main navigation menu
World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Stay Connected
x
Nigeria

Pan Africa Solar Limited

$198 million
Power
Summary of Proposed Guarantee
Proposed

Project Facts

Project Facts

Project Facts

Nigeria
Project ID
12601
Strategic Priority Area
Energy efficiency and climate change
IDA
Guarantee Holder
FMO of the Netherlands (as PRI Agent for itself and other Development Financing Institutions)
JCM Capital
Investor Country
Canada
Netherlands
Environmental Category
B
Date SPG Disclosed
December 12, 2016
Projected Board Date
May 01, 2017
Project Type
Non-SIP
Fiscal Year
2017

Project description

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.

Environmental Categorization

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.

Development Impact

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.