FG to source $150m Loan from IDB

The federal government to source for $150million loan from Islamic Development Bank (IDB) for expansion and upgrade of Nigeria’s weak electricity transmission network as part of possible funding sources for the activities of the Transmission Company of Nigeria (TCN) in its 2015 capital projects mix.

A blueprint of TCN’s planned expansion, which was recently presented by its Chief Executive Officer, Don Priestman, at the inauguration of the supervisory board of the company in Abuja showed apart from the IDB, the government had other multilateral sources lined up for the funding of PHCN.

Mr. Priestman had earlier at a forum organised by the Market Operations department of TCN to commence formal registration of participants in Nigeria’s Electricity Supply Industry (NESI) noted that the TCN will require a huge amount of revenue and capital to stabilise the country’s weak transmission grid.

A summary of its planned funding for TCN from 2013 to 2017 indicates that about $6.831 billion could be obtained by the government in long-term tranches to upgrade and expand electricity transmission network in the country, starting from a $150 million loan from the AfDB, Other sources as was disclosed in the blueprint include, World Bank (NEGIP)-$290 million, Eurobond-$135 million, FGN appropriation 2013-2017-$625 million, Agence AfDB-$170 million, MYTO Capex-$11 million, Niger Delta Power Holding Company of Nigeria (NDPHC) Ltd-$1.6 billion, Chinese XD loan-$500 million, World Bank China Loan-$700 million, and others which were captioned as Chinese pivot loan-$2.5 billion.