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Centrality of Water in National Development

VIEWS: 13 PAGES: 51

									              By:
H.E. Ambassador (Dr) G.B. Igali, OON
 Permanent Secretary, Ministry of Water Resources
   FEDERAL MINISTRY OF WATER RESOURCES
      Presentation Outline
1)    Background
2)    The Strategic Positioning of the Ministry
3)    Dams and Electricity in Nigeria
4)    Nigeria Water Resources
5)    Status of Hydro-power Dams
6)    Dams Statistics
7)    Investments In The Hydro-Power Sector
8)    Challenges to Infrastructure Development
9)    Private Sector Participation through Public Private
      Partnership (PPP)
10)   Benefit of Private Sector Partnership
11)   Conclusion

         FEDERAL MINISTRY OF WATER RESOURCES
 1. Background

 By the Decree No 101 of 23rd August 1993 (which was converted to
  Act of Parliament during the present democratic process in 1999)
  the right to the control and use of all surface and groundwater
  resources and of all water in any water course affecting more
  than one state, together with the bed and banks thereof, are
  vested in the Government of the Federation.




                 Fed Ministry of Water Resources                     3
Background Cont.
 The rights to take and use such water for personal development
  and commercial purposes may be provided to any person or
  public authority in accordance with the regulations made
  pursuant therefore.
 These rights are vested on the Minister of Water Resources who
  is to provide licence to the eligible persons or bodies.
 The development of hydraulic structures within river catchment
  areas for multipurpose use is crucial to the development of the
  nation and this has been the main focus of this Ministry.




             Fed MINISTRY OF
       FEDERAL Ministry of Water Resources WATER RESOURCES          4
Background Cont.
 As a matter of policy, the Federal Ministry of Water Resources
  intends to install hydropower facility to all dams that possess the
  potential to generate some electricity.
 All new dams to be constructed for multipurpose use will have a
  hydropower component.
 In coal rich areas of Nigeria (Enugu, Kogi, Benue, Nassarawa
  etc), it is also the intention of the Ministry to construct dams to
  provide the water which is required in the process of generation
  of electricity.
 This is due to the fact that water is one of the most important
  components of the Thermal power generation through coal.


        FEDERAL MINISTRY OF WATER RESOURCES                             5
2. The Strategic Positioning of the Ministry
  Control of Water Resources
   In accordance with the provisions of the Decree (Act) the
    Honourable Minister shall have power to:
   a) Define the places from which or the manner in which and the
    times at which such water may be taken or used;
   b) Fix in times of actual or anticipated shortage of water, the
    amount which may be taken by any person for such purpose;
   Prohibit temporarily or permanent the taking or use of water
    from any source for such purpose, when in his/her opinion, the
    taking or use of such water would be hazardous to health;




          FEDERAL MINISTRY OF WATER RESOURCES                         6
Control of Water Resources Contd.
 Prohibit temporarily or permanent the taking or use of water
  from any source for such purpose, when in his/her opinion, the
  taking or use of such water would be hazardous to health;
 Revoke a right to use or take water when such a right is likely to
  override the public interest; etc.
 The development (construction) of hydraulic structures is fully
  captured in the Decree (Act), and such development must be in
  accordance with the guidelines and regulations provided for the
  implementation of the provisions of the Decree (Act).




        FEDERAL MINISTRY OF WATER RESOURCES                            7
Policy Objectives
 The Policy Objectives in the current national water policy as it
    relates to Dams and Reservoirs is therefore:
   To ensure proper harnessing and utilisation of the vast water
    resources of the nation
    To de-emphasise building large dams because of high cost of
    downstream infrastructural facilities as well as high
    environmental consequences
   To ensure that water impounded behind dams is fully utilised for
    its intended purposes
   To emphasise the building of small and medium dams in
    locations where feasible because of low capital costs, easy to
    maintain and cheaper to manage compared to large dams



        FEDERAL MINISTRY OF RESOURCES
       FEDERAL MINISTRY OF WATERWATER RESOURCES                        8
3. Dams and Electricity in Nigeria
 Prior to the promulgation of the Decree or enactment of this Act,
  Dam construction was conceived primarily for the provision of
  electricity which was vital to national development at the time.
 The Government then undertook these projects through
  Electricity Corporation of Nigeria (E.C.N) which had some
  Electrical Engineers, Geologists, Hydrologists and Mechanical
  Engineers that worked in collaboration with foreign companies
  to construct the dams.
 With the creation of the Federal Ministry of Water Resources in
  the mid 1970s and the enactment of the appropriate Act, the
  Ministry is equipped with the relevant dam experts to supervise
  and manage the construction of dams for all purposes.



