Nigeria Signs Contract With a Chinese Consortium Worth $463 Million to Improve Power

The Federal Government in collaboration with the Ministry of Power has reached an agreement with a Chinese consortium to improve power distribution lines—the contract is worth $463 million.

Additionally, the China Exim Bank would fund the contract because it contains both off-shore and significant on-shore components.

Speaking about the contract, the Special Adviser for Strategic Communication and Media Relations to the Minister of Power, Bolaji Tunji revealed that the agreement would increase energy availability to families and businesses nationwide.

According to the release, The FGN Power Company signed the Memorandum of Understanding, the special purpose organization that is responsible for implementing the Presidential Power Initiative on behalf of the Federal Ministry of Power and a Chinese consortium. 

China Civil Engineering Construction and TBEA Energy were supposed to be part of the consortium.

It reads in part,

• This agreement is aimed at upgrading the distribution lines infrastructure under Lot Three of the PPI, which encompasses the regions served by Jos, Kano, Abuja, and Kaduna distribution companies.

• The signing ceremony occurred in Beijing, China, during the third Belt and Road Initiative event.” A similar MoU was signed by the Transmission Company of Nigeria, CCECC, and TBEA to build a power sector super grid.

In the meeting, the Minister of Power, Adebayo Adelabu, and his team were entertained by these two organizations, particularly CCECC, that have been operating in the country for the past 42 years.

The presentation was led by Liu Wiemin, who is the Global Chairman of CCECC, and Huang Hanjie, the Global President of TBEA.

Adelabu, in the signing ceremony, charged both companies to put in their effort because it was going to be a long-term partnership, which would also foster the bilateral relationship between Nigeria and China and further strengthen it at the BRI event. 

He also spoke about President Bola Tinubu’s plans to rejuvenate the power sector by addressing critical requirements and implementing impactful projects.