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Financing Facility for the Nigerian Power Distribution - DISCOs

Region
Western Africa
Sector
Energy
Scope
TA
Grant Amount
EUR 2,300,000
Total project cost
EUR 96,300,000
Status
Under disbursement
PFG Lead Financier
AFD

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.

The technical assistance will focus on strengthening ANED's own capacity to support the DISCOs in a range of competencies: strategic planning, market segmentation strategy, market discipline, facilitating embedded generation, developing interconnected mini-grids, developing the concept of Periurban areas. 

This Technical Assistance will:

(i) help DISCOs prepare and implement realistic Performance Improvement Plans (PIPs) as required by the Government under the PSRP;

(ii) address the issue of the lack of capacity and knowledge amongst the DISCOs, not only around their economical performance, but also to improve service delivery to their customers

(iii) assist DISCOs in developing successful case studies that will have a positive impact in other EU initiatives.

 

12/2018