FEC okays $64m contract for Escravos power supply

THE Federal Executive Council (FEC) meeting yesterday approved $64 million for power supply to Escravos communities.

Minister of State for Petroleum Resources Ibe Kachikwu made this known at the end of the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

He was with the Senior Special Assistant to the President on Media and Publicity Garba Shehu and the Minister of Water Resources Suleiman Adamu.

According to Kachikwu, if executed, it would stop the N18 million spent monthly by the Nigerian National Petroleum Corporation (NNPC) to provide power to the area.

He said: “What we took to the council today was to seek approval for the award of contract for supply of power to the contiguous communities around the Escravos areas.

“We had approvals earlier to do the Escravos to Lagos Pipeline system. It was then stalled following protest by the community over the plan to move 50 per cent of the gas to provide power to other areas when the communities did not have power.

“Today, council approved $64 million to fund two lots. One to build the power plant to supply power itself and the other to distribute the power to all the affected communities.

“Council granted approval in two lots. With this, we believe power will now be provided for the communities within four or five years and become a permanent structure.

“The only way we have been able to maintain peace in the communities was to use generators to supply power, which had been costing NNPC about N18 million every month to manage.”

Shehu said FEC also approved three memos for the Economic and Financial Crimes Commission (EFCC).

According to him, EFCC got N500 million approval for facility maintenance service for its new 10-story building.

Shehu added that EFCC also got N459 million approval for procurement of 700 computers, 100 laptops and 25 laser printers.

The third memo for EFCC, he said, was approval for the purchase of 15 utility vehicles.

“They are expanding and need the vehicles for their operations. All the vehicles are from local assembly plants,” he said

FEC, he said, also approved five water patrol boats for the Nigerian Ports Authority, Marina, Lagos.

“This is for coastline security,” he stated

Adamu said that the council also approved the revised total estimated cost for the complete rehabilitation of the Cham dam and development of 100 hectares of irrigation in Balanga Local Government Area, Gombe State.

He said: “This is part of our efforts to complete projects we inherited which started in 2011 and suffered from supply of funds. Work stopped at about 65% completion, but we need to complete it so we renegotiated the project with the contractors.

“We, therefore, brought request for augmentation for N612 million. The project is being handled by the Upper Benue River Basin Development Authority. It was originally constructed in 1982. It had to be reconstructed. The original contract cost was N832 million in 2011.”

Adamu said the latest flood data indicated that the worst is over as the water level at Lokoja and Lagdo Dam in Cameroun dropped significantly.

According to the minister, the water level at Lokoja has dropped by six centimetres, while that of Lagdo Dam has continued to go down.

“I was able to brief Council on the latest flood data. I was happy to report to council that as at Saturday, the water level at Lokoja had dropped by six centimetres and is still going down. The water level in Lagdo Dam in Cameroun is also going down.”

The Council Chamber was scanty when Osinbajo chaired the weekly meeting.

Only fourteen ministers were in the Council chamber when the meeting started with the rendition of the national anthem at 11a.m.