SAN FRANCISCO, February 14, (THEWILL) – The United States has committed a $1 billion investment on power projects in the country through its Power Africa programme launched by President Barack Obama in 2013 to increase electricity access in sub-Saharan Africa.
This was disclosed on Tuesday by Andrew Herscowitz, Power Africa Coordinator, at the opening of the two day Distribution Company Workshop in Abuja.
Herscowitz revealed that the US had invested approximately $6.5 million in funding energy projects in the country declaring that functional power distribution companies are critical to the development of the country.
“Since Power Africa was launched, USTDA has committed approximately $6.5 million in funding for 10 activities supporting Nigeria’s energy sector, which could leverage up to $2.7 billion in investment,” he said.
“$50 million in financing from the Oversea Private Investment Corporation (OPIC) to Lumos to scale up it’s off grid solar power service to about 200,000 Nigerian homes and businesses. $1 billion in project pipeline.
“Well functioning DISCOs are critical to the delivery of electricity in Nigeria. If the DISCOs do not work, the energy sector as a whole does not work.
“Nigeria, like any country, needs to see capital flowing through the entire energy value chain, if there is no money for distribution, there’s no payment to electricity generators, and very little incentive for private sector investment.
“I want to stress that Power Africa will continue our work in Nigeria and across sub-Saharan Africa to increase access to electricity. The U.S government’s commitment to Africa’s growth and development remains strong, as was outlined in last year’s bipartisan electricity Africa Act.”
Power Africa has supported power companies in the country to the tune of $100 million capital expenditure credit enhancement facility with a corresponding $6.5 million in technical assistance and another r$1.5 million for limited commodity to turn around the DISCOS.
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