(Ecofin Agency) - The Nigerian Government has approved a new project financing model for the Transmission Company of Nigeria (TCN).

Through this new model, private investors would be invited to bid, procure fund and develop some of the company.

According to the Managing Director on TCN, Abubakar Atiku (photo), the new financing model is aimed at allowing the company reinforce and renovate the transmission grid by using private funds, which would be repaid from revenues generated.

“The federal government has approved the contractor finance model for the reinforcement and rehabilitation of projects in the TCN. The first tranche is for $200 million projects. Although this would lead to the timely completion of projects, it is premised on our getting about 60 per cent of our invoices paid, which is not the case currently,” he said adding that the first tranche of the model would soon be advertised for interested investors to bid and take up the projects.

Meanwhile, TCN on Wednesday said that power generation nationwide increased slightly to 3,528.90 megawatts (MW) from 2,662MW generated on January 22, 2017.

Anita Fatunji