The Federal Government has approved $64.2m for the power project in Escravos communities in Warri South Local Government Area of Delta State.
The approval was granted at the Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo at the State House yesterday.
Speaking with journalists on some of the outcomes of the meeting, the Minister of State for Petroleum Resources, Ibe Kachikwu, said if executed, the Escravos power project would put an end to the N18m being spent monthly by the Nigerian National Petroleum Corporation to provide power to the area.
He gave an assurance that the project would provide electricity for the communities within four or five years and become a permanent structure.
He stated, “What we took to the council today was to seek approval for the award of a contract for the supply of power to the contiguous communities around the Escravos areas. We had approval earlier to do the Escravos to Lagos pipeline system.
“It was then stalled following protests 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 $64.2m to fund two lots. One is 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.”
Kachikwu said the only way the government had been able to maintain peace in the communities “was to use generators to supply power, which had been costing the NNPC about N18m every month to manage.”