PROJECTS
PROJECT SCOPE
The development objective of the Power Sector Guarantees Project for Nigeria is to increase the supply of electricity received by Nigerian consumers. The project supports one component, partial risk guarantee (PRG) series with three sub-components based on the type of transactions supported: (i) greenfield independent power producers (IPP) transactions will include the option of both credit enhancement for Nigerian bulk electricity trading (NBET) and private debt mobilization support, that is,: (a) the NBET credit enhancement guarantee, with or without a letter of credit; (b) the commercial debt mobilization guarantee; or (c) a combination of both forms of guarantees; (ii) privatization of generation companies (GENCOs) will include both gas-fired as well as hydropower companies; (iii) under privatization of distribution companies (DISCOs), the ability of the DISCOs to successfully turn around dismal customer service levels and improve revenues flows to finance investments upstream in the value chain will make or break the power sector reform efforts. Out of the eleven DISCOs being privatized, four have been identified as advanced stage candidates: Abuja DISCO, Benin DISCO, Eko DISCO, and Ikeja DISCO.
