Yemi Adedeji, Abuja
The World Bank says it has approved an International Development Association (IDA) Credit and an IDA Scale Up Facility Credit of $486 million for rehabilitation and upgrading of electricity transmission substations and lines.
It said the investments under the Nigeria Electricity Transmission Project will increase the power transfer capacity of the transmission network and enable distribution companies supply consumers with additional power.
Olufunke Olufon, World Bank communication officer in Nigeria a statement issued on Friday, said the project, with other investments and policy measures, would contribute to ensuring adequate and reliable electricity supply that is necessary for Nigeria’s continued economic development.
It added that the project would also support private sector participation, capacity development and better governance in Transmission Company of Nigeria and sector institutions.
“This project is part of the Power Sector Recovery Program (PSRP) by the Federal Government, which is a comprehensive package of policy, legal, regulatory, operational and financial interventions that will restore the financial viability of power sector. The measures that will be implemented through 2021 are aimed at improving transparency and service delivery and re-establishing investor confidence in the sector.
” The Nigeria electricity transmission project will help address key bottlenecks in the transmission network and improve access to affordable and reliable electricity service to citizens,” said world Bank
The World Bank’s International Development Association (IDA), was established in 1960 to help the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.
IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries.
Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $18 billion over the last three years, with about 54 percent going to Africa.