AfDB approves US$1.5mn grant for Jigawa on-grid IPP solar power procurement programme in Nigeria

JigawaAfrican Development Bank (AfDB) has approved a US$1.5mn grant to support the Nigerian government’s implementation of Phase 1 of the Jigawa 1-GW Independent Power Producer (IPP) solar procurement programme

The grant has been approved from the sustainable energy fund for Africa (SEFA), a US$90mn multi-donor facility, launched in 2012, funded by the governments of Denmark, the UK, the United States and Italy to support Africa’s sustainable energy agenda.

This new grant focuses on developing renewable energy and increasing energy access on the continent, said AfDB.

At full one gigawatt capacity, the programme is set to assist the government to achieve its national goals of reaching 75 per cent electricity access by 2020 and electrifying unserved and underserved areas, particularly in northern Nigeria where access rates are lowest and increasing the share of renewable energy in the energy mix to 30 per cent by 2030.

The approved SEFA grant will support the completion of technical and feasibility studies and the design of a master plan for the entire programme site.

AfDB will also provide additional support to the government by funding a transaction advisor to design and launch the competitive IPP procurement.

Commenting on the project, Amadou Hott, vice-president for power, energy, climate and green growth at AfDB, stressed that the approval solidifies the bank’s commitment to Nigeria in resolving the chronic power shortage and ensuring increased access to sustainable and cost-efficient power.

He added, “It is important for us to deliver a seamless implementation and provide necessary support to the government to conduct an effective IPP procurement process.”

An intergovernmental team led by Rural Electrification Agency of Nigeria will be the implementing agency for the grant.

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