Nigeria has signed a deal worth up to $200 million (157 million euros) with two French firms to improve electricity supply in the power-starved country, a statement said Wednesday.
French power giant EDF and ETDE will first conduct a feasibility study before constructing a high-voltage transmission line and power distribution substations, the statement from Nigeria’s Ministry of Power said.
“EDF and ETDE will source the funds from their home governments to execute specific feasibility studies as well as select a specific project that will help expand the transmission grid,” the statement said.
It added that initial talks on the deal began in 2008.
While definitive figures were not disclosed, Nigeria’s Power Minister Bart Nnaji said the parties will agree on a project estimated to cost between $100 million to $200 million.
Despite being Africa’s largest oil producer, Nigeria is plagued daily by lengthy power cuts, with businesses forced to rely on generators to ensure regular electricity supply.
The government has been seeking to privatize electricity supply.