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FG Secures $500m World Bank Loan To Boost Power Distribution
The World Bank has advanced $500 million loan to the federal government to address identified gaps in the Electricity Distribution Companies (DisCos).
The Bureau of Public Enterprises (BPE) confirmed the loan facility on Thursday via a statement issued by Amina Tukur Othman, Head, Corporate Communications, BPE.
The facility was approved by the bank’s board of directors way back February 4, 2021 as funding support to the Nigerian Distribution Sector Recovery Program (DISREP) aimed at improving the financial and technical performance of the DisCos.
DISREP is designed to enhance the financial and technical operations of the DisCos through capital investment and the financing of key components of their Performance Improvement Plans (PIPs), which have been approved by the Nigerian Electricity Regulatory Commission (NERC).
BPE listed key areas of improvement to include, bulk procurement of customer/retail meters and meter data management systems, implementation of a Data Aggregation Platform (DAP); strengthening governance and transparency within the DisCos, program components, DISREP comprises two main components: Programme for Results (PforR), allocation of $345 million, support the implementation of selected PIP components; B P E a s implementation,investment Project Financing (IPF) and $155 million as allocation. “The purpose is to finance the procurement of meters, a data aggregation platform, and technical assistance”, BPE explained.
