additional 680mva capacity of substations and injection stations have been commissioned nationwide.
About 4000 distribution transformers and 177 power distribution transformers have been ordered and have recently begun arriving at the ports. These transformers, when installed and commissioned, will add a further 3000mva capacity to the distribution network.
With these projects in place the power situation ought to improve very significantly from the state in which it was at the inception of this Administration, where massive load shedding due to generation insufficiency was the order of the day. By the end of this year, with 4000mw available generation, we expect that there will no longer be any interruptions due to load shedding. That is the essence of our promise!
As is the case all over the world, we may still expect occasional interruptions arising from factors other than load shedding, such as: faults and equipment failures; accidents; vandalism; routine maintenance of infrastructure. But let me say again that there will however be no interruptions due to load shedding. We are also working to reduce the frequency of equipment failures, accidents, system collapse and vandalism. Any act of sabotage will incur maximum punishment.
With all the measures in place, we will be in a position to manage emergencies of interruption in power in supply. Accordingly, NEPA management have been instructed to issue warning of possible outages, or, where unforseen outages occur, to inform the public when to expect restoration. This will be part of the revamped public image of NEPA to match its obligation to consumers.
We are, of course, mindful of the huge energy requirements of the country and the enormous resources that must be committed to meet these requirements. We have consequently made some provision in the year 2002 Budget for additional generation as well as transmission and distribution network reinforcement. These programmes will further ensure stability and reliability of supply. By the end of 2002 we anticipate that we will be able to generate, transmit and distribute 5000mw, to be followed by 7000mw by the end of 2003. This is the way we can keep up with the projected rise in demand.
The subsidy on electricity is currently in excess of 100 percent And is still growing! On top of that, there is the deplorable revenue collection rate of less than fifty per cent of what is due from consumers. This excessive loss in the cost of power production is not sustainable and cannot continue. It is imperative that the situation be addressed soon and effectively, not only to consolidate the gains we have made so far, but also to drive future growth of the sector by making it more attractive for private sector investment. We thus intend to vigorously pursue sector reform aimed at privatization and deregulation.
Our commitment to reform has been clearly demonstrated by the approval by the Federal Executive Council, of an Electricity Policy and, more recently, the draft Electricity Bill, all within a period of less than twelve months.
Let me use this opportunity to commend all those who contributed in one way or the other to the successful implementation of this project. They all deserve to be praised for being able to complete this 276mw power station in a record time of ten months from the date of physical mobilization to site.
This occasion is apt to commend the efforts of all those who have contributed to the countdown out of darkness in the country. Our special appreciation goes to the Chairman and members of the NEPA Technical Board which, though established in relative darkness, was given the assignment to bring us light. Most of all, let us thank the Almighty, in whose name and on whose behalf we are able to say ‘Let there be light in Nigeria!’
I thank you. And may God bless you all.