USAID, InfraCredit partner to increase electricity access in Rivers

By Chimezie Godfrey

The U. S Agency for International Development (USAID) and Infrastructure Credit Guarantee Limited (InfraCredit) have signed partnership agreement to provide increased access to electricity to consumers in Rivers.

The USAID Mission Director, Stephen M. Haykin, said the 13 billion ($35.6million) co-guarantee for 15-years bond, allow Gel, Utility Limited, a member of Genesis Group that develops, operates and provides both on and off grid power solutions, access long local currency financing at a reasonable interest rate and tenor.

pointed out that the financing terms, consistent with a favourable investment environment, permit Gel to expand its generation and distribution capacity in areas with low access.

“Today’s partnership marks the ever risk sharing arrangement between USAID and InfraCredit and emphasizes both institutions’ dedication to supporting the development of Nigeria’s power .

“As  a result, more consumers in Port-Harcourt have access to a reliable power supply.”

Earlier at the signing , InfraCredit Chief Executive Officer, Chinua Azubuike said InfraCredit is committed to facilitating investments in the power by providing guarantees in collaboration with its strategic partners such as Power .

“When able to draw on (Power ’s) capacity, networks, competence and credit quality.

“We can achieve mutual objective of bridging the power infrastructure gap. 

Azubuike stated that the transaction with Gel, the beneficiary of the co-guarantee arrangement between InfraCredit and USAID demonstrates how private led institutions can effectively access the Nigerian debt capital market to fund the expansion of their power generating and distributing capacity.

also revealed that the proceed of the bond stemming from co-guarantee agreement will fund  the implementation of the excess power program in collaboration with the Nigerian National Petroleum Corporation and fund replacement of Gel-Unity Limited’s current short financing with long local currency debt.