AfDB approves $210m financing for Nigeria’s transmission expansion project
December 03, 2019 – The African Development Bank Group (AfDB) has approved $210m financing to the Federal Republic of Nigeria to fund the Nigeria Transmission Expansion Project (NTEP1) in a bid to improve the capacity and reliability of the country’s transmission grid.
The AfDB’s financing involves $160m loan as well as an additional $50m financing from the Africa Growing Together Fund.
Developed by the Transmission Company of Nigeria, the NTEP1 forms part of $1.6bn Transmission Rehabilitation and Expansion Programme (TREP).
By rehabilitating and upgrading the electricity transmission substations and lines, the TREP aims to increase power transmission network while improving power supply to consumers.
The NTEP1 project will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia to improve the Nigerian transmission grid’s capacity.
AfDB Nigeria senior director Ebrima Faal 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 AfDB’s funding will be used for the construction of 330kV double circuit quad transmission lines and substations across the country.
Additionally, the project involves upgrading the existing 263km of 330kV lines as well as installation of an additional 204km of new lines in a bid to reduce transmission losses.
Expected to create about 2,000 direct jobs,of which 1,500 during construction and 500 once operational, the project would significantly improve the country’s electricity supply, upon completion.
By reducing the use of small-scale diesel generators, the project is expected to contribute to the reduction of greenhouse gas gase (GHG) emissions by saving approximately 11,460kt CO2 annually.
AfDB Power & Energy acting vice-president Wale Shonibare said: “NTEP1 will increase the grid transmission stability and capacity, and reduce the amount of stranded power, whilst improving power export and regional power system integration to the West African Power pool, especially through Niger and Benin interconnections.”
AfDb Power Systems Development director Batchi Baldeh said: “In line with our work to improve utility performance, NTEP1 will substantially strengthen the capacity of TCN with regards to the development of energy infrastructure projects, especially the adoption of modern and more efficient transmission technologies, which are most required in Nigeria for network improvements.”