The Federal Government has signed a $328.8 million contract in collaboration with Chinese firm, China Machinery Engineering Corporation (CMEC), to revitalize and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI).
The agreement covers Engineering, Procurement, Construction, and Financing (EPC+F) for the advancement of 330kV and 132kV transmission lines across the country, with the goal of improving grid reliability and reducing stranded generation capacity.
FGN Power Company will be in charge of the management of the project, it's a special purpose vehicle established by the federal government to oversee implementation of the PPI.
The Minister of Power, Adebayo Adelabu, speaking at the contract signing ceremony in Abuja, said the agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning both brownfield and greenfield sites.
The Power Minister described it as a vital step toward resolving long lasting inefficiencies in Nigeria’s power value chain. He emphasized that improving the transmission network is essential to ensure that generated electricity is delivered efficiently to end-users.
He stated that the signing of the agreement demonstrated the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and reliable electricity to Nigerians.
The Managing Director of FGN Power Company, Kenny Anuwe, described the partnership with China Machinery Engineering Corporation (CMEC) as a strategic move to develop a robust transmission network capable of supporting increased generation capacity.
He explained that CMEC’s involvement complements the ongoing collaboration with Siemens Energy, which focuses on generation and high-voltage transmission technologies.
The Vice President of SINOMACH, Li Xiaoyu, expressed appreciation to the Nigerian government for its trust in CMEC, adding that the project would play a significant role in improving electricity delivery across the country.