By Chimezie Godfrey
The U. S Agency for International Development (USAID) and Infrastructure Credit Guarantee Company 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 N13 billion ($35.6million) co-guarantee for 15-years bond, will allow Gel, Utility Limited, a member of Genesis Energy Group that develops, operates and provides both on and off grid power solutions, access long term local currency financing at a reasonable interest rate and tenor.
“As a result, more consumers in Port-Harcourt will have access to a reliable power supply.”
Earlier at the signing ceremony, InfraCredit Chief Executive Officer, Chinua Azubuike said InfraCredit is committed to facilitating investments in the power sector by providing guarantees in collaboration with its strategic partners such as Power Africa.
“We can achieve our mutual objective of bridging the power infrastructure gap.
Azubuike stated that the transaction with Gel, the first beneficiary of the co-guarantee arrangement between InfraCredit and USAID demonstrates how private sector led institutions can effectively access the Nigerian debt capital market to fund the expansion of their power generating and distributing capacity.
He also revealed that the proceed of the bond stemming from this 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 term financing with long term local currency debt.