Nigeria, Chinese firm sign $500m MoU for 20,000mw transmission grid projects

By Adesanya Alao

August 28, 2013 06:07:54am GMT

Electric power transmission lines

WorldStage Newsonline—Nigeria’s Ministry of Power has signed a $500 million Memorandum of Understanding (MoU) with a Chinese firm -Xian Electric for the strengthening of the transmission components of the Transmission Company of Nigeria (TCN) projects.

Speaking Tuesday during the signing ceremony in Abuja, the Permanent Secretary, Ambassador Godknows Igali recalled that during the presidential visit to China , the Federal Government negotiated for the MoU which is billed to provide 20,000mega watts of electricity.

Igali said : "When the President visited China recently, the power sector was one of the sectors that featured very prominently. At that occasioned we signed a MoU with a Chinese group for the development of 20,000mega watts of electricity.  Today we are signing this MoU as direct a fallout from that visit for possible investments in the transmission grid of the country. "

The MoU, which took effect immediately, according to the Minister, Prof. Chinedu Nebo, covers a period of two years.

The minister stated that the Chinese Exim Bank gave the Federal Government a concessionary loan of a very negligible interest for the implementation of the projects.

He added that besides providing the fund, the Chinese firm was also billed to bring its technical experience to bear in the project.

He said, "the duration of the MoU is two years. We expect that for that period these projects would have been concluded. We expect that the project takes immediate effect. "

The minister said that the Minitoba Hydro International, which is the management contractor of the TCN is the one designing the entire project.

He said the entire details of what the project should be will be provided to the Chinese firm by the Minitoba Hydro International.

Meanwhile, the General Manager, Xian Electric Engineering Company Limited, Mr. Ji Jun hua in his summary of the Federal Ministry of Power and the firm's MoU, said that the company was to liaise and collaborate with the stakeholder agencies of the Federal Government for the conduct of necessary studies required for successful execution of the projects.

He added that the firm was expected to execute the projects according to agreed specifications and timelines upon signing of the negotiated project agreements.

The General Manager said the contribution of the ministry to the projects shall include to facilitate the acquisition of relevant data and reports towards the conduct of required technical and economic studies for the projects by TCN.

The ministry, he said, is to facilitate in the identification and acquisition of suitable parcels of land and right of way for the execution of the projects.