Project Overview
JCM, along with its local partner, has been developing a 75 MW AC (96 MW DC) solar photovoltaic project in the Katsina State, Nigeria since 2014. 209 hectares of land has been secured through a Certificate of Occupancy granted for 40 years. JCM has engaged FMO as its Mandated Lead Arranger. After negotiations with government stakeholders, the PPA deadline was extended to January 2019.
LOCATION:
Katsina State, Nigeria
INSTALLATION TYPE:
Solar PV
STATUS:
Late-Stage Development
PROJECT SIZE:
75 MWAC / 96 MWDC
PROJECT COORDINATES:
12.568N, 7.8115E
MARKET OVERVIEW
Nigeria’s power sector has suffered liquidity constraints across the energy value chain due to delays in the implementation of cost-reflective tariffs. The Federal Government of Nigeria has engaged with the World Bank to formulate a broad-based recovery plan for the power sector called the Power Sector Recovery Plan (PSRP). The Power Sector Recovery Plan is a series of carefully thought out policy actions, operational and financial interventions to be implemented by the Federal Government of Nigeria to restore the financial viability of the power sector, improve transparency and service delivery, and reset the Nigerian Electricity Supply Industry (“NESI”).
The World Bank has committed to support the implementation plan of the PSRP by way of loans, technical assistance, investment, guarantees and insurances valued at $2.5 billion with an additional $2.7 billion for private investment from the IFC and MIGA support. The PSRP is expected to mark a turning point in the Nigerian power sector, after the necessary guarantees such as the World Bank PRG will be available.
The World Bank and lenders have delayed approval of guarantees and credit commitments to power projects in Nigeria until the PSRP implementation plan are implemented. This in turn, has delayed the financial close for the Pan African Solar Katsina project. The World Bank continues to work with the Federal Government of Nigeria on its Power Sector Recovery Plan implementation.
Furthermore, on March 1, 2017, The Federal Government of Nigeria through the Central Bank of Nigeria (CBN) approved N701 billion NAIRA ($2.3 billion USD) to ensure existing generating power plants are paid at least 80% of their capacity invoices and 90% of their energy invoices.