The Transmission Company of Nigeria (TCN) is set to complete 53 projects under the Central Bank of Nigeria (CBN) power intervention in May 2024.
TCN programme coordinator in charge of the projects, Mathew Ajibade, made this known during a tour of the projects in Ojo, Oworonsoki, and Isolo, in Lagos State.
Giving details of the project, he said eight 150 megavolt-amperes (MVA) power transformers, 19 100MVA power transformers, and 27 60MVA power transformers, would be delivered by TCN.
Ajibd further stated that TCN will also deliver the reconductoring of existing transmission lines (conductors and accessories), as well as upgrade existing 132/33kilovolts (KV) substations, and construct 33KV line bays.
He said the TCN was also building a facility for distribution companies (DisCos) to be able to evacuate power.
Giving further details, Ajibade said about N122.2 billion was initially earmarked for the entire scheme, but after procurement, the amount was reduced to N104 billion for the 53 projects.
Every DisCo, according to him, with the exception of Ibadan Disco, had commenced the projects in their franchises, reducing the active projects to 46.
“The Central Bank of Nigeria (CBN) in continuation of its intervention in the power sector, approved the sum of N122,289,344,369.39 for the programme; (NEMSF -3) based on the projects estimate for the identified projects,” he said.
The facility aims to resolve the transmission/distribution interface bottlenecks to improve supply to end users and unlock the unutilised generation capacity in the country.
“So far N85,432,335,688 has been disbursed into the APG account of the 53 Contractors to execute the projects. Details of project delivery are as follows.
“This intervention is anchored on firm service level agreements (SLAs) between TCN and DisCos on the one hand and DisCos and their customers on the other hand.
“The facility was given to Discos to invest in TCN networks by virtue of NERC regulation that permits third party investment in the electricity network. Payment for the loan would be a net off from the TCN monthly invoice to DisCos. The project implementation office (PMO) is resident in TCN for effective implementation.”
“The time set for the completion of the projects is May 2024 latest,” Ajibade stated, adding that the manufacturing process for most of the contracts is scheduled to be completed early next year, to pave the way for shipment and delivery.
He, however, said seven contractors had completed their offshore production process.
Ajibade said the project being naira-denominated was a great challenge as most materials and equipment used in the power sector are sourced offshore.
“This facility is naira denominated. Unfortunately, power projects are over 90 percent offshore, so we had that challenge that we had to source for FX, and we all know the situation of FX. Those are the challenges we have been facing,” he said.
Despite that, he said the project was still ongoing.
