Foreign Donors Threaten To Withdraw Funding For Nigeria’s First Utility-scale Solar Project

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The corporation said plans for the 14 utility-scale power project to be delivered under the project have been stalled as it could not finalise agreements with the Nigerian Government.

Some international donors have threatened to withdraw $300m funding for its proposed Nigeria’s “first utility-scale solar project”, TheCable reports.

 

In a letter dated September 10, 2019 and addressed to the Managing Director of the Nigerian Bulk Electricity Trader, Marilyn Amebi, the African Finance Corporation noted that it had been working on the 1,000 megawatts project for a year with its partners – the African Development Bank and the Green Climate Fund.

 

The corporation said plans for the 14 utility-scale power project to be delivered under the project have been stalled as it could not finalise agreements with the Nigerian Government.

 

It added that the Independent Power Projects are in line with government’s continued focus on climate finance investments.

 

“Specifically, we hope to be able to provide total debt financing in the region of $300m including up to $100m of concessional funding from GCF.

 

“However, if we are unable to demonstrate significant progress in resolving the outstanding matters on the Power Purchase Agreements and the Put Call Option Agreements by October 2019, then key approvals, such as the $100m approval we have obtained from GCF will lapse for a second time and the funding will be withdrawn.

 

“We believe that the funding under consideration, which include a concessional element, will assist in attaining the target tariff of US7.5/kWh and also help reduce the perceived risks of investing in the Nigerian renewable energy sector and subsequently 

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183 Comments

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  • Florence Achukee December 16, 2019 05:08:32 PM
    Nice update
  • Ayomide Samuel Aina December 16, 2019 06:14:36 AM
    Why govt should find a solution to this
  • ewache benard December 11, 2019 11:21:43 AM
    good update
  • Rapheal arowosegbe December 10, 2019 08:39:47 AM
    nice update
  • Bright Lawrence December 7, 2019 03:58:21 AM
    nice update
  • Habeeb Yunus December 4, 2019 08:49:40 PM
    Electricity is still a long way away
  • Kayode A peter December 3, 2019 09:05:06 AM
    The government is not serious
  • Nwamana Chukwuemeka December 1, 2019 09:34:12 PM
    When the country is misbehaving
  • Ezekiel Emmanuel November 27, 2019 08:12:40 PM
    Nice update
  • John Kelechi November 27, 2019 11:35:16 AM
    nícє updαtє cαndч
  • Kalu Joy November 26, 2019 01:52:29 PM
    Awesome news
  • AB Emaikwu November 24, 2019 07:33:06 AM
    Interesting news update candy
  • Emmanuel Ifeanyichukwu November 12, 2019 01:47:37 PM
    Thanks for the update
  • Praise Anuoluwapo November 12, 2019 10:36:24 AM
    Good will enter them
  • Praise Anuoluwapo November 11, 2019 02:27:49 PM
    Good thing
  • Praise Anuoluwapo November 11, 2019 02:25:20 PM
    Nice one... continue
  • Divine Haggai November 11, 2019 07:39:37 AM
    Nice update
  • Divine Haggai November 11, 2019 07:38:48 AM
    Nice update
  • Onoko Daniel November 8, 2019 01:30:11 AM
    Interesting
  • Ikwu Christopher November 5, 2019 07:48:56 AM
    hmm, so what next now
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