The World Bank has restructured a significant $350 million loan for Nigeria, aimed at advancing the completion of seven crucial power plants within educational institutions. The restructuring extends the project’s closing date to December 31, 2024, ensuring the successful implementation of the Nigeria Electrification Project (NEP).
Approved initially on June 27, 2018, the NEP is designed to enhance electricity access for households, public institutions, and micro, small, and medium enterprises (MSMEs) across Nigeria. The project’s success is pivotal for improving the nation’s energy infrastructure, though it has faced delays due to unforeseen issues including geotechnical challenges, community disturbances, and COVID-19-related setbacks.
The Restructuring Paper outlines that to meet the project’s original objectives, the deadline has been extended by an additional five months. The revised timeline anticipates $350 million loan for the completion of the power plants by the end of Q3 2024, with Maiduguri and Calabar sub-projects expected to conclude by September 2024. The final quarter will focus on site handovers and initiating a sustainability plan, requiring EPC contractors to provide performance guarantees for operational and maintenance periods.
Project Achievements and Challenges
The NEP encompasses several components, including the development of mini-grids, expansion of standalone solar systems, and sustainable power provision to public universities and teaching hospitals. As of June 2024, the project has successfully connected nearly 59,000 households and MSMEs through mini-grid grants and approximately 1.09 million through standalone solar systems.
However, progress on Component 3, which includes the Energizing Education Program Phase II (EEP II), varies, with completion levels ranging from 35% to 80% at different sites. Of the $350 million committed, $265.32 million has been disbursed, leaving a balance of $84.68 million.
Current Status of Power Plant Projects
University of Abuja: 65% completed. Challenges include rocky ground and an uneven surface, necessitating additional work on anchorage, retaining walls, and road construction.
Michael Okpara University of Agriculture, Umudike: 85% completed. Issues with transmission line materials have led to a required replacement of 12.6 km of the conductor.
University of Calabar & Teaching Hospital: 65% completed. Problems with flooding and unsuitable soil are being addressed with new drainage channels and site reclamation.
University of Maiduguri & Teaching Hospital: 79% completed. Challenges include refuse and military-grade trenches, with additional work needed for site reclamation and transmission line construction.
Federal University of Agriculture, Abeokuta: 90% completed. Additional tasks involve extending drainage channels and addressing right-of-way encroachments.
Federal University, Gashua: 100% completed downstream distribution. New challenges include expanding the distribution network to meet rising demand.
Nigeria Defense Academy, Kaduna:15% completed upstream distribution. Challenges include vandalism and additional infrastructure requirements.
The restructuring ensures that despite setbacks, Nigeria’s critical energy projects will proceed, supporting the country’s energy infrastructure and development goals.