The World Bank Group on Tuesday restated its commitment to continue to support the Nigerian Government’s efforts to mobilise private sector investments in the newly privatised power distribution companies.
The Group, through one of its affiliate agencies, the International Finance Corporation (IFC), recently unfolded its Energy Business Plan; designed to help support Nigeria’s power sector develop additional capacity to enhance its current output.
That plan outlines the World Bank Group’s support for the generation of about 1,500 mega watts (MW) of additional electricity into the national power grid through the provision of support to a number of greenfield independent power projects (IPPs) that would help improve electricity supply for about 8 million households.
The Group said the arrangement was in addition to potential investments in the newly privatised distribution companies, and support to gas production and infrastructure projects in the country.
Under the Energy Business Plan, each World Bank Group institution, including the IFC, would leverage its competencies and products to provide solutions to projects that encourage viability and contribute to the sustainability of Nigeria’s power sector.
Specifically, under the plan, IFC would provide project structuring and investments along with tailor-made packages of risk mitigation instruments that include World Bank Partial Risk Guarantees and political risk insurance to help develop power generation, distribution, and gas supply to the power plants.
As part of its support under the plan, the IFC, a member of the World Bank Group, would, in partnership with EnergyNet Limited and key stakeholders, host a three-day Power Investors Summit starting on Wednesday in Lagos. The summit is part of a broader effort to facilitate investments in the power sector in Nigeria.
The Power Investors Summit is expected to provide a platform for international project sponsors and other interested parties to explore investment opportunities available in the country, particularly in the newly privatised power generation and distribution successor companies of the Power Holding Company of Nigeria (PHCN).
These include projects ranging from gas-to-power, infrastructure, renewable energy and independent power producers (IPPs), which are set to transform Nigeria’s power sector as a result of the on-going power sector reforms.
The Director, IFC Infrastructure and Natural Resources, Bernard Sheahan, said IFC was supporting the Power Investors Summit to help the Nigerian government showcase the positive sector reforms achieved.
”The Nigerian government is putting the right ingredients together for a sustainable power sector, making this the right time to crowd in private sector investment to solidify and put the sector on a long term path,” Mr. Sheahan said.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. It works with private enterprises in more than 100 countries, using its capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity.
Information from Premium Times was used in this report.