Nigeria has secured a $1.5 billion loan from the US-EXIM Bank to deliver solar power infrastructure in 10 different locations in the country.
This was disclosed by Adam Cortese, Chief Executive Officer, SUN Africa LLC, USA, after a meeting of a delegation of the company with President Muhammadu Buhari at the Presidential Villa, Abuja on Thursday.
He explained the loan is a government to government is facility on a concessional rate of over 20 years.
According to him, the NigerDelta Power Holding Company (NDPHC) will own the assets which he said will not only generate low-cost electricity and enable the company to pay back the loan.
Cortese stated: Once again, this is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where we’ve delivered roughly $2.6 billion of solar PV storage and transmission capacity.
“I think the important point to note here is yes, it’s a government-to-government loan, from the US-EXIM Bank to the government of Nigeria, but it’s being done on a concessional rate; over 20-year tenure, which is extremely attractive.
“What’s unique about this model is that NDPHC is going to own its own assets. So, it’s going to own its own generation base and our project will deliver a low levelised cost of electricity, which will not only allow them to pay back the loan from EXIM Bank but generate a profit on top of it.”
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