                                                                      9
Dams and Electricity in Nigeria cont.
 The Federal Ministry of Water Resources, by the Act of
  Parliament is statutory responsible for the control, development
  and use of all surface and groundwater resources and of all water
  in any water course affecting more than one state, together with
  the bed and banks thereof.
 The development of hydraulic structures within river catchment
  areas for multipurpose use is crucial to the development of the
  nation and this has been the main focus of this Ministry.
 In line with the present Government drive to produce enough
  power for industrial development and economic stability of the
  nation, the Ministry is reorienting its programme in this
  direction.


              Fed MINISTRY OF
        FEDERAL Ministry of Water Resources WATER RESOURCES           10
Dams and Electricity in Nigeria cont.
 Hydroelectric power plays a major role in shaping the
  socioeconomic and political life of the world.
 Substantial clean and renewable energy comes from this source.
  The development of this vital sector in Nigeria and indeed most
  parts of Africa has so far been unsatisfactory resulting in
  crippling power outages affecting production and economic life
  as a whole.




       FEDERAL MINISTRY OF WATER RESOURCES                          11
4. Nigerian Water Resource
 Nigeria has abundant renewable energy sources and water
  resources in the form of rivers, lakes and oceans. The land is well
  drained by perennial rivers. The water resources and potential is
  estimated about 267.3 billion cubic meters of surface water about
  92.0 billion cubic meters of ground water per annum.




       FEDERAL MINISTRY OF WATER RESOURCES                          12
Surface and Ground Water
The water resources
and its potential            Water Resources Potential
estimates stand at:                 267 Billion
                                   Cubic Meters
•267.3 billion cubic   300
meters of surface      250
water                  200                             92 Billion Cubic
                                                           Meters
•92.0 billion cubic    150
                       100
meters of ground
                        50
water per annum.
                         0
                             Surface Water        Ground Water




      FEDERAL MINISTRY OF WATER RESOURCES                                 13
Surface and Ground Water Cont.
 However, these resources have remained largely unexploited and
  managed in an uncoordinated and integrated manner. Therefore
  the power supply needs of the country are difficult to achieve.
 It is envisaged that when the water resources potential which
  have remained largely unexploited are harnessed in a
  coordinated and integrated way, they could satisfy all
  agricultural and other water demand including a significant
  contribution to power supply of the country.




       FEDERAL MINISTRY OF WATER RESOURCES                          14
Vast Untapped Water Resource
 The major rivers in Nigeria and their tributaries provide a vast
  hydropower potential for country. This is estimated to be
  equivalent to about 50,000MW, but the technically exploited
  potential is estimated at 35,000MW.
 The hydro potential is mostly limited by the intermittent nature
  of Nigerian river flows, which have high water discharges during
  the rainy season and very low discharge in the dry season.
 To regulate the flow, dams are constructed across some of these
  rivers for irrigation, water supply and hydropower purposes.
  Dam development received tremendous encouragement in the
  1970s, with increased revenue from petroleum.
 Many of our dams have varied capacities for hydropower
  generation totalling about 3,860MW and are currently under-
  utilized.

        FEDERAL MINISTRY OF WATER RESOURCES                          15
5. Status of Hydro-Power Dams
 This country is well blessed with water everywhere. At present,
  there are over 200 existing dams. From which 20 have been
  developed for hydro-electric capabilities.
 The potentials of this country in the development of new dams
  would be encouraged particularly under PPP arrangements and
  with total government support.
 This is history in the making and there is no going back. The
  focus will be on maintaining these dams effectively for the
  purpose of generating electricity, for the purpose of providing
  irrigation and for the purpose of flood control.




        FEDERAL MINISTRY OF WATER RESOURCES                         16
Existing Dams Hydro-power Capacity
                                   Present Hydro-Electric Capability of Dams in MW
 35                         34MW



                                       30MW
 30




 25

                                                                                                                      22MW

      20MW
 20




 15




 10                                                                                           9MW


                                                    6MW   6MW                                             6MW

  5
                                                                3MW   3MW                           3MW         3MW
                                                                            2MW
                      1MW
             0.15MW            0.125MW        0MW                                 0MW   0MW                                  0MW
  0




