Presidential Power Initiative: FGN Power Company signs $328.8 million contract with China Machinery Engineering Corporation (CMEC),

Nigeria's Federal Government (through the FGN Power Company) has signed  $328.8 million contract with China Machinery Engineering Corporation (CMEC), to rehabilitate and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI). The agreement covers Engineering, Procurement, Construction, and Financing (EPC+F) for the development of 330kV and 132kV transmission lines across the country, aimed at improving grid reliability and reducing stranded generation capacity.

The three-phase Presidential Power Initiative (PPI) is a Nigerian government program, in partnership with Siemens Energy, aimed at modernizing and expanding the national grid to achieve a 25GW operational capacity, addressing infrastructure gaps and delivering reliable electricity to Nigerians.

The project will be coordinated by FGN Power Company, a special purpose vehicle established by the federal government to oversee implementation of the PPI. Siemens Energy  and Siemens AG serve as the technical partner.

The agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning 7 brownfield and 10 greenfield sites.

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Phase 1 of the PPI focuses on quick-win measures to increase operational capacity to 7 GW. Phase 2 involves upgrading transmission and distribution systems to evacuate up to 11 GW of electricity to end-users. The final phase, Phase 3, targets a 25 GW capacity by expanding generation, transmission, and distribution systems.