FG signs N79 billion pact with Chinese firm on transmission network

Minister of Power, Prof. Chinedu Nebo

The Federal Government has lived up to its promise of injecting new lease of life into the Transmission Company of Nigeria (TCN), as it  sealed a N79 billion agreement with a Chinese firm, Xian Electric Engineering Company, on Tuesday, to upgrade Nigeria’s ailing transmission facilities within the next two years. 

The contract is aimed at expanding and upgrading Nigeria’s weak transmission network within two years. The execution of the memorandum of understanding (MoU), officials said, would commence immediately with funding from the Chinese Exim Bank on a concessionary loan. 

The Minister of Power, Prof. Chinedu Nebo, said the Coordinating Minister of the Economy and Minister of Finance, Mrs. Ngozi Okonjo-Iweala, negotiated the loan during the Federal Government’s delegation visit to China recently. 

He said Manitoba Hydro International and TCN contract managers would design and delineate the project’s entire details. 

He said: “What the money will do will be provided by Manitoba to the Chinese firm. Manitoba is already aware of their role in this MoU.” 

General Manager of Xian Electric, Jijun Hua, stressed how the MoU would strengthen relations between Nigeria and China and assured that Xian Electric would do its best to deliver the projects timely with extreme efficiency.

He said his firm is reputed as the largest enterprise specialised in research and development, design, production, sales and examination of power transmission and distribution control equipment, and is currently supplying complete sets of equipment and services to over 50 countries.

Following allegations of untardiness in the constitution of the present supervisory board and the confusing operational structure for the TCN, the Federal Government last Friday announced the reconstitution of the supervisory board for the firm.

This is the third time a supervisory board is being announced for the TCN in eight months. The government also yesterday, announced a nine-member management staff to work with the expatriates from Canada for the management of TCN, which has come under heavy criticism for failing to effectively wheel generated power. Government currently has a three months’ management contract with Canadian firm, Manitoba Hydro International, with an expatriate as managing director.

Meanwhile, a crucial meeting convened by Nebo for the newly-reconstituted supervisory board of the TCN had to be hurriedly called off when it became clear yesterday that the chairman could not attend because he was allegedly not notified.

The government had on Friday announced a new 17-member supervisory board for the TCN, which is again headed by Haman Tukur, while the Vice Chairman remains Akinsola Akinfemiwa, but with major amendments.

The minister said: “Ladies and gentlemen, please bear with us but we cannot officially inaugurate the reconstituted board and management of TCN because the chairman is not here. We have to do this on account of exigencies and I plead with you that this meeting has been postponed. We will reconvene tomorrow to inaugurate a properly constituted board of TCN.”