The deal was concluded on Friday, August 21, 2015. Parties to the agreement included the Federal Government represented by the Ministry of Finance and Nigerian Bulk Electricity Trading Plc (NBET); the World Bank in its role as the provider of the guarantees; the project sponsors represented by Azura Power West Africa Ltd (Azura); and various lenders represented by JP Morgan, Standard Chartered Bank, Rand Merchant Bank, Standard Bank; and Siemens Bank.

The execution of these World Bank Guarantees comes on the back of the release, earlier this month, of the Federal Government Solicitor General's Legal Opinion confirming the validity of the Put-Call Option Agreement that was signed last year by the Federal Government, NBET and Azura Power.

 

The Guarantees comprise a Debt Mobilisation Guarantee (capped at USD $117 million) and a Liquidity Guarantee (capped at USD $120 million).

 

The combined value of these Guarantees serves to leverage a total investment in the Azura power plant of more than $900 million made by a set of 20 international banks and equity finance institutions drawn from nine different countries.

 

The Azura-Edo IPP, which is located on the outskirts of Benin City, comprises an open cycle gas turbine power station; a short transmission line connecting the power plant to a local substation and a short underground gas pipeline connecting the power plant to the country's main gas-supply.

 

Source : allafrica.com