InfraCo Africa invests $1.65 million in Nigerian solar project
InfraCo Africa said it signed a convertible loan agreement with Access Quaint Solar Nigeria Limited to construct a ground-mounted 50 MW photovoltaic solar plant in Kaduna State.
InfraCo Africa, an Africa-focused infrastructure development facility, has signed an agreement to provide a $1.65 million financing to support a solar power project in Northern Nigeria, according to a statement released on Thursday.
The London-based organization said it signed a convertible loan agreement with Access Quaint Solar Nigeria Limited, winner of the 2015 Access Co-Development Facility (ACF) competition based on its 50 MW Abiba solar plant in Kaduna State.
InfraCo Africa said its financing consists of a $1.25 million loan facility and a $400,000 counter-guarantee for a 40 per cent share of the solar plant’s power purchase agreement.
“Developing strong replicable relationships with organisations like Access Power enables us to multiply our impact and, by sharing risk, accelerate private sector development of infrastructure,” said Alex Katon, Executive Director of InfraCo Africa. “Abiba Solar demonstrates our commitment to developing infrastructure in fragile and conflict-affected locations.”
The Abiba solar project will construct a ground-mounted 50 MW photovoltaic solar plant on a 150-hectare site at Manchok, Kaduna State. The $100 million plant will supply power to the national grid and will be Kaduna State’s first solar project. The project will reach financial close in late 2017 and commence construction in 2018.
When completed, the Abiba solar plant will generate 82,500 megawatt hours of clean electricity, which is enough to satisfy the daytime requirement of over 200,000 households.
“We see this project as a gateway to the widespread adoption of renewable energy in Africa’s largest economy, whilst cementing the role of ACF as an innovative platform designed to turn good concepts into bankable projects,” said Reda El Chaar, Executive Chairman of Access Power.
Established in 2004, InfraCo Africa is a member of the Private Infrastructure Development Group (PIDG) – a government-funded body that mobilizes private funding for infrastructure investment in Sub-Saharan African and Asia. The PIDG is a multilateral organisation that is funded by donors from seven countries (the United Kingdom, Switzerland, Australia, Norway, Sweden, Netherlands, Germany) and the World Bank Group.
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