The Federal Government of Nigeria has inked a significant power distribution lines upgrade contract valued at $463 million with a Chinese consortium.
This development was officially announced on Thursday, and the contract will be financed by the China Exim Bank.
The contract signing ceremony was marked by the signing of a Memorandum of Understanding between the FGN Power Company, the special purpose vehicle overseeing the implementation of the Presidential Power Initiative on behalf of the Federal Ministry of Power, and the Chinese consortium.
The consortium comprises China Civil Engineering Construction and TBEA Energy.
The upgrade project will focus on enhancing the distribution lines infrastructure within Lot Three of the Presidential Power Initiative (PPI), covering regions served by Jos, Kano, Abuja, and Kaduna distribution companies.
The signing ceremony took place during the 3rd Belt and Road Initiative event held in Beijing, China. Additionally, a similar MoU was signed to establish a super grid for the power sector, involving the Transmission Company of Nigeria, CCECC, and TBEA.
The Nigerian delegation, led by Vice President Kashim Shettima, included the Minister of Power, Adebayo Adelabu, Minister of Works, David Umahi, Transportation Minister, Sa’idu Alkali, Foreign Affairs Minister, Amb. Yusuf Tuggar, and heads of various government agencies.
The signing ceremony highlighted the enduring partnership between China and Nigeria, solidified by strong diplomatic ties.
The collaboration underscores President Bola Tinubu’s administration’s commitment to revitalizing the power sector by addressing essential needs and executing impactful projects.
This milestone reflects the government’s dedication to improving the availability of electricity across homes and businesses nationwide, potentially alleviating long-standing power supply challenges.
The China Exim Bank’s involvement underscores its commitment to supporting Nigeria’s infrastructure development.