ENUGU, Nigeria (VOICE OF NAIJA) – The Federal Government of Nigeria has signed a $463 million deal with a prominent Chinese consortium for the upgrade of power distribution lines.
The announcement, made in Abuja on Thursday, highlighted the partnership’s financial backing from the China Exim Bank, with a substantial combination of both off-shore and on-shore components.
This momentous agreement, as disclosed by Bolaji Tunji, the Special Adviser for Strategic Communication and Media Relations to the Minister of Power, is poised to elevate the accessibility of electricity to households and businesses across the nation.
The Memorandum of Understanding was formally signed between the FGN Power Company, the specialized entity responsible for executing the Presidential Power Initiative on behalf of the Federal Ministry of Power, and the Chinese consortium, comprising China Civil Engineering Construction and TBEA Energy.
The primary objective of this pact is to enhance the distribution lines infrastructure within Lot Three of the PPI, which covers regions served by distribution companies in Jos, Kano, Abuja, and Kaduna. The signing ceremony took place during the 3rd Belt and Road Initiative event held in Beijing, China, further strengthening the ties between Nigeria and China.
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It read 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 took place during the 3rd Belt and Road Initiative event held in Beijing, China. A similar MoU was signed between the Transmission Company of Nigeria, CCECC and TBEA to establish a super grid for the power sector.”
The Minister of Power, Adebayo Adelabu, along with his delegation, was warmly hosted by the two organizations, especially CCECC, with a long-standing 42-year presence in Nigeria.
The presentation was conducted by Mr. Liu Wiemin, Global Chairman of CCECC, and Mr. Huang Hanjie, TBEA Global President.
The Nigerian delegation to China, led by Vice President Kashim Shettima, included Adelabu, Minister of Works David Umahi, Transportation Minister Sa’idu Alkali, Foreign Affairs Minister Amb. Yusuf Tuggar, and heads of various government agencies.
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The Belt and Road initiative, initiated by the Chinese government a decade ago, aims to foster infrastructure investments and cooperation across approximately 70 countries spanning Africa, Asia, and Europe. In 2018, former President Muhammadu Buhari represented Nigeria by signing the Belt and Road agreement.
Addressing the audience at the signing ceremony, Adelabu underscored the commitment to a long-term partnership between both companies, leveraging the strong China-Nigeria relationship, which was further fortified at the BRI event.
He also outlined President Bola Tinubu’s administration’s robust plans to revitalize the power sector by addressing critical requirements and executing transformative projects.