…Says it has so far received $1.6bn from multi-lateral donors to execute power projects
Ukpono Ukpong, Abuja
The Transmission Company of Nigeria (TCN) on Thursday said that for power supply to improve in the country, at least $4.3 billion must be reinvested into the sector to help recapitalise the Discos.
TCN’s Managing Director, Usman Mohammed, during the company’s quarterly news conference in Abuja on Thursday, noted that of the $4.3bn, the Federal Government will have to bring in its own 40 per cent stake in each of the 11 power Discos in the country amounting to $1.7bn while the Discos will have to provide the remaining balance.
“To correct the wrong in power distribution, we have to recapitalise the Discos. To recapitalise the Discos, the investors have to bring new money and that means they have to bring new partners. And what we are saying is that the government cannot be passive anymore.
“The intention was that the government would own 40 per cent in the firms and we are saying the government should bring its own 40 per cent capital. We have simulated the grid to determine the investment requirement of the Discos and we have come with $4.3bn,”Mohammed stated.
According to him, the money when shared among the 11 Discos, each distribution company will have to contribute $500m, the equivalent of its 60 per cent share.
He, however, warned that the owners of Discos should not bring money from commercial banks rather they should bring their own 60 per cent.
“When this is divided based on our study, you are going to get about $500m per Disco and we believe our study is credible. So, we are saying the government should bring its own 40 per cent of $4.3bn, which is about $1.7bn. We also said that this money can be raised.
“The government was supposed to collect about $1bn from the World Bank for the Discos. We know that the African Development Bank and the World Bank are talking about another $1bn for distribution expansion.
We are saying that the money should also be put into the recapitalisation of the Discos.
“If we get this money that is coming in, $1.7bn on the side of government, we will insist that the owners of Discos should also bring the same type of money. They should not bring money from commercial banks. They should bring their own 60 per cent.”
Also, he disclosed that TCN has so far received $1.6bn from multi-lateral donors to execute some power projects that will boost power supply in the country.
“As at today, the amount we have raised from multi-lateral donors has risen to 1.6 billion dollars to execute some power projects in the country.
“These projects include the Abuja Wheeling Scheme that will bring five sub-stations and bring a new supply route to the territory.
“The new route will be from Lafia to Abuja with 330 Kilo Volt (KV) line and two 330KV sub-stations in Abuja and put addition three numbers 132 KV sub-stations in the territory,’’ he said.
He expressed optimism that with the rate of upgrade carried on by TCN at least 2,000 to 3,000mw would be recovered which means that the grid capacity will move from 8,000MW to at least 10,000 MW, even as he blamed the distribution companies for not matching such successes with corresponding proportional upgrade at their end.
While speaking on the successes recorded so far, Mohammed revealed that out of the 800 power equipment containers abandoned at the ports due to tariff related issues, the company has succeeded in recovering 775 containers even as he noted that two were declared missing while one was found empty.