FG Approves N1.9 Bn for Onitsha-New Haven Power Transmission Project

The Federal Government has approved a sum of N1.9 billion for the supply of a 746-kilometer of aluminum conductor composite core reinforced (ACCR) to be used for the re-conduction of the Onitsha New Haven 33okv transmission line. The approval was granted during the Federal Executive Council (FEC) meeting yesterday, 15 January 2013. Professor Chinedu Nebo, Minister of Power, had earlier submitted a memo to the FEC for the award of the contract. Prof. Nebo told journalists after the FEC meeting that the project would also help in creating about 3,000 jobs during the installation of the conductor. “The Transmission Company of Nigeria (TCN) intends to fund the contract for the supply of the 746-kilometer of ACCR conductor from the $135 million allocated to TCN from the proceeds of the Eurobond recently issued by the federal government,” Prof. Nebo explained. “The reinforcement of the line would improve the nation’s transmission capacity and facilitate the evacuation of stranded generation from Afam and Okpai power plants. “Council approved the award of contract for the supply of 746-kilometer of ACCR for the re-conductor in favour of Composite Technology  Corporation (a United States  firm) in the sum of $11.2million payable at the prevailing rate of exchange plus N189.43 million inclusive of five per cent Value Added Tax (VAT), with a delivery period of 20 weeks” the minister pointed out.