The Federal Government on Wednesday signed a $328.8 million contract with Chinese firm China Machinery Engineering Corporation (CMEC), to rehabilitate and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI).

The agreement covers Engineering, Procurement, Construction, and Financing (EPC+F) for the development of 330kV and 132kV transmission lines across the country, aimed at improving grid reliability and reducing stranded generation capacity.

The disclosure was contained in a news report by the News Agency of Nigeria (NAN) on Wednesday.

The report added that the project will be coordinated by FGN Power Company, a special purpose vehicle established by the federal government to oversee implementation of the PPI.

“The Federal Government and China Machinery Engineering Corporation (CMEC) on Wednesday signed a contract agreement worth 328.8 million dollars aimed at improving power supply across the country. 

“The contract, valued at $328,819 million dollars covers Engineering, Procurement, Construction, and Financing for the implementation of transmission lines under Phase 1 of the Presidential Power Initiative (PPI),” the NAN report read in part.

The Minister of Power, Adebayo Adelabu, speaking at the contract signing ceremony in Abuja, said the agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning both brownfield and greenfield sites.

He explained that these critical infrastructure projects would act as the main arteries for delivering increased power from midstream transmission directly to homes, businesses, and industries, helping to strengthen the country’s economic foundation.

More insights

Providing more insights into the project, the Power Minister described it as a vital step toward resolving persistent bottlenecks in Nigeria’s power value chain. He emphasized that enhancing the transmission network is essential to ensure that generated electricity is delivered efficiently to end-users.

• He noted that the signing of the agreement demonstrated the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and reliable electricity to Nigerians.
• Also providing further details, Managing Director of FGN Power Company, Kenny Anuwe, described the partnership with China Machinery Engineering Corporation (CMEC) as a strategic move to develop a robust transmission network capable of supporting increased generation capacity.

• He explained that CMEC’s involvement complements the ongoing collaboration with Siemens Energy, which focuses on generation and high-voltage transmission technologies.

Vice President of SINOMACH, Li Xiaoyu, also attended the event and expressed appreciation to the Nigerian government for its trust in CMEC, adding that the project would play a significant role in improving electricity delivery across the country.