Ajibola Abayomi

Lagos — The replacement insurance on Nigeria Communication Satellite 1 (NIGCOMSAT 1) has been valued at $46 billion.

satelliteThis was disclosed in an interview with Daily Independent in Lagos by the managing director of Nigeria NIGCOMSAT), Timasaniyu Ahmed-Rufai.

Speaking on criticism against government over the non-functioning of satellite installed during the regime of ex-president Oluseguun Obasanjo, Ahmed-Rufai argued that the failure of SAT 1 was not peculiar to Nigeria or the fault of the Chinese firm that put the satellite in orbit, but was due to an international crisis.

The NigComSat-1 was launched on May 13, 2007 and was sub-Saharan Africa’s first communications satellite.

NigComSat-1 provided a backbone for both upstream and downstream telecommunication services.

He said the SAT 1 replacement would be commissioned in September 2011 saying work on the satellite was almost complete.

Reiterating his optimism that the SAT 1 would function effectively when commissioned, he disclosed that the space engineers “contacted to manage the satellite for the country had signed a replacement insurance valued at $46 billion should anything go wrong this time around.”

“These are space engineer experts from America, Britain and Russia, the risk analysis has been done, for Nigeria to invest N256 billion is no joke” he said.

Source: independentngonline.com/ Image: spacetoday.com

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Moses Michira

Nairobi — The government will link investors in the energy sector with the World Bank and the International Monetary Fund for funding.

financeFinance minister Uhuru Kenyatta said Treasury was keen on reigning in public debt and would not give the investors any guarantees on funding, a position that contradicts a cabinet approval of financial backing for firms involved in electricity generation.

He said the government would talk to the Bretton Woods institutions to facilitate securing alternative credit risk underwriting.

“We have established an inter-ministerial committee with World Bank and IFC participation to assist investors secure available alternative risk mitigation products,” he said.

It is the first time that Treasury has publicly stated its refusal to extend sovereign guarantees to developers in the power sector, after it emerged last month that the Ministry of Finance was not comfortable with the cabinet position announced in mid September. The reversal in policy is likely to dent Kenya’s capacity to generate power to meet the rising demand.

Mr Kenyatta told private investors they will have to turn to risk underwriters as Treasury was keen on reigning in public debt. “As a government, we have to ensure that we maintain macro-economic stability and also our public debt at a sustainable level,” he said, adding; “It is imperative for players in the energy infrastructure to think beyond conventional approaches to raising finances.”

Kenya’s rising demand for energy is linked to growing economic activity, with annual power consumption expected to hit 1,620 megawatts (MW) by 2012 from the current peak demand of 1072 MW.

Source: businessdailyafrica.com/                    Image: ibtimes.com

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Mohammed S. Shehu

President Goodluck Jonathan said that due to the perennial epileptic power supply, Nigerians expends about $13 billion every year to source power from diesel generators even when the country requires only about $10 billion per year in investment to develop its generation, distribution and transmission capacities.

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