As electricity generation in the country went down by over 1,000 megawatts (MW) in the past few days, the Transmission Company of Nigeria (TCN) says it has lined up $6.2 billion to upgrade power transmission projects.
The company says the Federal Government has given its support for loans from various agencies such as the African Development Bank (AfDB) and the World Bank, among others.
It says it requires about $1.5 billion to $2 billion annually, and the government is giving it all the support and guarantees needed.
“Already, the Niger Delta Power Holding Company has planned to invest $3.7 billion in TCN projects for the next four years.”
Funding is also expected from the China Exim Bank ($500 million), World Bank ($150 million), Islamic Development Bank ($250 million) and Eurobond ($150 million), etc.
When this phase of projects is concluded, it is expected that Nigerians would see a significant stepping up of power transmission across the country in the foreseeable future, the management of TCN says.
Responding to questions from BusinessDay, TCN says it currently has a wheeling capacity of 7,000 MW, which is 1,000 MW above the 6,000 MW installed generating capacity of the country, adding that it plans for days ahead based on the generation forecasts put forward by the generating companies.
It says the $6.2 billion projects are scaled over four years and that there would likewise be scaled improvements in power transmission across the country, which should culminate in uninterrupted supply and the end of the four-year period.
At present, however, the power sector is facing serious gas and generation challenges, and the generating companies have been battling to get enough gas to meet their targets, but they are being thwarted by severe gas shortages.
On the other hand, gas suppliers are blaming their inability to produce sufficient volumes on huge debts owed them by electricity producers.
The TCN $6.2 billion project is mapped out in three phases – short, medium and long, says the company’s management in an emailed response to questions.
It says in the short-term plan, it is systematically expanding its grid and has completed 19 major projects comprising transmission substations, as well as single and double circuit transmission lines which are already operational.
Some of these projects include the provision of two 150mva capacity transformers and a 330/132kV substation for Yola, as well as a 330kV Bay Extension for Gombe and two 30/40mva and a 132/33kV substation for Tamburawa.
It also entails similar facilities for Talata Mafara, Jalingo, Kano, Alaoji-Umuahia, Gombe-Damaturu and Maiduguri, among others.
The company currently has 174 on-going substation and transmission line projects nationwide. In addition, there are on-going reinforcement works on 20 facilities in various parts of the transmission grid, comprising four 300mva, four 150mva, four 100mva, seven 60mva and three 40mva transformers.
NDPHC is investing in transmission substations in line with TCN plans. The projects are handed over to TCN on completion. It has various ongoing transmission projects which will also be handed over to TCN.
NDPHC has equally set aside an additional $1.6 billion which it will further invest in TCN to boost evacuation of power from all NDPHC Phase 1 and Phase 2 projects, as well as raise transmission capacity to 16,000MW.
“We have put in place a vibrant procurement process to ensure that laid down guidelines for award of contracts are followed and that contractors are qualified for the various jobs,” the management said.
In the medium term, the company plans to ensure the completion of all current ongoing projects within the specified time.
On the long-term plan, it is expected that through the government and private sector partnership, a seamless arrangement for the funding of new transmission projects lined up would be put in place, while its ultimate goal is to develop the nation’s transmission system into a world-class transmission grid.
Olusola Bello
