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.