THE World Bank took a pragmatic step towards the growth-drives of Nigeria electricity, by committing to provide $145 million through its first Partial Risk Guarantee (PRG) for the gas sector.
The PRG agreements, in support of the gas supply and aggregation, were signed on Monday between the World Bank and the Power Holding Company of Nigeria (PHCN), Egbin Power Plc, Chevron Nigeria Ltd, and Deutsche Bank.
Under the 10-year agreement which is based on the industry template developed by Nigeria National Petroleum Corporation (NNPC), Chevron Nigeria Ltd will provide gas to Egbin power plant and through that ensure gas availability and reliability for power generation and assisting in economic growth.
According to a statement by the bank, the event was the first time that Egbin power plant would be able to procure gas under long-term arrangements.
“PRGs are used to cover private lenders against the risk of a public entity failing to perform its payment or contractual obligations.
“The NEGIP PRG was instrumental in achieving financial closure of the Egbin GSAA transaction, by providing payment security for Chevron Nigeria Ltd for the supply of gas.
The PRG agreements, in support of the gas supply and aggregation, were signed on Monday between the World Bank and the Power Holding Company of Nigeria (PHCN), Egbin Power Plc, Chevron Nigeria Ltd, and Deutsche Bank.
Under the 10-year agreement which is based on the industry template developed by Nigeria National Petroleum Corporation (NNPC), Chevron Nigeria Ltd will provide gas to Egbin power plant and through that ensure gas availability and reliability for power generation and assisting in economic growth.
According to a statement by the bank, the event was the first time that Egbin power plant would be able to procure gas under long-term arrangements.
“PRGs are used to cover private lenders against the risk of a public entity failing to perform its payment or contractual obligations.
“The NEGIP PRG was instrumental in achieving financial closure of the Egbin GSAA transaction, by providing payment security for Chevron Nigeria Ltd for the supply of gas.
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