AfDB loan of $210m finances transmission expansion project in Nigeria
The African Development Bank has approved a $210 million financing package for the Nigeria Transmission Expansion Project (NTEP1), which will rehabilitate and upgrade the nation’s power lines and improve distribution and supply.
The project, which will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia, will improve the capacity and reliability of the Nigerian transmission grid where it is most constrained.
AfDB's financing, comprising a $160 million loan, and an additional $50 million loan from the Africa Growing Together Fund, will support construction of 330kV double circuit quad transmission lines and substations across the country. The project will upgrade existing 263km of 330kV lines, while adding an additional 204km of new lines to increase TCN’s wheeling capacity, stabilize the grid and reduce transmission losses.
The project, carried out by the Transmission Company of Nigeria, is part of a $1.6 billion Transmission Rehabilitation and Expansion Programme. The project will also reduce the use of small-scale diesel generators and therefore contribute to the reduction of GHG emissions by saving approximately 11,460ktCO2 per year.
