Cote d'Ivoire: AfDB provides US$ 100m credit for Nigeria's hydro plants rehabilitation

Abidjan, Cote d'Ivoire (PANA) - The Board of Directors of the African Development Bank (AfDB) has approved a financing package of US$ 100 million for rehabilitation of Kainji and Jebba hydro plants, which are among Nigeria’s cheapest and steadiest suppliers of electricity.

In a statement issued Friday, the Bank said that the package comprises a loan of US$ 80 million and $20 million equity for increasing the plants' available capacity of 917 MW to installed capacity of 1,338.4 MW.

The financing is rooted in the 'New Deal on Energy for Africa', which is founded on the Bank’s High 5 strategy on lighting up and powering Africa. It is also aligned with Nigeria’s national strategic priorities and Vision 2020 on improved access to electricity and diversification of energy sources.

"Through this inaugural private sector power transaction in the country, the AfDB aims to play a role in not only increasing generation capacity, but also, and more importantly, contributing to the addition of green power to the grid in a country traditionally dependent on thermal power," the statement said.

With the support of the Bank and other development finance institutions, the Federal Government of Nigeria’s ongoing broad power sector reforms are expected to enhance successful private sector participation in the sector.

The project is expected to deliver strong development outcomes in the country, including but not limited to increased generation capacity and diversification of energy resources; governance and fiscal effects from substantial government revenues; positive environmental effects through power generation from a renewable resource; and private sector development arising from improved business environment, local linkages and knowledge transfer.

"By relaxing energy infrastructure constraints in a high-deficit country, the project has the potential to contribute to the Bank’s inclusive growth objective," the AfDB said, noting that the contribution to green growth is potentially high, as increased use of a renewable energy resource like hydro power would lower the carbon emission intensity for the power generation system.
-0- PANA AR 16Dec2016

16 december 2016 16:04:49

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