Lagos, Nigeria, August 16, 2013--IFC,
a member of the World Bank Group, today announced a plan to support investments
that will add 1,500 megawatts of power generation capacity to the Nigerian
national grid and provide electricity for up to 8.0 million households
over the next 18 months.
IFC has already signed a mandate to provide
financing to mobilize funds for one power generation company, and aims
to provide similar support for two more. IFC also plans to support up to
three power distributions companies. These projects will add 1,500 MW to
Nigeria’s grid and are part of the World Bank Group’s intervention in
the sector which is built into the Energy Business Plan. IFC is also considering
participation in a gas-to-power project.
Under the Energy Business Plan each World
Bank Group institution will leverage its competencies and products to provide
solutions to projects that encourage their viability and contribute to
the sustainability of the power sector. IFC will provide project
structuring and investments along with tailor-made packages of risk mitigation
instruments that include World Bank Partial Risk Guarantees and MIGA political
Jean Philippe Prosper, IFC Vice President
for Sub-Saharan Africa, Latin America and The Caribbean, said, “The Federal
Government of Nigeria has demonstrated strong commitment to successful
implementation of the power sector reform so that all the pieces of a sustainable
power sector are coming together. The World Bank Group has put together
an Energy Business Plan that will allow IFC, the World Bank and MIGA to
help address key project structuring issues and boost power supply to Nigerians.
IFC and the other institutions of the World Bank Group are committed to
supporting Nigeria with targeted interventions in the power sector that
facilitate demonstration projects and boost investor confidence and contribute
to better living standards”.
The Federal Government of Nigeria estimates
that a $10 billion (Naira 1.6 trillion) in annual investment is required
for infrastructure development in Nigeria to achieve its target of 40,000
MW generation capacity by 2020. IFC is actively supporting this goal, by
structuring projects to attract commercial financing which will assist
Nigeria in leveraging its scarce budget resources and mobilize private
investment towards improving infrastructure in Nigeria.
Increased power capacity is an important
priority for the World Bank Group because it has been identified as a major
constraint to economic development. Nigeria has a population of over 160
million, two thirds of which face limited access to electricity, offering
enormous potential for growth in its power sector. Strong demand for increased
power is already demonstrated by urban consumers who pay the equivalent
of more than 35 US cents per kilowatt hour on self generated power, well
above the average cost of power generated by commercial power projects.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in more than 100 countries, we
use our capital, expertise, and influence to help eliminate extreme poverty
and promote shared prosperity. In FY13, our investments climbed to an all-time
high of nearly $25 billion, leveraging the power of the private sector
to create jobs and tackle the world’s most pressing development challenges.
For more information, visit www.ifc.org