                                      Fed Ministry of Water Resources                                                              17
 Dam Hydro-power Optimization
                                                                     Possible        Amount
                                                                  Capacity With Required For Amount Required
                                                                    Improved      installing Dam    for Installing
                                           Dam        Current        Turbine       Hydro-power Improved Turbine
                             State      Completion    Capacity     Technology      Components Technology in Dams
S/N       Name of Project   Location      Level %    Mega Watts       (MW)        (Million Naira)  (Million Naira)
     1 Gurara Dam         KADUNA                 100           30              30                0                   0
     2 Oyan Dam           OGUN                   100            9           13.5              1026                1539    6
     3 Ikere Gorge Dam    OYO                    100            6               9              684                1026    6
     4 Bakolori Dam       SOKOTO                 100            3             4.5              342                 513   12
     5 Dadin Kowa Dam     GOMBE                  100           34              51             3876                5814   18
     6 Tiga Dam           KANO                   100            6               9              684                1026   12
     7 Kiri Dam           ADAMAWA                100           20              20             2280                2280   18
     8 Jibiya Dam         KATSINA                100            3             4.5              342                 513   18
     9 Challawa Gorge Dam KANO                   100            6               9              684                1026   12
    10 Owena Dam          ONDO                   100            3             4.5              342                 513   18
    11 Doma Dam           NASARAWA               100            0               0                0                   0   18
    12 Waya Dam           BAUCHI                 100        0.15           0.225              17.1               25.65    3
    13 Mbowo Dam          IMO                     98       0.125            0.19             14.25               21.66    3
    14 Zobe Dam           KATSINA                100            3             4.5              342                 513   12
    15 Kampe Dam          KOGI                   100            2               3              228                 342   12
    16 Kashimbilla Dam    TARABA       ONGOING                 22              40                0                   0   30
    17 Ogwashiku Dam      DELTA                   25            1             1.5              152                 171   24
    18                    Total Naira Amount Needed for Dam Optimization in Million Naira                      15,323




                 FEDERAL MINISTRY OF WATER RESOURCES                                                                     18
Planned Hydro-Power Targets

              Dams Electricity Capability in MW
                                                             7,000MW

       7000
       6000
                                           3,860MW
       5000
       4000
       3000
       2000
                       148MW
       1000
         0
               Present Capacity     Capacity When     Capacity when
                                  Dams are Improved   more dams are
                                                          built




              Fed Ministry of Water Resources                          19
       6. Dam Statistics




FEDERAL MINISTRY OF WATER RESOURCES   20
9 MW




       21
Fed Ministry of Water Resources   22
Fed Ministry of Water Resources   23
6MW




      24
(34MW)
,




         25
(30MW),




          26
27
(150 KW) Power Plant




                       28
(3MW),




         29
(12MW),




          30
(6MW
),




       31
(3MW),




         32
(3MW),




         33
        KAMPE--



KAMPE




                  (2MW),




                           34
35
(2600MW) Power Plant




                       36
Some Proposed Hydro-Power Schemes
       Identified Future Dams with Hydro-Power Capacity
       Name of Dams       River Situated on  Capacity MW
       Makurdi Dam        Benue                        1010
       Onitsha Dam        Niger                         750
       Ikom Dam           Cross                         730
       Yola Dam           Benue                         360
       Beji Dam           Taraba                        240
       Donka Dam          Niger                         225
       Lokoja Dam         Niger                         200
       Afikpo Dam         Cross                         180
       Garin Dali Dam     Cross                         180
       Gembu Dam          Donga                         130
       Karamti Dam        Kam                           115
       Sarkin Danko Dam Sunti                            45
       Gudi Dam           Made                           40
       Koroubo Dam        Gongola                        35
       Richai Dam         Mosari                         35
       Dadin Kowa Dam Gongola                            34
       Gwaram Dam         Jamaare                        30
       Ifon Dam           Osse                           30
       Okpara Dam         Oji                            30
       Total Capacity                                  4399

          Fed MINISTRY OF
    FEDERAL Ministry of Water Resources WATER RESOURCES       37
                           Some Identified Future Dams
   Installed Capacity MW
1200


1000


800


600


400


200


  0




       FEDERAL MINISTRY OF WATER RESOURCES               38
7. Investments In The Hydro-Power
Sector
 Government has been the key provider of funds for the
  development of infrastructure within the sector. However, the
  government cannot do it alone and so require the active
  participation of the private sector in the development of the
  sector.
Privatization of Electric Power Sector
 The privatization of energy has been part and parcel of a recent
  world trend, which places greater reliance on market forces and
  less dependence on government in the allocation of resources.




              Fed MINISTRY OF
        FEDERAL Ministry of Water Resources WATER RESOURCES          39
Investments In The Hydro-Power
Sector Cont.
 The ongoing holistic reform of the electricity industry is
  expected to bring about improvement and reliability in service
  delivery.
 The Federal Government has set targets for holistic generation
  capacity of 10,000MW in 2010 and 20,000MW in 2015.
 Heavy capital investment required to meet this need has been
  estimated at over $15 billion.




