Some of the solar IPP promoters who signed Power Purchase Agreements (PPAs) with the Nigerian Bulk Electricity Trading Plc (NBET) in 2016 for 14 utility scale solar power generating plants may have been forced to consider alternative funding arrangements for their projects, due to delays by the government to finalize with the World Bank on the latter’s expected provision of a Partial Risk Guarantee (PRG) to cover for further investments in the plants, OGN reports.
A couple of the solar IPP promoters may have begun conversations with NBET to restructure their funding plans for the projects following its delay in securing the World Bank’s PRG, almost a year after signing PPAs with them, and security bonds deposited. It was learnt that parts of the changes they had reportedly shared with the NBET to advance their execution of the projects was to seek funding through equity as against debt which was initially on the table, but with the project’s execution phased out in smaller bits.
According to them, the idea would be to allow them raise funds through equity, so they can achieve some level of financial closures on a part of the projects since the World Bank’s PRG was taking time to come to reality. It was learnt that it may take the World Bank up to 9 months to finalize its PRG package for Nigeria and the 14 solar IPPs as it is meticulously working out the PRG following all the problems in the country’s privatised electricity market.