There are strong indications that the embarrassing story of inability to move generated powers from dams and power plants may soon be a thing of the past as the World Bank has approved an International Development Association (IDA) credit of $486m for the rehabilitation and upgrading of Nigeria’s electricity transmission substations and lines.
A statement issued in Abuja and made available to Business Hilights Abuja Bureau chief revealed that the approval was given in Washington on Thursday last week.
Details show that the injection if well managed under the current Nigeria Electricity Transmission Project (NETP) will increase the power transfer capacity of the transmission network and enable distribution companies to supply consumers with additional power.
World Bank said the loan would also support private sector participation, capacity development and better governance in the Transmission Company of Nigeria and sector institutions.
In his remarks, Minister of Power, Works and Housing, Mr. Babatunde Fashola, expressed hope that private sector operators would complement the efforts of the Federal Government in addressing the transmission challenges of the electricity industry.
According to the Minister, “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 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 the citizens.”
Explaining the investment, World Bank Country Director for Nigeria, Rachid Benmessaoud, 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.”
While revealing that the project was part of the Nigeria Power Sector Recovery Programme by the Federal Government to drive a comprehensive package of policy, legal, regulatory, operational and financial interventions that will restore the financial viability of the power sector, Benmessaoud, said the injection, which will be implemented through 2021, were aimed at improving transparency and service delivery plus investor confidence in power industry.
