The International Finance Corporation, a member of the World Bank Group, on Friday announced a plan to support investments that would add 1,500 megawatts of power generation capacity to the Nigerian national grid and provide electricity for up to eight million households over the next 18 months.

IFC, in a statement, said it had already signed a mandate to provide financing to mobilise funds for one power generation company, and aimed to provide similar support for two more, adding that it would support up to three power distributions companies.

A statement from the IFC said, “These projects will add 1,500 MW to Nigeria’s grid and are part of the World Bank Group’s intervention in the sector, which is built into the Energy Business Plan. IFC is also considering participation in a gas-to-power project.”

Under the Energy Business Plan, each World Bank Group institution will leverage its competencies and products to provide solutions to projects that encourage their viability and contribute to the sustainability of the power sector, according to the statement.

IFC, it stated, would provide project structuring and investments along with tailor-made packages of risk mitigation instruments, including World Bank Partial Risk Guarantees and MIGA political risk insurance.

The statement quoted the IFC Vice-President for Sub-Saharan Africa, Latin America and the Caribbean, Mr. Jean Philippe Prosper, as saying, “The Federal Government of Nigeria has demonstrated strong commitment to successful implementation of the power sector reform so that all the pieces of a sustainable power sector are coming together.

“The World Bank Group has put together an Energy Business Plan that will allow IFC, the World Bank and MIGA to help address key project structuring issues and boost power supply to Nigerians. IFC and the other institutions of the World Bank Group are committed to supporting Nigeria with targeted interventions in the power sector that facilitate demonstration projects and boost investor confidence and contribute to better living standards.”

The Federal Government has estimated that a $10bn (N1.6tn) in annual investment is required for infrastructure development to achieve its target of 40,000 MW generation capacity by 2020.

Source: Punch (by Oyetunji Abioye)