By Ossom Raphael
The Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki has put the capital expenditure (CAPEX) requirement of the Nigeria electric power sector in the next five years at US$23.9 billion.
He revealed this in a presentation to the International Conference on Private Sector Financing/Support of the Power Sector held at the Banquet Hall of the Presidential Villa, Abuja on Monday February 10.
He said the distribution companies (DISCOs) alone will require about US$1.8 billion in capital expenditure in the next five years for optimal performance.
He noted that the Transmission Company of Nigeria (TCN) requires about US$2.4 billion to increase power transfer capacity, make the network more stable and reliable, and improve efficiency of electric power transfer by reducing transmission technical losses; adding that it will also enable TCN to increase transmission capacity to 16843MW by the end of 2018.
He stated that US$11.7 billion is the CAPEX Funding Requirements for the privatised PHCN Successor Gencos to ramp up and expand capacity. This does not include the requirements of prospective green field and ongoing IPPs.
He said the breakdown as gleaned from the post-acquisition plans submitted by the investors are as follows:
• Ughelli Power Plc: US$ 604.0 M
• Sapele Power Plc US$ 394.0 M
• Geregu Power Plc US$ 200.0 M
• Afam Power Plc US$ 850.0 M
• Kainji Hydro US$ 456.0 M
• Egbin Power Plc US$ 1700.0 M
• Green Field IPP US$ 7, 500 M
He further noted that “Gas Industry sources estimates that US$1.5 Billion will be required annually for the next 5 years if we are to address gas challenges in the power sector. “In other words a total of US$7.5 Billion is required in the next 5 years for gas infrastructure.”