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TCN raises 2bn to revamp and expand its power grid
The Transmission Company of Nigeria (TCN) recently announced that it had secured around $2 billion (₦720 billion) to revamp and expand its power grid. The funds were raised through the World Bank, the African Development Bank (AfDB), the Islamic Development Bank (ADB), the Japanese Agency for International Cooperation (JAICA), and the European Union (EU).
Following the announcement, TCN’s managing director, Usman Gur Mohammed, said that the company had already advertised for transformer capacities for the Kano, Kaduna, Lagos and Shiroro regions.
“These are part of the projects we have been able to raise from the multilateral regions, and the total capacity we are working towards achieving is 20,000 MW in the next three years,” he said.
In addition, Mohammed announced that the funds raised would also be used to resume a number of projects which had been put on hold, such as the Abuja Transmission Ring Project and the JAICA project which is aimed at expanding the capacity of transmission.
“Those two projects plus the project that we are going to raise now is about $1.55 billion,” he added.
TCN will also expand the transmission lines from Shiroro to Kaduna and from Kaduna to Kano.
“We are putting a cord line that will carry 2,400-MW capacity. We have never had that kind of capacity in Nigeria,” Mohammed pointed out.
On August 30, the Nigerian Federal Executive Council (FEC) announced that it had awarded a contract for the construction of the 3,050-MW Mambilla hydropower plant at Gembu in Taraba to the China Civil Engineering Construction Corporation (CCECC).
The project, jointly financed by the government and the Export-Import Bank of China (Exim), will require the construction of four dams and the erection of 700 kilometers of transmission lines.
However, Nigeria is still experiencing serious issues with its 11 electricity distribution companies (DisCos) which are unable to accept all the power produced by the generating companies (GenCos) because their facilities badly need upgrading.
A recent study showed that domestic manufacturers had spent N67 billion (US$188 million) to power their factories in the second half of 2016 because of the DisCos’ inability to supply electricity on a regular or constant basis.
Around half the country’s population does not have access to the grid for their electricity needs.
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