Access Power’s subsidiary, Access Quaint Solar Nigeria Ltd, has secured a convertible loan agreement worth $1.25 million for the development of the Abiba solar project in Kaduna State, Nigeria.
The project will include a ground-mounted 50MWp solar photovoltaic (PV) plant on a 150 ha site at Manchok in in the State, which is expected to supply the much-needed clean power to the country's national grid.
According to a company press statement, the loan provider, InfraCo Africa, has issued a counter-guarantee for a 40% share of the PPA development security to the value of $400,000.
Executive director, InfraCo Africa, Alex Katon, commented: "Developing strong replicable relationships with organisations like Access Power enables us to multiply our impact and, by sharing risk, accelerate private sector development of infrastructure."
“Abiba Solar demonstrates our commitment to developing infrastructure in fragile and conflict-affected locations," Katon continued.
The clean energy developer added that through this partnership they are exploring potential opportunities to connect nearby off-grid communities using local mini-grids.
Executive chairman of Access Power, Reda El Chaar, said: “We see this project as a gateway to the widespread adoption of renewable energy in Africa’s largest economy, whilst cementing the role of ACF as an innovative platform designed to turn good concepts into bankable projects.”
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It is anticipated that the solar project will reach financial close later this year and commence construction in 2018.
On completion, Abiba Solar will generate 82,500 megawatt hours of clean electricity, enough to satisfy the daytime requirement of over 200,000 Nigerian households, the company said.
Featured image: SAREC