FG, CMEC Sign $328.8m Deal To Strengthen Nigeria’s Power Supply

The Federal Government on Wednesday signed a $328.8m contract with China Machinery Engineering Corporation (CMEC) under the Presidential Power Initiative (PPI).

The agreement, which was signed in Abuja, covers engineering, procurement, construction, and financing (EPC+F) of new transmission lines and the rehabilitation of existing infrastructure under Phase 1 of the PPI.

The project also aims to enhance grid capacity, reduce transmission losses, and boost power delivery to homes, industries, and businesses across the country.

The Minister of Power, Chief Adebayo Adelabu, who presided over the signing ceremony, said the contract is a major milestone in the federal government’s plan to modernise and expand the national grid.

“The scope includes the rehabilitation and construction of 330 kV and 132 kV transmission lines. These projects are designed to unlock stranded generation capacity and increase grid efficiency,” he said.

Adelabu explained that the initiative has been split into two priority batches, with the first including seven brownfield and 10 greenfield projects, covering a total of 544 kilometres and a combined transmission capacity of 7,140 megawatts.

“These vital infrastructure projects are the arteries that will carry generated power to where it is needed most. By addressing bottlenecks in the transmission segment of the power value chain, we are paving the way for reliable electricity supply, economic growth, and job creation,” he said.

According to him, the project will be executed by CMEC in collaboration with the FGN Power Company, a special-purpose vehicle established by the federal government to implement the PPI.

The Managing Director of FGN Power Company, Mr Kenny Anuwe, who spoke about the significance of the partnership with CMEC, noted that strengthening the transmission backbone was essential to ensuring that generated power reaches end-users efficiently.

“Our goal is to build a robust transmission network that can support current and future demand. CMEC’s global track record in engineering and project execution gives us confidence that this project will be delivered to specification, on time and on budget.”

He also noted the complementary role of Siemens Energy, which is involved in parallel components of the PPI focused on generation and high-voltage transmission systems.

The Vice President of SINOMACH, Mr Li Xiaoyu, who represented CMEC at the ceremony, thanked the federal government for the opportunity and pledged the company’s commitment to delivering a high-quality project that meets global standards.

FG, CMEC Sign $328.8m Deal To Strengthen Nigeria’s Power Supply is first published on The Whistler Newspaper