The Federal Government, through the Ministry of Power, has inked a $463 million contract with a Chinese consortium to improve power distribution lines.
The said the China Exim Bank would finance the deal because it contained both off-shore and significant on-shore components.
Bolaji Tunji, the Special Adviser for Strategic Communication and Media Relations to the Minister of Power, revealed this in a statement, stating that the agreement would increase energy availability to families and businesses nationwide.
The FGN Power Company signed the Memorandum of Understanding, the special purpose organization responsible for implementing the Presidential Power Initiative on behalf of the Federal Ministry of Power and a Chinese consortium, according to the release.
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China Civil Engineering Construction and TBEA Energy were supposed to be part of the consortium.
“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,” it said in part.
“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.”
According to the release, Adebayo Adelabu, the Minister of Power, and his team were entertained by these two organisations, particularly CCECC, which has been functioning in Nigeria for the past 42 years.
Liu Wiemin, Global Chairman of CCECC, and Huang Hanjie, Global President of TBEA led the presentation.
Speaking at the signing ceremony, Adelabu assured both companies of a long-term partnership, given the strong relationship between China and Nigeria, further strengthened at the BRI event.
He also outlined President Bola Tinubu’s administration’s plans to rejuvenate the power sector by addressing critical requirements and implementing impactful projects.
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