FEC approves contracts for modernization of TCN equipment

By Harry Awurumibe, Editor Abuja Bureau

Worried by the power challenges in Nigeria, the Federal Executive Council (FEC) presided over by Vice President, Professor Yemi Osinbajo on Wednesday approved multi-billion naira contracts for the modernization of Transmission Company of Nigeria (TCN) for the upgrade of the equipment on transmission lines.

This much was disclosed by Minister of power, Mr. Abubakar Aliyu while briefing State House Correspondents after the weekly FEC meeting at Presidential Villa, Abuja.

The Minister’s interaction went thus:
“From the ministry of power we presented three memos. The first one was approval for the award of contract for design, manufacture, supply, construction of 55 Kilometer Agu Akwa Umuchu 132 KVA double circuit transmission line and sub-station having two transformers two by 60 MVA at Umuchu Umuchu with two by 132 KV line bay extension at Agu Akwa for Transmission Company of Nigeria (TCN). This is between Anambra and Enugu State.

“Council has approved the contract in favour of Messrs Cartlark International Limited. It has two components of finance, one is the dollar component and the naira component is N4,044,309,380.69 inclusive of 7.5% VAT and 7.5% contingency payable to the Central Bank of Nigeria (CBN) at the prevailing exchange rate with the completion period of 34 months. This is part of the expansion and modernization of the TCN transmission grid and Council has approved that.

“The second one was approval for award of contract for a procurement and supply of two Fail Safe 60 MVA, 132 /33KV transformers for Transmission Company of Nigeria (TCN).

“The transformers as the name implies Fail Safe transformers. They are protecting themselves against fire outbreak. They are made in a way that once there is any fire outbreak it will not affect the transformers. So, these are modern equipments that are being procured to replace the old one, this is also part of the modernization of the equipment on the transmission lines.

“So the total control sum is N1,018,432,930.68 made up of €1,904,237.50 (offshore component) plus N155,875,000 (onshore component) inclusive of 7.5% VAT, with delivery period of nine months. This was also approved by Council.

“The third one is approval for variation of an ongoing contract for the construction of two by MVA 330 132/33 KV two by 60 MVA 132/33 KV sub-stations, these are all transformers.

“And four by 330 kV line bay extension at Akure, and four by 330 KV line bay extension each Ochigbo and Benin North was awarded by the Ministerial Tenders Board MTV commercials to messers Metelak SAL Engineering and Constructing Limited, on 27 September 2011, in the sum of $19,025,535.45 plus N1,068,728,996 inclusive of 5% VAT as at that time. So, it became obvious and necessary to seek for this variation.

“So the contractor requested and the necessary checks were done and the contract is now being increased by this memo to the council.
This approval seek to increase the contract amount from the amount stated. The offshore components still remains, the onshore is now increased to N1,460,398,661.75. This is with inclusive of 7.5% VAT and the council graciously approved this. So there is an increase of the sum of N377,669,675.75″.

Be the first to comment

Leave a Reply