Power: 450MW Azura-Edo IPP Gets World Bank’s $237m Guarantee, FG’s Nod

The Federal Government has signed its backing of a $237 million World Bank Partial Risk Guarantee (PRG) for the construction of the 450 megawatts (MW) Azura-Edo Independent Power Plant (IPP).

The government has therefore also underlined its commitment to the on-going power sector reform and support for the 450MW Azura IPP which is the first of a series of new IPPs that will drive growth in Nigeria’s power sector.

Nigerian Bulk Electricity Trading Plc (NBET) gave details of the final closure in a statement on Sunday in Abuja.

NBET which is also known as the Bulk Trader said that parties to the suite of the PRG agreements included the Federal Government represented by the Ministry of Finance and NBET; the World Bank in its role as the provider of the guarantees; the project sponsors represented by Azura Power West Africa Ltd as well as various lenders represented by JP Morgan, Standard Chartered Bank, Rand Merchant Bank, Standard Bank and Siemens Bank.

NBET said the execution of the World Bank guarantees comes on the back of the release earlier this month of the legal opinion of the government’s Solicitor General confirming the validity of the put-call option agreement signed last year by the government, NBET and Azura Power.

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