Nigeria Signs 118 Billion Dollar Contract to Improve Electricity Distribution

The Nigerian government under the supervision of the Federal Ministry of Power, the Elsewedy and Power China have signed a contract of 118,148,469.72 Us dollars for the construction and rehabilitation of 2670 kilometers of 33kv, 11kv and 400v distribution lines in Nigeria.

The project under the Presidential Power Initiative (PPI) is designed to complement the ongoing mid-stream transmission projects to secure power delivery and upgrade of distribution network aimed at increasing electricity reliability and accessibility for millions of Nigerians in the country.

Speaking during the signing, the Minister of Power, Mr. Adebayo Adelabu, said that the project is aimed at complementing the ongoing mid-stream Transmission projects to secure power delivery.

According to the Minister, the Power sector has received 10 power transformers and 10 mobile substations from SIEMENS Energy.

“These are being deployed at key sites across the country to increase transmission capacity constraints in the transmission sector by over 1,300MW”

“Notable sites include Okene, Amukpe, Potiskum, Apo, Ihovbor, Birnin Kebbi, Ajah, Nike Lake, Kwanar Dangora, Maryland, Omouaran, Ojo, among others” he said .

Mr. Adelabu, further expressed enthusiasm about the partnership stressing that the project marks a significant step towards achieving a reliable and sustainable electricity for all Nigerians.

“We are committed to working with top-tier partners like Elsewedy and Power China to deliver on this promise.”

The Managing Director, FGN, Power Company, Mr Kenny Anuwe, said “We are delighted to partner with Elsewedy and Power China on this transformative project”

“Their proven expertise and commitment to excellence make them ideal partners for delivering this critical infrastructure. Siemens, known for its strengths in advanced technology and innovation, does not specialise in distribution lines.”

He stated that the partnership is a strategic decision with Elsewedy, bearing in mind the successful collaboration between both companies in Egypt.

“This partnership with Elsewedy Electric will ensure the highest quality and efficiency in delivering the necessary infrastructure”

“Together, we will combine our strengths and deliver comprehensive solutions to meet Nigeria’s growing energy and infrastructure needs.”

Mr. Anuwe disclosed that the project will also provide construction of over 687 kilometres of new distribution lines (greenfield) and the rehabilitation of 1,983 kilometres of existing lines (brownfield).

Regulatory requirements

He said FGNPC has worked closely with Enugu and Benin DisCos and the Nigerian Electricity Regulatory Commission (NERC) to develop a comprehensive project definition aligned with industry standards and regulatory requirements.

Also, Country Manager at Elsewedy, Mr Islam Isharawy, emphasised saying “We are honoured to contribute our expertise to Nigeria’s ambitious energy goals.

This project according Isharawy, represents a significant opportunity to upgrade Nigeria’s power distribution infrastructure.”

Earlier, the Vice President for Central and West Africa at Power China, Mr. Tino Dong, said Power China believes in the President’s vision for the power sector and is committed to high-quality and reliable power solutions as part of the Company’s interventions.

“We look forward to a successful collaboration with FGNPC and Elsewedy to bring improved power distribution to Nigeria.” He said.

FGN Power Company, FGNPC is a Special Purpose Vehicle (SPV) mandated to implement the Presidential Power Initiative (PPI).

FGN Power Company was established in pursuit of a lasting solution to Nigeria’s electricity challenges,

The Presidential Power Initiative (PPI) was conceived during a meeting between the President of the Federal Republic of Nigeria, Muhammadu Buhari and German Chancellor, Angela Merkel on August 31, 2018.

The FGN Power Company is also a special purpose vehicle to secure financing, effectively coordinate stakeholders, enter into commercial and contractual arrangements to implement the PPI.

FGNPC’s mission is to address infrastructural gaps by investing in end-to-end solutions that will deliver reliable and incremental energy to customers in Nigeria.

 

Olusola Akintonde