The total funding requirement for the first phase of the Presidential Power Initiative is €2.3bn (N991.99bn at the official exchange rate of N431.3/€), figures obtained from the Federal
Government showed.
PPI is an initiative of the Federal Government conceived during a meeting between Nigeria’s President, Major General Muhammadu Buhari (retd.), and German Chancellor, Angela Merkel, on August 31, 2018.
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It was conceived as a three-phase initiative to rehabilitate and expand Nigeria’s electricity grid through improved generation, transmission, and distribution.
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The Federal Government had to establish a special purpose vehicle, the FGN Power Company, to own and execute the PPI.
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Data obtained in Abuja on Friday from the PPI Financing Structure document, put together by the FGN Power Company, showed that about 60 per cent of the €2.3bn would come from a consortium of German banks, while other financial institutions would provide the balance.
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The document read in part, “The total project cost for PPI Phase 1 is estimated at €2.3bn in which about 60 per cent of the funds will come from the consortium of German banks to cover the offshore project cost.
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The financing for the offshore project will be sourced from German banks at a concessionary rate, which will be covered up to 90 to 95 per cent by the Euler Hermes Aktiengesellschaft (German Export Credit Agency).
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“The remaining 40 per cent of funding for the transmission and distribution onshore works will be sourced from other financiers.”
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It added, “FGN Power Company has already commenced engagement with the development finance institutions for mutual collaborations on the required onshore funding.”
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The company named some the DFIs to include the African Development Bank, Afrexim Bank, French Development Agency, as well as the European Investment Bank.
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Nigeria’s power grid has been characterised by frequent collapse lately, plunging the country into darkness repeatedly.
PPI is an initiative of the Federal Government conceived during a meeting between Nigeria’s President, Major General Muhammadu Buhari (retd.), and German Chancellor, Angela Merkel, on August 31, 2018.
—
It was conceived as a three-phase initiative to rehabilitate and expand Nigeria’s electricity grid through improved generation, transmission, and distribution.
—
The Federal Government had to establish a special purpose vehicle, the FGN Power Company, to own and execute the PPI.
—
Data obtained in Abuja on Friday from the PPI Financing Structure document, put together by the FGN Power Company, showed that about 60 per cent of the €2.3bn would come from a consortium of German banks, while other financial institutions would provide the balance.
—
The document read in part, “The total project cost for PPI Phase 1 is estimated at €2.3bn in which about 60 per cent of the funds will come from the consortium of German banks to cover the offshore project cost.
—
The financing for the offshore project will be sourced from German banks at a concessionary rate, which will be covered up to 90 to 95 per cent by the Euler Hermes Aktiengesellschaft (German Export Credit Agency).
—
“The remaining 40 per cent of funding for the transmission and distribution onshore works will be sourced from other financiers.”
—
It added, “FGN Power Company has already commenced engagement with the development finance institutions for mutual collaborations on the required onshore funding.”
—
The company named some the DFIs to include the African Development Bank, Afrexim Bank, French Development Agency, as well as the European Investment Bank.
—
Nigeria’s power grid has been characterised by frequent collapse lately, plunging the country into darkness repeatedly.
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