The Federal Government, represented by the Ministry of Power, has inked a $463 million contract with a Chinese consortium to improve power distribution lines.
The FG said the deal will be financed by the China Exim Bank 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 the availability of energy to families and businesses across the country.
The Memorandum of Understanding was signed by the FGN Power Company, the special purpose organisation responsible for implementing the Presidential Power Initiative on behalf of the Federal Ministry of Power, and a Chinese consortium, according to the release.
China Civil Engineering Construction and TBEA Energy are 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 took place 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.
The presentation was led by Liu Wiemin, Global Chairman of CCECC, and Huang Hanjie, Global President of TBEA.
Speaking at the signing ceremony, Adelabu assured both companies of a long-term partnership, given the strong relationship between China and Nigeria, which was 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.