FG extends power management contract to 2016

The Federal Government has extended the management contract of the Transmission Company of Nigeria (TCN) with Manitoba Hydro International Ltd. (MHI) of Canada by one year.
This is contained in statement by Mrs Seun Olagunju, the General Manager of TCN on Tuesday.
The extension followed the expiration of a three-year management contract signed in 2012 for MHI to manage TCN’s electrical power transmission, system and market operation undertakings as well as train TCN personnel.
The three-year contract, which was signed by TCN, MHI and the Bureau of Public Enterprises (BPE), had an expiration date of July 31, but was extended to July 31, 2016.
The statement further stated that MHI would continue to assume responsibility for the management and control of TCN’s entire operations alongside their Nigerian counterparts.
It said that MHI would transform the company into a technically and financially efficient, stable, and sustainable company.
The statement added that MHI working with TCN staff had achieved a wheeling capacity of 5,300 MW and reduced system losses from over 12 per cent to approximately eight per cent.
It said that system collapses had reduced significantly from 22 in 2013 to nine in 2014, while the duration of collapses had reduced from more than 2.5 hours to approximately 30 minutes.
According to the statement, the extension period will enable TCN to transmit power in the grid in anticipation of rising levels of generation in the country.
“MHI will facilitate the unbundling of TCN into two new organisations, the Transmission Service Provider and the Independent System Operator.
“While simultaneously building the capacity of local management to take over the leadership of these organisations at the end of its contract,” it said.
The statement further said that the Chairman of TCN’s Supervisory Board, Mr Ibrahim Waziri expressed satisfaction with MHI performance.
Waziri said that MHI would continue to play a role in TCN’s transformation and development of the sector.