The project aims to rehabilitate and upgrade the country’s transmission lines and improve electricity distribution and supply
The African Development Bank has approved $210m funding to the Federal Republic of Nigeria for the Nigeria Transmission Expansion Project (NTEP1) in Nigeria.
The project being executed by Transmission Company of Nigeria (TCN) is a part of $1.6bn Transmission Rehabilitation and Expansion Programme (TREP). The project aims to rehabilitate and upgrade the country’s transmission lines and improve electricity distribution and supply.
According to the bank, the transmission project, which will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia will improve the capacity and reliability of the Nigerian transmission grid where it is most constrained.
African Development Bank Nigeria senior director EbrimaFaal said: “Nigerians and their businesses spend $14 billion annually on inefficient and expensive petrol or diesel-powered generators.
“This project will contribute significantly to the reduction of Nigeria’s power deficit, decrease air and noise pollution and reduce the cost of doing business.”
The project includes addition of 204km of new transmission lines
The funding from the bank comprises a $160m loan and an additional $50m loan from the Africa Growing Together Fund, which will support construction of 330kV double circuit quad transmission lines and substations across Nigeria.
The project will include upgrade of existing 263km of 330kV lines and addition of an additional 204km of new lines, which is expected to increase TCN’s wheeling capacity, stabilize the grid and reduce transmission losses.
NTEP1 will also reduce the use of small-scale diesel generators, contributing to the reduction of GHG emissions by saving about 11,460ktCO2 yearly.
The project is expected to create approximately 2,000 direct jobs, 1,500 jobs during construction and 500 during operations.
By increasing the supply of electricity to small and medium enterprises, the project is also expected to promote the creation of additional indirect jobs.
In April this year, the bank provided financial assistance for the renovation of the old Saint Louis power station in the north west of Mauritius.