Nigeria: FG Approves N1.9bn for Onitsha Transmission Line Replacement

The Federal Executive Council on Wednesday during its first meeting of the year approved a N1.9bn contract for the supply of 746 kilometres of aluminium conductor composite core reinforced for the re-conduction of the Onitsha-New Haven 330KV power transmission line.

The ministers of Information, Mr. Labaran Maku, and Power, Prof. Chinedu Nebo, briefed journalists on the contract, at the end of the meeting, which was presided over by President Goodluck Jonathan.

Nebo said the contract was awarded to Composite Technology Corporation of the United States for $11.2m.

He put the Nigerian component of the contract sum, including Value Added Tax, at N180m, bringing the total cost to N1.9bn.

Nebo said the Transmission Company of Nigeria intended to fund the contract from the $135m allocated to it from the proceeds of the Eurobond recently issued by the Federal Government.

The minister noted that the reinforcement of the line would improve the nation’s transmission capacity and facilitate the evacuation of the stranded generated electricity from the Afam and Okpai power plants.

“The project will generate employment for about 3,000 workers during the installation of the conductor, while the multiplier effect of additional 400 megawatts of power to the thriving areas of New Haven, Abakaliki and Makurdi will stimulate the generation of over one million jobs,” he added.

Nebo said the need for the renovation of the transmission line was important because the system was about caving in, adding that the conductors were 22 years old.

He said the renovation would provide steady power supply to Onitsha, Enugu and Makurdi.


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