jeff juwana
Moderator
In an effort to further stabilize the power sector, the Federal Government on Tuesday signed a Memorandum of Understanding with the Xian Electric Engineering Company Limited of China to the tune of N78billion ($500 million) for the construction of power transmission infrastructure in the power sector.
According to Prof. Chinedu Nebo, Minister of Power, the loan was negotiation by the Minister of Finance, Dr. Ngozi Okonjo-Iweala during a recently visit of President Goodluck Jonathan to China.
He said, “The Chinese Exim Bank is going to give us a concessionary loan in this regard and we are going to get the best possible interest. The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had negotiated it and brought it up to the Chinese Exim Bank during the presidential state visit to China.
“So, we are very comfortable with having this concessionary loan and having very little interest to pay for it.”
The Minister said Xian Electric will liaise and collaborate with stakeholder agencies of the Federal Government to ensure the project meets specifications and is successfully executed. The involvement of Xian Electric will also include technical design specification, training of Nigerian workforce, developing a manual for the operation and maintenance of the transmission network as well as support the local content policy.
The contribution of the Federal Ministry of Power, according to the terms of the agreement, is to facilitate the acquisition of relevant data and reports, and assist in the identification and acquisition of suitable parcels of land and secure the right of way for the execution of the projects.
The ministry is also to provide Xian Electric with the technical details of the Transmission Company of Nigeria’s projects list that will be considered for implementation and to facilitate the execution of needed commercial agreements as may be required for the bankability of the projects.
With regard to the role of Manitoba Hydro International, the consultant managing the Transmission Company of Nigeira, Nebo said, “MHI is the management consultant for the TCN. They are the ones that are designing and delineating the project. So, the entire details of what this money will do will be provided for the group by Manitoba.
“Manitoba is well aware of this and the details are essentially ready, and they will be attached to the MoU. So, we expect that very shortly, all these arrangements will take off.”
The minister said the MoU would last for a two-year period, stressing that many of the TCN projects would have been completed before the end of the process.
In his remarks, the General Manager, Xian Electric, Mr. Ji Junhua, said both parties had earlier exchanged ideas on the transmission upgrading project.
“Signing this MoU symbolises that we have furthered our relationship and we will continuously try our best to smoothen the whole process,” he said.
Junhua reiterated the group’s commitment to establishing multiple after sales and training centres in Nigeria.
According to Prof. Chinedu Nebo, Minister of Power, the loan was negotiation by the Minister of Finance, Dr. Ngozi Okonjo-Iweala during a recently visit of President Goodluck Jonathan to China.
He said, “The Chinese Exim Bank is going to give us a concessionary loan in this regard and we are going to get the best possible interest. The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had negotiated it and brought it up to the Chinese Exim Bank during the presidential state visit to China.
“So, we are very comfortable with having this concessionary loan and having very little interest to pay for it.”
The Minister said Xian Electric will liaise and collaborate with stakeholder agencies of the Federal Government to ensure the project meets specifications and is successfully executed. The involvement of Xian Electric will also include technical design specification, training of Nigerian workforce, developing a manual for the operation and maintenance of the transmission network as well as support the local content policy.
The contribution of the Federal Ministry of Power, according to the terms of the agreement, is to facilitate the acquisition of relevant data and reports, and assist in the identification and acquisition of suitable parcels of land and secure the right of way for the execution of the projects.
The ministry is also to provide Xian Electric with the technical details of the Transmission Company of Nigeria’s projects list that will be considered for implementation and to facilitate the execution of needed commercial agreements as may be required for the bankability of the projects.
With regard to the role of Manitoba Hydro International, the consultant managing the Transmission Company of Nigeira, Nebo said, “MHI is the management consultant for the TCN. They are the ones that are designing and delineating the project. So, the entire details of what this money will do will be provided for the group by Manitoba.
“Manitoba is well aware of this and the details are essentially ready, and they will be attached to the MoU. So, we expect that very shortly, all these arrangements will take off.”
The minister said the MoU would last for a two-year period, stressing that many of the TCN projects would have been completed before the end of the process.
In his remarks, the General Manager, Xian Electric, Mr. Ji Junhua, said both parties had earlier exchanged ideas on the transmission upgrading project.
“Signing this MoU symbolises that we have furthered our relationship and we will continuously try our best to smoothen the whole process,” he said.
Junhua reiterated the group’s commitment to establishing multiple after sales and training centres in Nigeria.