The World Bank has revised a $350 million loan to Nigeria for the completion of seven key power plants in educational institutions.
According to the Restructuring Paper on the Nigeria Electrification Project (NEP), this restructuring involves extending the project’s closing date to December 31, 2024.
Initially approved on June 27, 2018, the NEP aims to increase access to electricity for households, public institutions, and underserved micro, small, and medium enterprises (MSMEs).
Despite progress, the completion of the seven power plants, which are crucial to the project’s success, has faced delays due to geotechnical issues, community disturbances, and COVID-19-related disruptions.
Consequently, the restructuring document states, “To ensure the delivery of all 7 power plants as per the original scope of work, including unforeseen but necessary additional tasks, the project closing date would need to be extended by an additional 5 months to December 31, 2024.”
The revised completion date for all seven plants is expected by the end of the third quarter of 2024. Therefore, the final quarter of the year will focus on site handover and the commencement of a sustainability plan, during which the EPC contractors will provide a performance guarantee for the operational and maintenance period.
The Nigeria Electrification Project (NEP) includes developing private sector mini-grids, expanding standalone solar systems for poor and vulnerable households, and providing sustainable power to public universities and associated teaching hospitals.
As of June 2024, the project had connected almost 59,000 households and MSMEs through mini-grid grants and nearly 1.09 million households and MSMEs via standalone solar systems.
However, despite these achievements, Component 3, the Energizing Education Program Phase II (EEP II), has lagged, with completion levels ranging from 35 per cent to 80 per cent across different sites.
Consequently, as of the latest update, $265.32 million of the $350 million commitment has been disbursed, leaving an undisbursed balance of $84.68 million.
At the University of Abuja, the project is 65 per cent completed, facing challenges like rocky ground, uneven surfaces causing shading, and a deteriorated access road. Therefore, additional work includes drilling for anchorage, building retaining walls, and constructing a 1.4 km access road.
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Meanwhile, at the Michael Okpara University of Agriculture, Umudike, the project is 85 per cent completed but encountered non-compliant transmission line materials. Necessary work involves replacing 12.6 km of aluminum conductor with aluminum conductor steel-reinforced line.
Similarly, the University of Calabar & Teaching Hospital project is also 65 per cent completed, facing issues with collapsed drainage and unsuitable soil for pile-driving. As a result, additional work includes new drainage channels, reclaiming flood-affected areas, and anchorage construction.
On the other hand, the University of Maiduguri & Teaching Hospital project, standing at 79 per cent completion, faced issues like a refuse dump site, military-grade trench, and unsuitable soil for civil structures. Therefore, the work includes backfilling the refuse dump area and military trench and constructing a double circuit transmission line.
Furthermore, at the Federal University of Agriculture, Abeokuta, the project is 90 per cent completed, with challenges including basement rock formations and right-of-way encroachment. Consequently, work involves extending drainage channels and underground cabling of the transmission line.
At the Federal University, Gashua, the downstream distribution network is 100 per cent complete, but rapid infrastructure expansion and increased electricity demand pose challenges. Thus, additional work includes constructing an 8.7 km 11 kV distribution network.
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However, at the Nigeria Defence Academy, Kaduna, the upstream distribution network is only 15 per cent completed, with issues like vandalized transmission lines. Therefore, additional work involves replacing the 33 kV double circuit and constructing a 16 km 33 kV single circuit transmission line.
