According to Kachikwu, if executed, the project would stop the N18 million spent monthly by the Nigerian National Petroleum Corporation (NNPC) to provide power to the area.
The Federal Executive Council (FEC) has approved $64 million for power supply to Escravos communities.
Ibe Kachikwu, Minister of State for Petroleum Resources, made this known at the end of the FEC meeting chaired by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja, on Wednesday.
According to Kachikwu, if executed, the project would stop the N18 million spent monthly by the Nigerian National Petroleum Corporation (NNPC) to provide power to the area.
He said: “What we took to the council today was to seek approval for the award of contract for supply of power to the contiguous communities around the Escravos areas.
“We had approvals earlier to do the Escravos to Lagos Pipeline system. It was then stalled, following protest 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 million to fund two lots. One 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.
“The only way we have been able to maintain peace in the communities was to use generators to supply power, which had been costing NNPC about N18 million every month to manage.”