20 October 2011
The Federal Government Wednesday entered into an agreement with the
America government which will allow Nigeria’s Independent Power Plants (IPPs) access to about $1.5 billion concessionary loan for the acquisition of equipment and services from the . US
A Memorandum of Understanding (MoU) for the $1.5 billion long-term single digit interest rate loan was signed between the Minister of Power, Prof. Bart Nnaji, on behalf of the Federal Government and President of US Export Import Bank (Ex-Im Bank), Mr. Fred Hochberg, for the US government in Abuja.
The facility is managed by the US Ex-Im Bank, a government agency that provides export-credit insurance and financing, among other services, to help foreign buyers purchase US goods and services.
Prospective investors in
Nigeria’s emerging power sector will be expected to plug into the loan aimed at securing financial backup for the purchase of power equipment and services from renowned manufacturers of power equipment. US