This summary covers equity/shareholder loan investments by JCM Capital of Canada and a non-shareholder loan by FMO of the Netherlands to the Pan Africa Solar Ltd power project in Nigeria. JCM Capital has requested 20-year coverage against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract. FMO is seeking coverage for itself and a syndicate of European development financial institutions for a period of up to 20 years against the risks of transfer restriction and breach of contract. MIGA is considering up to $198 million in guarantees.
The project consists of the development, construction, and operation of a 96 MWp photovoltaic solar plant connecting to the national grid. It will be built on about 200 hectares of land in Katsina state, northern Nigeria, and will include the construction of a 1.0 km transmission 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 B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Impact Assessment, Addendum and Livelihood Restoration Plan Strategy.
Nigeria has faced increasing difficulties in recent years meeting its energy needs. The project will be the one of 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.