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FG Validates Manitoba’s Power-Mangement Contract

By on November 22, 2012

Manitoba-Hydro HQ Canada

The Federal Government validated a power-management contract signed by Canada’s Manitoba Hydro Electric Board in July to run the state-owned power utility Transmission Co. of Nigeria after regulatory approval, the Bureau of Public Enterprises, the privatization agency, said.

“We have received ratification from the Bureau of Public Procurement and the contract has been certified,” Chukwuma Nwokoh, a spokesman for the Abuja-based privatization agency said by phone today. Under Nigerian laws, all contracts entered into by the government needs to be certified by the Bureau of Public Procurement.

Reuben Abati, a spokesman for President Goodluck Jonathan, on Nov. 14 announced the cancellation of the contract saying the correct procedure wasn’t followed. Manitoba “did not follow the law strictly” and initial report of the termination was a “misunderstanding,” Jonathan said on Nov. 18 in an interview broadcast on state-rub television NTA

Nigeria, Africa’s top oil producer, is selling majority stakes in power plants and letting private investors buy as much as 60 percent of 11 distribution companies spun out of the former state-owned utility as it seeks private investment to curb power shortages. Blackouts are a daily occurrence in Nigeria, Africa’s most populous country with more than 160 million people. Demand for electricity in Nigeria is almost double the supply of about 4,000 megawatts and the government plans to boost output to 14,019 megawatts by 2013.

Bids worth more than $2 billion by companies including Siemens AG (SIE) and Korea Electric Power Corp. (KEP) were approved by the government for the sale of the companies on Oct. 30.

 

Source: Bloomberg

3 Comments

  1. Akintola Mutiu Olalekan

    November 22, 2012 at 11:46 am

    Wil this guaranty regular supply of electricity? If yes carry on but if no think twice before getting into wrong side of people Mr President

  2. Bio

    November 22, 2012 at 3:35 pm

    14000MW can never be enough for Nigeria. The population in South Africa is over 40million and they have 40,000MW and they still have power outage, hence for Nigeria, we need a minimum of 150,000MW to have uninterrupted power supply. So pls lets stop this political talks.

    • sammy

      November 22, 2012 at 7:53 pm

      Govt said that they are targeting 14000MW by 2013 not that the MW is what is needed in the country. Its a projection. When u read, seek to understand.