FG Closes $463m Deal to Improve Power Distribution Lines

  • This agreement aims to upgrade the distribution lines infrastructure under Lot Three of the PPI, covering the regions served by Jos, Kano, Abuja, and Kaduna DisCos.
  • The agreement would increase energy availability to families and businesses nationwide.

The Ministry of Power has closed a $463 million contract with a Chinese consortium to improve power distribution lines. They said the China Exim Bank would finance the deal because it contained both off-shore and significant on-shore components. In a statement by the Special Adviser for Strategic Communication and Media Relations to the Minister of Power, Bolaji Tunji, the ministry stated that the agreement would increase energy availability to families and businesses nationwide.

According to the release, the FGN Power Company signed the Memorandum of Understanding, the special purpose organisation responsible for implementing the Presidential Power Initiative on behalf of the Federal Ministry of Power and a Chinese consortium. China Civil Engineering Construction and TBEA Energy were supposed to be part of the consortium.

The statement read in part, “This agreement aims at upgrading the distribution lines infrastructure under Lot Three of the PPI, which encompasses the regions served by Jos, Kano, Abuja, and Kaduna distribution companies. The signing ceremony occurred in Beijing, China, during the third Belt and Road Initiative event. The Transmission Company of Nigeria, CCECC, and TBEA signed a similar MoU to build a power sector super grid.”

According to the release, CCECC and TBEA entertained the Minister of Power, Adebayo Adelabu, and his team. Liu Wiemin, Global Chairman of CCECC, which has been functioning in Nigeria for the past 42 years and Huang Hanjie, Global President of TBEA, led the presentation.

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