Presidential Power Initiative: FG Signs $328.8m Contract To Boost Electricity Supply

The federal government has signed a $328.8 million contract to ensure efficiency and prevent stranded capacity in the grid.

The contract signed Wednesday in Abuja, is aimed at addressing the challenges of power supply in the country.

Minister of Power, Adebayo Adelabu disclosed this during the signing of the multi-million dollar contract between the FGN Power Company (FGNPC), a Special Purpose Vehicle (SPV) driving the Presidential Power Initiative (PPI) and China Machinery Engineering Corporation (CMEC) company on Wednesday.

He said the exercise was a further demonstration of the unwavering commitment of the federal government, under the leadership of President Bola Ahmed Tinubu, to deliver on the promise of a stable and reliable power supply to all Nigerians.

The minister said the projects have been strategically divided into two priority batches of seven brownfield and ten greenfield lines, totalling 544km with a load capacity of 7,140 megawatts, while further reiterating the commitment of the federal government to break the barriers that have hindered progress in the past and build a power sector that is fit for the 21st century and beyond.
Specifically, the contract will undertake the rehabilitation and construction of 330kv and 132kv transmission lines under Phase 1 of PPI.

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Adelabu described the signing ceremony as another crucial milestone in the government’s determined journey to revolutionise Nigeria’s Power sector. He noted that prior to the contract signing, there had been discussions on the tangible progress of the PPI with the successful receipt and ongoing deployment of ten-state-of-the-art power transformers and ten mobile substations from Siemens Energy.

“These vital assets, now being strategically installed across the nation in locations like Okene, Amukpe, Potiskum, Apo, and many others, are already adding 700mw to our transmission capacity, easing critical constraints and bringing us closer to a more robust and reliable grid”.

“Today, we take an even bolder step forward. We are here to witness the formal signing of a landmark Engineering, Procurement, Construction, and Financing (EPC&F) contract between FGN Power Company (FGNPC) and the esteemed China Machinery Engineering Corporation (CMEC).This agreement signifies a major leap in the implementation of phase 1 of the PPI. This will ensure efficiency and prevent stranded capacity in the grid, these projects have been strategically divided into two priority batches. Priority one comprises seven brownfield and ten greenfield lines, totalling 544km with a load capacity of 7,140MW”, the Minister said.

According to him, the vital infrastructure will act as the arteries that carry the increased power generated through the mainstream transmission projects directly to the homes, businesses, and industries that power the economy. He also added that the project was not an isolated endeavour.

“This is deliberately designed to seamlessly complement the ongoing mid-stream transmission enhancements. Our vision is a holistic one- from generation to the last mile of distribution. By focusing on upgrading and expanding our transmission network, we are directly addressing a key bottleneck in the power value chain. This will translate to a significant improvement in electricity reliability and accessibility for millions of Nigerians, fostering economic growth, creating jobs, and enhancing the quality of life of our citizens.

“I want to express my sincere enthusiasm for this strategic partnership with CMEC. Their proven track record, global expertise, and unwavering commitment to excellence make them the ideal partner to execute this critical phase of the PPI. We are confident that their technical prowess and dedication will ensure the successful and timely completion of this ambitious undertaking. Furthermore, I want to acknowledge the crucial role of Siemens Energy in the broader context of the PPI. While their strengths lie in advanced power technology and innovation, particularly in the generation and transmission segments, we recognise the need for specialised expertise in the construction and rehabilitation of these vital distribution lines. This partnership with CMEC allows us to leverage their specific skills and ensure the highest standards of quality and efficiency in delivering this essential infrastructure. This collaborative approach, bringing together the strengths of Siemens and CMEC, underscores our commitment to a comprehensive and effective implementation of PPI”, Adelabu said.

The Minister assured Nigerians of continued improvement in the sector. “To the Nigerian people, I say this: we understand the challenges you have faced with power supply, and we are working tirelessly to address them. Today’s event is a testament to our commitment to deliver tangible improvements. We ask for your continued patience and support as we embark on this transformative journey”.

Mr Kenny Anuwe, the Managing Director of FGN Power Company, said the initiative would ensure stable power supply to Nigerians and boost the vision of President Tinubu that electricity is the right of every Nigerian.

“We are delighted to partner with CMEC on this transformative project. Their proven expertise and commitment to excellence make them ideal partners for delivering this critical infrastructure. Siemens, known for its strengths in advanced technology and innovation, does not specialise in distribution lines. This partnership with CMEC will ensure the highest quality and efficiency in delivering the necessary infrastructure”. Together, we will combine our strengths and deliver comprehensive solutions to meet Nigeria’s growing energy and infrastructure needs”, Anuwe said.