The Federal Government has signed a $328.8 million contract with Chinese firm, China Machinery Engineering Corporation (CMEC), to rehabilitate and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI).
The agreement encompasses the Engineering, Procurement, Construction, and Financing (EPC+F) of 330kV and 132kV transmission lines nationwide, to enhance grid reliability and minimize stranded generation capacity.
The project will be managed by FGN Power Company, a special purpose vehicle created by the federal government to oversee the implementation of the PPI.
At the contract signing ceremony in Abuja, Minister of Power, Adebayo Adelabu, announced that the agreement would involve the construction of 544 kilometers of transmission lines, with a total load capacity of 7,140 megawatts, covering both brownfield and greenfield sites.
He explained that these vital infrastructure projects would serve as the primary channels for delivering increased power from midstream transmission directly to homes, businesses, and industries, strengthening the country’s economy.
The Power Minister highlighted that this project is a crucial step in addressing the long-standing bottlenecks in Nigeria’s power value chain, underscoring the importance of enhancing the transmission network to ensure the efficient delivery of generated electricity to end-users.
He also noted that the signing of the agreement underscores the federal government’s commitment, under President Bola Tinubu’s leadership, to providing Nigerians with stable and reliable electricity.
The Managing Director of FGN Power Company, Kenny Anuwe, described the partnership with China Machinery Engineering Corporation (CMEC) as a strategic effort to develop a robust transmission network capable of supporting increased generation capacity.
He added that CMEC’s involvement complements the ongoing collaboration with Siemens Energy, which focuses on generation and high-voltage transmission technologies.
Li Xiaoyu, Vice President of SINOMACH, expressed gratitude to the Nigerian government for its trust in CMEC, emphasizing that the project will play a pivotal role in enhancing electricity delivery throughout the country.
