In the context of post privatization of the power distribution process in Nigeria, the project will support banks in financing priority investments of distribution companies (DISCOs) to enhance network reliability, promote network modernization and support reduction of losses, with a view of creating a demonstrative effect on the market.
The Project will include two components:
(i) a long term credit facility to support the financing through local commercial banks of priority distribution projects to improve quality of supply, reduce technical and commercial losses and reinforce distribution networks to enable new connections; and
(ii) a technical assistance (TA) programme to support the sustainability of the credit line by promoting sharing of best practices between DISCOs and providing training to both DISCOs and commercial banks in order to enhance the bankability of DISCOs.
AFD line of credit is combined with a EUR 2.3m European grant (ITF-SE4ALL) for the implementation of the technical assistance program. The technical assistance (TA) program, under the responsibility of the Association of Nigerian Electricity Distributors (ANED). ANED with AFD support is currently performing the recruitment of an international engineering consultant team.The TA will specifically aim to increase access to financing for DISCOs and, more generally, promote the sharing of experience and good practices between DISCOs. The TA program will facilitate and supervise the implementation of the credit line, contribute to building the capacities of actors in the sector, and improve access to local bank financing. The recruitment of the consultant team was completed in Q1 2017 and the TA contract is currently under implementation.