This summary covers equity/shareholder loan investments by Nigeria Solar Capital Partners Mauritius Ltd, and potentially subordinated loan investment by CDC of United Kingdom, in the Nigeria Solar Capital Partners Ltd./Globeleq/ARM Harith power project in Nigeria. The investors have requested 15-year coverage against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract. CDC’s application for MIGA coverage of their subordinated loan is still to be confirmed. MIGA guarantees would be up to US$61 million for this project including the CDC coverage (hence this document requests US$61 million); absent the CDC coverage, equity/shareholder loans by Nigeria Solar Capital Partners Mauritius Ltd would be for a lower amount of US$35 million.
The project consists in the construction of a 100 MW DC photovoltaic solar plant connecting to the national grid in 215 hectares of land in Bauchi state, northern Nigeria. It also includes the construction of 18 km evacuation line connecting the solar facility to the grid which will be owned and operated by the Transmission Company of Nigeria.
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to the project’s Environmental and Social Impact Assessment, Resettlement Action Plan, and Cumulative Impact Assessment.
Nigeria has faced increasing difficulties in recent years meeting its energy needs. The project will be one of the first large scale power production facilities in the northern part of Nigeria, an area with tremendous solar power potential. The project will contribute to expanding and diversifying the country’s energy mix, improving energy security, and reducing vulnerability to fuel prices. It will avoid GHG emissions and thus contribute to climate change mitigation.
This proposed project is aligned with MIGA’s priorities of facilitating investments into countries eligible for financing from the International Development Association and investments that address climate change.