        FEDERAL MINISTRY OF WATER RESOURCES                        40
8. Challenges to Infrastructure
Development
 A major challenge to the actualization of the various potentials
    of the hydro-power sector is funding and the enormous capital
    required cannot be provided by the Federal Government alone.
   Population growth
   Economic growth
   Insufficient and poorly planned public sector infrastructure
   Ageing and deteriorating infrastructure
   Poor maintenance culture and lack of expertise
   Increased infrastructural development cost



         FEDERAL MINISTRY OF WATER RESOURCES                         41
9. Private Sector Participation through
Public Private Partnership (PPP)
 It is however, a known fact that the Federal Government cannot
  single-handedly fund the sector. In view of this, the present
  reform is expected to usher in private investment thus reducing
  governments funding and control of the sector.
 Some of the actions planned include rehabilitation of plants
  through private sector initiatives; private financing of new
  generation Build, Own, Operate (BOO); Build, Own, Operate,
  Transfer (BOOT) to be encouraged etc. The World Bank and the
  United States Agency for International Development-Office of
  Training Initiatives (USAID-DTI) have shown keen interest in
  this programme.


       FEDERAL MINISTRY OF WATER RESOURCES                          42
 Government Initiatives on PPP
 The Federal Ministry of Water Resources recognizes the
  absolutely necessity to address the infrastructural gaps through
  incorporating PPP best practices in the procurement of our
  hydro-power dam.
 The Ministry recently unveiled its Road Map of the Water Sector
  to help re-position the Federal Ministry of Water Resources to
  achieve the set agenda of Federal Government in this critical
  sector, and to keep on tracks with the Millennium Development
  Goals in water.
 Establishment of Infrastructure Concession and Regulatory
  Commission (ICRC) to provide the regulatory and institutional
  framework for the Ministry and its Agencies towards adoption of
  PPP practices.



       FEDERAL MINISTRY OF WATER RESOURCES                           43
Government Initiatives on PPP Cont.
 This in effect will address the water infrastructures deficiency
  and the need to attract private sector initiatives in terms of
  funding and technical expertise.
 In his address at the recent Presidential Summit on Water, 17th
  January, 2011, President Goodluck Jonathan, GCFR, directed that,
  “The Infrastructure Concession and Regulatory Commission
  (ICRC), Bureau of Public Enterprise 22
 (BPE) and the Ministry of Water Resources should therefore in
  line with this roadmap work out the needed regulatory
  framework, particularly the private sector participation in the
  water sector”.
 There is therefore no other choice for the Ministry than to
  incorporate PPP options in this sub-sectoral development of our
  water resources.


         FEDERAL MINISTRY OF WATER RESOURCES                         44
Enabling Frameworks for Private
Sector Partnership (PSP)
A. Legal Framework:
 To ensure public authorities can enter into agreement for the
  implementation of privately financed initiative (PFI)
 The Privatisation and Commercialisation Act 1999
 The Infrastructure Concession Regulatory Commission Act 2005
 Public Procurement Act 2007




       FEDERAL MINISTRY OF WATER RESOURCES                        45
Enabling Frameworks for PSP Cont.
B. Financial Framework:
 To ensure the Ministry, Departments and Agencies (MDAs) have
  the capacity to carry out economic appraisals of projects and
  plan a national 15-year investment strategy.
 To ensure enough liquidity is made available to investors for PP
  projects.
 To develop new specialised funds and secondary markets for
  additional sources of funds for PPP projects

C. Institutional framework:
 The provision of appropriate guidance, training and resources to
  plan, procure and manage investment projects and public
  services effectively and efficiently
 Providing expertise for ensure Value For Money on public sector
  projects.

        FEDERAL MINISTRY OF WATER RESOURCES                          46
10. Benefit of Private Sector Partnership
   Creates Value For Money for the public
   High return on investment for the private sector
   Long term contracts in a sector with guaranteed revenue source
   Stable cash flow and returns through the concession period
   Participating in new market previously accessible to only public
      sector monopoly
     Development of mature secondary market to assist in sourcing
      for funds
     Risk is shared with the public sector and not just with the
      investors
     Opportunity to build capacity
     Opportunity to build relationship with government



           FEDERAL MINISTRY OF WATER RESOURCES                         47
Benefit of PSP Cont.
 Provides a Win-Win for both the Public sector and the private
  sector .
 Increase in population will translate to increased power
  requirement s.
                    Forecast of Growth in Nigeria's Population
                                              Population. Source: UNFPA


                                                                    289,000,000

                                                      225,000,000
                                        210,000,000
                          178,000,000
            150,000,000




                 2011         2015         2020          2025          2050




        FEDERAL MINISTRY OF WATER RESOURCES                                       48
11. Conclusion
 Nigeria has enormous surface water
 resources which is controlled by favourably
 arranged network of rivers and streams for
 Energy harnessing and development.

 These rivers and streams have hydropower
 potentials of more than 10,000MW using
 modern technologies in power generation.


    FEDERAL MINISTRY OF WATER RESOURCES
11. Conclusion (contd).
 The Federal Government at this time has focused
  more attention on Hydro-Power development with
  keen interest in the honest and honest and effective
  participation of the private sector.




              Fed Ministry of Water Resources            50
      Fed MINISTRY
FEDERAL Min of Water Resources OF WATER RESOURCES   51

								
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