FG APPROVES N1.9BN FOR ONITSHA TRANSMISSION LINE REPLACEMENT

The Federal Executive Council on Wednesday during its first meeting of
the year approved a N1.9bn contract for the supply of 746 kilometres
of aluminium conductor composite core reinforced for the re-conduction
of the Onitsha-New Haven 330KV power transmission line.
The ministers of Information, Mr. Labaran Maku, and Power, Prof.
Chinedu Nebo, briefed journalists on the contract, at the end of the
meeting, which was presided over by President Goodluck Jonathan.
Nebo said the contract was awarded to Composite Technology Corporation
of the United States for $11.2m.
He put the Nigerian component of the contract sum, including Value
Added Tax, at N180m, bringing the total cost to N1.9bn.
Nebo said the Transmission Company of Nigeria intended to fund the
contract from the $135m allocated to it from the proceeds of the
Eurobond recently issued by the Federal Government.
The minister noted that the reinforcement of the line would improve
the nation's transmission capacity and facilitate the evacuation of
the stranded generated electricity from the Afam and Okpai power
plants.
"The project will generate employment for about 3,000 workers during
the installation of the conductor, while the multiplier effect of
additional 400 megawatts of power to the thriving areas of New Haven,
Abakaliki and Makurdi will stimulate the generation of over one
million jobs," he added.
Nebo said the need for the renovation of the transmission line was
important because the system was about caving in, adding that the
conductors were 22 years old.
He said the renovation would provide steady power supply to Onitsha,
Enugu and Makurdi.