FGN Power Company, Partners Sign $118M Deal for DisCos Line Upgrade

The Federal Government of Nigeria Power Company (FGNPC) has signed an Engineering, Procurement, Construction, and Financing (EPC&F) contract worth $118.12 million with Elsewedy Electric and Power China.

The deal, finalised on Wednesday in Abuja, is for the rehabilitation and construction of 2,670 kilometers of 33kV, 11kV, and 400V distribution lines across Nigeria.

The contract, which was witnessed by Adebayo Adelabu, Minister of Power, marking a key development in Phase I of the Presidential Power Initiative (PPI), commenced in 2018.

The project entails the construction of 687 kilometers of new distribution lines (greenfield) and the rehabilitation of 1,983 kilometers of existing lines (brownfield).

Adelabu expressed his optimism about the partnership, stating, “This project is a significant milestone toward achieving reliable and sustainable electricity for all Nigerians.

He said, “We are committed to working with top-tier partners like Elsewedy and Power China to deliver on this promise.”

Kenny Anuwe, Managing Director of the FGN Power Company, emphasised the strategic choice of partnering with Elsewedy Electric and Power China, noting their proven expertise and past successes, including previous collaborations in Egypt.

He highlighted that while Siemens Energy has supplied ten power transformers and ten mobile substations to address transmission constraints, they do not specialise in distribution lines.

The FGN PC is also working closely with Enugu and Benin Distribution Companies (DisCos) and the Nigerian Electricity Regulatory Commission (NERC) to ensure the project meets industry standards and regulatory requirements.

Islam Isharawy, Elsewedy Electric’s Country Manager, underscored the company’s enthusiasm for contributing to Nigeria’s energy goals, calling the project a pivotal opportunity to enhance the country’s power distribution infrastructure.

Tino Dong, Power China’s Vice President for Central and West Africa, affirmed the company’s commitment to delivering high-quality and reliable power solutions in alignment with the President’s vision for the sector.

The PPI, under the direction of President Bola Tinubu, aims to improve power supply to industrial clusters, households, and businesses.