TCN: N104bn CBN-funded projects to be completed in May 2024

The Transmission Company of Nigeria (TCN) says it will complete 53 projects under the Central Bank of Nigeria (CBN) power intervention in May 2024.

Speaking during a tour of the projects in Ojo, Oworonsoki, and Isolo, Mathew Ajibade, TCN programme coordinator in charge of the projects, said the firm is building a facility for distribution companies (DisCos) to be able to evacuate power.

Outlining the project details, he said eight 150 megavolt-amperes (MVA) power transformers, 19 100MVA power transformers, and 27  60MVA power transformers, would be delivered by TCN.

He added that TCN will also deliver the reconductoring of existing transmission lines (conductors and accessories), as well as upgrade existing 132/33kilovolts (KV) substations, and construct 33KV line bays. 

Ajibade said about N122.2 billion was initially earmarked for the entire scheme, but after procurement, the amount was reduced to about N104 billion for the 53 projects.

Presently, he said every DisCo — except Ibadan Disco — have commenced the projects in their franchises, reducing the active projects to 46.

“The Central Bank of Nigeria (CBN) in continuation of its intervention in power sector, approved the sum of N122,289,344,369.39 for the programme; (NEMSF -3) based on the projects estimate for the identified projects,” he said.

“The facility aims to resolving the transmission/distribution interface bottlenecks to improve supply to end users and unlock the unutilised generation capacity in the country. 

“So far N85,432,335,688 has been disbursed into the APG account of the 53 Contractors to execute the projects. Details of project delivery are as follows.

“This intervention is anchored on firm service level agreements (SLAs) between TCN and DisCos on the one hand and DisCos and their customers on the other hand. 

“The facility was given to Discos to invest in TCN networks by virtue of NERC regulation that permits third party investment in the electricity network. Payment for the loan would be a net off from the TCN monthly invoice to DisCos. The project implementation office (PMO) is resident in TCN for effective implementation.” 

Ajibade said the projects are presently implemented through the project management office (PMO) at TCN headquarters in collaboration with both the company’s field engineers and DisCos technical teams. 

“The time set for the completion of the projects is May 2024 latest,” Ajibade said.  

He said the manufacturing process for most of the contracts is scheduled to be completed early next year 2024 to pave the way for shipment and delivery. 

However, Ajibade said seven contractors have completed their offshore production process. 

‘FX SOURCING, A MAJOR CHALLENGE’

Ajibade said the project being naira-denominated is a great challenge as most materials and equipment used in the power sector are sourced offshore.

“This facility is naira denominated. Unfortunately, power projects are over 90 percent offshore, so we had that challenge that we had to source for FX, and we all know the situation of FX. Those are the challenges we have been facing,” he said.

Despite that, he said the project is still ongoing.