The federal government yesterday started a new phase of the Presidential Power Initiative (PPI), also called the Siemens project, with the signing of a $328 million Engineering, Procurement, Construction, and Financing (EPC&F) contract between FGN Power Company, its Special Purpose Vehicle (SPV), and China Machinery Engineering Corporation (CMEC).
The main phase of the project came after the near completion of the pilot segment, which saw the power sector receive several transformers, substations and other equipment in preparation for the new phase, under which Nigeria expected to increase operational capacity to 7 GW, 11 GW in phase 2 and 25 GW in phase 3.
Speaking at the signing ceremony in Abuja, Minister of Power, Chief Adebayo Adelabu, stated that the vital assets were now being strategically installed across the country in locations like Okene, Amukpe, Potiskum, Apo, and many others.
According to Adelabu, over 700 MW has now been added to Nigeria’s transmission capacity, easing critical constraints and bringing Nigeria closer to a more robust and reliable grid.
He stated, “Today, we take an even bolder step forward. We are here to witness the formal signing of a landmark EPC&F contract between the FGN Power Company and the esteemed China Machinery Engineering Corporation (CMEC). This agreement, valued at $328,818,916.99, signifies a major leap in the implementation of Phase I of the PPI.
“This project will see CMEC undertake the vital task of rehabilitating and constructing an extensive construction of 330kV and 132kV Transmission Lines under Phase I of the PPI.”
The contract, strategically divided into two priority batches, he stressed, will ensure efficiency and prevent stranded capacity in the grid, with priority 1 comprising seven brownfield and 10 greenfield lines, totalling 544 km, with a load capacity of 7,140MW.
Adelabu said the vital infrastructure will act as the arteries that carry the increased power generated through Nigeria’s midstream transmission projects directly to the homes, businesses, and industries that power the economy.
By focusing on upgrading and expanding the power transmission network, the minister stated that Nigeria was directly addressing a key bottleneck in the power value chain, which will translate to significant improvement in electricity reliability and accessibility for millions of Nigerians, fostering economic growth, creating jobs, and enhancing the quality of life of citizens.
While expressing delight at the partnership with CMEC, especially their proven track record, global expertise, Adelabu acknowledged the crucial role of Siemens Energy in the broader context of the PPI.
He said, “This partnership with CMEC allows us to leverage their specific skills and ensure the highest standards of quality and efficiency in delivering this essential infrastructure. This collaborative approach, bringing together the strengths of Siemens and CMEC, underscores our commitment to a comprehensive and effective implementation of the PPI.
“Today’s signing ceremony is more than just the exchange of documents; it is a tangible demonstration of the unwavering commitment of the federal government, under the leadership of President Bola Tinubu, to deliver on our promise of a stable and reliable power supply for all Nigerians.
“We are determined to break down the barriers that have hindered progress in the past and build a power sector that is fit for the 21st century and beyond.”
Managing Director of FGN Power, Kenny Anuwe, in his remarks, stated that the expansion and upgrade of Nigeria’s transmission infrastructure were crucial for effectively transporting the increased power generated through the ongoing midstream projects to where it was needed most.
Anuwe highlighted the global reputation of CMEC for engineering excellence, project execution capabilities, and commitment to quality, explaining that the government is confident that their expertise will be invaluable in delivering the critical infrastructure efficiently and to the highest standards.
According to him, the partnership with CMEC complements the strengths of Siemens, allowing Nigeria to adopt a comprehensive approach to upgrading its entire power infrastructure value chain.
Anuwe revealed that the pilot project, which started with 10 power transformers and 10 mobile substations, was almost completed, with focus now turned to implementation of the main phase.
He added, “We have already completed over 85 per cent of them (transformers installation). There are a couple more that we are going to be commissioning in another month or so. They have already been tested.”
Vice President of Sinomach, a subsidiary of CMEC, Li Xiaoyu, stressed that, currently, the company was handling several projects in Nigeria, covering power, energy, infrastructure, agriculture, among others.
In recent years, Xiaoyu stated that the company had completed about nine power plants in Nigeria, including Omotosho Phase 1 and Phase 2, Zungeru Hydro, and Maiduguri Emergency Power Project.
He stated, “We have a big market in Nigeria. All these projects we have built and the products we are good at are not only fit for Nigeria’s strategic development, but also fit into the China ‘One Belt Road’ initiative.’”
Discussion about this post