FG To Secure $160 million AFDB Loan to Boost Power
The Minister of State for Power, Hajiya Zainab Ibrahim Kuchi, has announced plans to secure a $160 million loan from the Africa Development Bank (AfDB) to boost power transmission.
Kuchi disclosed this during a presentation to the Presidential Action Committee on Power in Abuja yesterday.
The minister said government was sourcing for funds for its power transmission project outside the budget, to boost electricity supply.
Last year, the Federal Government secured $309 million from the Exim Bank of China to fund 75 per cent of the 700 megawatts Zungeru Hydro-electric power project, which is being implemented by a Chinese consortium, CNEEC-Sino Hydro.
According to Mrs Kuchi, “the source of the funding is an arrangement with Exim Bank of China for 75 per cent of the cost while counterpart funding balance of $309 million is currently available with the ministry.”
The minister, however, added that since the project would be implemented through counterpart funding, the Federal Government would provide the 25 per cent balance.
Similarly, the United States’ Exim Bank last year, pledged to provide a credit facility of $5 billion for investors in the Nigerian power sector.