The World Bank has restructured a $350 million loan to Nigeria to ensure the completion of seven vital power plants as part of the Nigeria Electrification Project (NEP). The restructuring includes an extension of the project’s deadline to December 31, 2024, to address delays caused by various challenges.
The NEP, initially approved on June 27, 2018, aims to improve electricity access for households, public institutions, and underserved micro, small, and medium enterprises (MSMEs). Despite notable progress, including connecting nearly 59,000 households through mini-grid grants and 1.09 million households via standalone solar systems as of June 2024, the project faced delays due to geotechnical issues, community disturbances, and COVID-19 disruptions.
The Restructuring Paper highlights the need for an additional five months to complete the seven power plants. Key milestones include the anticipated completion of the Maiduguri and Calabar sub-projects by the end of September 2024, with the final quarter focusing on site handover and the initiation of the sustainability plan.
At the University of Abuja, the power plant project is 65 per cent complete, with challenges such as rocky ground and a deteriorated access road requiring additional anchorage work and road construction. The Michael Okpara University of Agriculture, Umudike project is 85 per cent complete, having faced material discrepancies that necessitate replacing transmission line components. The University of Calabar & Teaching Hospital project, also 65 per cent complete, experienced issues including a collapsed drainage network and unsuitable soil, necessitating new drainage channels and flood reclamation.
The University of Maiduguri & Teaching Hospital project stands at 79 per cent completion, with challenges including a refuse dump site and unsuitable soil, requiring land reclamation and transmission line construction. At the Federal University of Agriculture, Abeokuta, the project is 90 per cent complete, with difficulties related to basement rock and drainage discharge, necessitating extension of the drainage channel and cable diversion. The Federal University, Gashua has completed its downstream distribution network, but additional work is needed due to increased demand. Lastly, the Nigeria Defence Academy, Kaduna project is only 15 per cent complete, facing issues with a vandalised transmission line and requiring infrastructure replacement and new transmission line construction.
As of the latest update, out of the $350 million commitment for the NEP, $265.32 million has been disbursed, leaving an undisbursed balance of $84.68 million. The revised completion timeline aims to ensure the full delivery of the project’s objectives and address the unexpected challenges. encountered.
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