By Emma Ujah, Abuja Bureau Chief
The World Bank has approved $486 million for the rehabilitation and upgrading of electricity transmission substations and lines, in Nigeria.
According to the bank’s country office in Nigeria, the facility is an International Development Association (IDA) Credit which means it is concessionary, attracting low to zero interest.
The bank said in a statement, “The investments under the Nigeria Electricity Transmission Project will increase the power transfer capacity of the transmission network and enable distribution companies supply consumers with additional power.
“Together with other investments and policy measures, the project will contribute to ensuring adequate and reliable electricity supply that is necessary for Nigeria’s continued economic development. It will also support private sector participation, capacity development and better governance in Transmission Company of Nigeria and sector institutions.”
This project is part of the Power Sector Recovery Program (PSRP) by the Federal Government, which is a comprehensive package of policy, legal, regulatory, operational and financial interventions that will restore the financial viability of power sector.
In his remarks on the facility, Rachid Benmessaoud, the World Bank Country Director for Nigeria said, “The Nigeria Electricity Transmission Project will help address key bottlenecks in the transmission network and improve access to affordable and reliable electricity service to citizens,”
Mr. Babatunde Fashola, SAN, Minister for Power, Works and Housing, was also quoted as saying, “The Federal Government is committed to addressing the challenges in the public-owned transmission network and the financing being provided by the World Bank under the Nigeria Electricity Transmission Project power sector underlines this commitment.
The Federal Government anticipates that private sector financing in the privately-owned segments of the value-chain will complement the government’s efforts in bringing better quality service to citizens.”