Page 6 - AfrElec Week 47 2020

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Nigeria’s TCN needs new grid investment

NIGERIA THE Transmission Company of Nigeria has said He said investors were invited to come and
Nigeria requires nothing less than NGN1 trillion fund some of the projects in TCN, as they would
($2.62bn) to effectively wheel electricity through recoup their investments over time.
the national grid. Adewumi said: “So the alternative way is to
TCN executive director Victor Adewumi look at project financing, where those who have
said that TCN would require the sum to make the money can come to TCN and finance prob-
the country’s power grid stable, adding that the ably the transmission lines and then look at the
$1.6bn which the transmission company was cost of energy to be wheeled on that line, spread
getting from international agencies would not it over a period of time and then get their money
be enough to stabilise the grid, Nigeria’s Punch back.”
reported. He said: “But with the current kind of fund
When asked to state how much would be that is entering TCN, there is no way TCN can
needed to get the grid to transmit electricity embark on that.
effectively, Adewumi replied, “Simply put, TCN “This is because the discos are not giving us
requires nothing less than NGN1 trillion to make the required money; we are getting less than 60%
the grid very stable. of TCN tariff.”
“For the project that TCN is financing He added: “That is even after the Nigerian
internally, relying on our IGR (internally gen- Electricity Regulatory Commission forced them
erated revenue) and the federal government to do it.”
budget system, TCN requires nothing less than However, he stated that the discos would not
NGN600bn. receive all the blame, as many power users were
“So when you look at the total, you will be involved in electricity theft.
talking about NGN1 trillion. This is a huge sum This came as senior officials of the African
of money and if you look at it critically, there is no Development Bank (AfDB) and the Enugu Elec-
way that even the federal government can pro- tricity Distribution Co. stated that the Nigerian
vide this kind of fund.” power sector was not bankable.™

HYDRO

AfDB to lend $120mn to build

Malagarasi HPP in Tanzania

TANZANIA THE African Development Bank (AfDB) has at $144.14mn. The bulk of the funding ($120mn)
approved a $120mn loan to fund the construc- will be sourced from the Bank Group’s sovereign
tion of a 50-MW hydropower plant (HPP) in window, with an additional $20mn contributed
Western Tanzania that will provide reliable by the Africa Growing Together Fund – a co-fi-
energy to the Kigoma Region. nancing fund with resources from the govern-
The Malagarasi Hydropower project has sev- ment of the People’s Republic of China that is
eral components: a run-of-the-river HPP facil- administered by the Bank. The Government of
ity; a 54- km, 132-kV transmission line that will Tanzania will provide the remaining $4.14mn.
connect to Tanzania’s national grid; a distribu- The HPP’s expected average annual output
tion network expansion operation that includes of 181 GWh will meet the electricity needs of as
rural electrification and last-mile connections; many as 133,649 Kigoma households, bringing
project management and contract administra- the region’s electrification rate more closely into
tion support; and compensation and resettle- line with the rest of the country.
ment of affected persons. The project is expected to create about 700
Bank President Adesina Akinwumi noted jobs during construction, cut the region’s elec-
that the approval of the project “is a reflection tricity generation costs to approximately $0.04/
of the Bank’s commitment to assist the Gov- kWh from the current $0.33/kWh, and also
ernment of the United Republic of Tanzania to reduce reliance on greenhouse gas (GHG) emit-
accelerate its transition to more inclusive and ting fossil fuels.
sustainable growth through the production of The cost of doing business will also fall
clean, reliable and affordable electricity.” because industry will no longer need to maintain
The project’s overall project cost is estimated costly back-up generators.

P6 www. NEWSBASE .com Week 47 26•November•2020