The Federal Government of Nigeria has signed a one-year extension of its current Management Contract for the Transmission Company of Nigeria (TCN) with Manitoba Hydro International (MHI) Ltd. of Canada.
The extension follows a three-year Management Contract signed in 2012 to manage TCN’s electrical power transmission, system operation and market operation undertakings, as well as train TCN personnel.
The contract, which was signed by TCN, MHI and the Bureau of Public Enterprises, and which would expire on July 31, 2015, has now been extended to July 31, 2016.
In a statement signed by the General Manager (Public Affairs), TCN, Seun Olagunju, MHI will continue to assume responsibility for the management and control of TCN’s entire operations, working alongside their Nigerian counterparts to transform the company into a technically and financially efficient, stable, and sustainable company.
TCN reveals that MHI working together with TCN staff have achieved a wheeling capacity of 5,300 MW and reduced system losses from over 12 percent to approximately eight percent. In addition, system collapses have reduced significantly, from 22 in 2013 to 9 in 2014, while the duration of collapses has reduced from more than 2.5 hours to approximately 30 minutes.
The fourth year of the contract will focus on further increasing TCN’s capacity to transmit power in the grid, in anticipation of rising levels of generation in the country. Additionally, MHI will facilitate the unbundling of TCN into two new organizations, the Transmission Service Provider and the Independent System Operator, while simultaneously building
the capacity of local management to take over the leadership of these organizations at the end of its contract.
The Chairman of TCN’s Supervisory Board, Mr. Ibrahim Waziri expressed satisfaction with MHI performance, noting that MHI will continue to play a role in TCN’s transformation and development. “Working together”, he noted, “we expect to build
on our achievements over the past three years”.