| Project Detail |
MIGA entered into a contract issuing a guarantee of US$16.29 million to Konexa Power Holdings PCC of Mauritius for its equity and quasi-equity investments in Konexa Solar 1 Ltd, a C&I electrification project, in the Federal Republic of Nigeria. The guarantee is issued against the risks of expropriation and war and civil disturbance (including temporary business interruption) for a guarantee period of up to 20 years.
Located in Kaduna City, Kaduna State in Nigeria, the Project consists of the ownership, construction, operation and maintenance of distributed energy systems to be installed at two Nigerian Breweries sites, including transformers, switchgear, metering, double inverter and battery energy storage system (BESS), ring main units, and associated equipment and buildings (the C&I Assets) and the refurbishment, upgrade, extension, operation and maintenance of existing 33kV lines, switching stations, and other related interconnection infrastructure (the Interconnection Infrastructure). Under a Trading License the Project will purchase electricity from the Gurara Hydroelectric Power Plant and wheel electricity through the grid to Nigerian Breweries.
The Project is expected to deliver an average of 20.5 GWh annually from new renewable energy resources (the 30 MW Gurara hydroelectric power plant) to Nigerian Breweries displacing the existing fossil fuel based energy systems. Nigerian Breweries is a subsidiary of Heineken and has been a market leader in Nigeria in pursuing renewable energy solutions. The Project will help accelerate the company’s transition to renewable energy while increasing electricity reliability.
MIGA’s risk exposure under the guarantee will be shared with the IDA Private Sector Window (PSW). For more information on the IDA PSW, please access the IDA19 Private Sector Window website here . The PSW involvement will be via a shared first loss facility that will assist in spreading the risk and result in a reduced cost of the guarantee for the project enterprise. The Project meets the minimum concessionality principle and the amount of subsidy is estimated to be less than 0.91% of the total project cost over the envisaged 20-year guarantee period. |
