FGNPC Secures $118M Power Upgrade Deal

  • FGNPC secured a $118 million contract with Elsewedy and Power China to rehabilitate and construct 2,670 km of distribution lines.
  • The initiative includes 33kV, 11kV, and 400V lines to improve power delivery to Nigeria’s residential, commercial, and industrial sectors.
  • FGNPC collaborates with Elsewedy and Power China to enhance Nigeria’s power distribution infrastructure, aligning with the Presidential Power Initiative.

FGN Power Company (FGNPC) has secured a significant Engineering, Procurement, Construction, and Financing (EPC&F) contract with Elsewedy and Power China, valued at $118,148,469.72. The agreement, announced on July 31, targets the rehabilitation and construction of 2,670 kilometres of distribution lines as part of Phase I of the Presidential Power Initiative (PPI).

This project includes 33kV, 11kV, and 400V distribution lines and aims to enhance ongoing mid-stream transmission efforts, improving power delivery to residential, commercial, and industrial sectors across Nigeria. The initiative will significantly boost electricity reliability and accessibility for millions of Nigerians.

Bolaji Tunji, media aide to the Minister of Power, disclosed the contract details. FGNPC, a Special Purpose Vehicle (SPV) established to implement the PPI, addresses infrastructural gaps by investing in comprehensive solutions to deliver reliable energy nationwide.

Chief Adebayo Adelabu, Minister of Power, expressed enthusiasm for the partnership, stating, “This project marks a significant step towards achieving our goal of reliable and sustainable electricity for all Nigerians. We commit to working with top-tier partners like Elsewedy and Power China to deliver on this promise.”

FGNPC Managing Director Kenny Anuwe highlighted the strategic choice of partners, noting, “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.

While strong in advanced technology and innovation, Siemens does not specialise in distribution lines. Hence, the collaboration with Elsewedy, especially given their successful projects in Egypt.

The project includes constructing 687 kilometres of new distribution lines and rehabilitating 1,983 existing lines. FGNPC has collaborated closely with Enugu and Benin Distribution Companies (DisCos) and the Nigerian Electricity Regulatory Commission (NERC) to ensure the project aligns with industry standards and regulatory requirements

Elsewedy’s Country Manager, Islam Isharawy, emphasised their commitment: “We feel honoured to contribute our expertise to Nigeria’s ambitious energy goals. This project represents a significant opportunity to upgrade Nigeria’s power distribution infrastructure.”

Power China’s Vice President for Central and West Africa, Tino Dong, also expressed optimism, saying, “Power China believes in the President’s vision for the power sector and commits to high-quality and reliable power solutions as part of our interventions. We look forward to successfully collaborating with FGNPC and Elsewedy to improve power distribution in Nigeria.”

Tunji further explained that the PPI progresses under President Bola Tinubu’s mandate to swiftly deliver an improved power supply to industrial clusters, households, and businesses. He noted that FGN Power Company has already received ten power transformers and ten mobile substations from Siemens Energy.

These units deploy to critical sites nationwide, increasing transmission capacity by over 1,300MW. Key sites include Okene, Amukpe, Potiskum, Apo, Ihovbor, Birnin Kebbi, Ajah, Nike Lake, Kwanar Dangora, Maryland, Omouaran, and Ojo.

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