Nigeria Signs Landmark $118bn Contract to Revamp Power Infrastructure

 

By John Joseph

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In a significant move to address Nigeria’s chronic power shortages, the Federal Government has signed a major contract worth $118,148,469.72 with FGN Power Company (FGNPC) to upgrade the country’s power distribution infrastructure.The project, which involves the construction and rehabilitation of over 2,670 kilometers of distribution lines, aims to improve electricity delivery to residential, commercial, and industrial areas across Nigeria.

The contract was signed in Abuja on [date] and marks a major milestone in the government’s efforts to modernize the power sector.Nigeria’s power sector has been plagued by inefficiencies and inadequate infrastructure, resulting in frequent power outages and a significant gap between electricity supply and demand. The government has been working to address these challenges through various initiatives, including the Presidential Power Initiative (PPI), which aims to increase power generation and distribution capacity.

The project involves the construction of 687 kilometers of new distribution lines and the rehabilitation of 1,983 kilometers of existing infrastructure. The work will be carried out by Elsewedy Electric and Power China, two leading industry partners with expertise in power distribution infrastructure.FGNPC, a Special Purpose Vehicle (SPV) created to implement the PPI, will oversee the project. The company has worked closely with Enugu and Benin Distribution Companies (DisCos) and the Nigerian Electricity Regulatory Commission (NERC) to ensure that the project meets industry standards and regulatory requirements.

Chief Adebayo Adelabu, Minister of Power, hailed the project as a “pivotal step” towards providing reliable and sustainable electricity to all Nigerians. “This project represents a significant investment in our power infrastructure and will help to address the challenges of power shortages and inefficiencies,” he said.Kenny Anuwe, FGNPC Managing Director, expressed excitement about the partnership with Elsewedy and Power China.

“We are excited to join forces with these leading industry partners to deliver a transformative project that will improve power supply and support economic growth,” he said.Islam Isharawy, Elsewedy Electric Country Manager, emphasized the company’s commitment to delivering high-quality solutions.

“We are honored to lend our expertise to this significant project, which will help to upgrade Nigeria’s power distribution infrastructure,” he said.Tino Dong, Power China Vice President, reaffirmed the company’s support for the government’s vision for the power sector. “Power China fully supports the President’s vision for the power sector and is dedicated to delivering high-quality and reliable power solutions,” he said.