Under the agreement, the BoI would make a commitment of the sum of $1.4 million as debt financing for the project, while the UNDP would make grant contribution of $600,000.
Acting managing director of the Bank, Mr Waheed Olagunju, stated yesterday during the signing of the agreement at the UNDP office in Abuja that its contribution and the UNDP grant would be deployed to provide solar energy solution in states where both BOI and UNDP have existing collaboration.
He said:“This partnership between BoI and UNDP is quite symbolic since it will assist in the provision of energy which is very vital for the achievement of inclusive and sustainable growth and development by addressing the myriad of challenges that have stalled the progress and prosperity of its citizenry at the bottom of the pyramid, significantly of which is access to clean and sustainable modern energy services.”
Olagunju, disclosed the pilot phase of the project which was done across the six geopolitical zones in partnership with GVE Projects Limited and Arnergy Solar Limited, involved the provision of long-term financing for the installation of micro-grid and stand-alone solar solutions in Niger State, Osun State, Gombe State, Anambra State, Edo State and Kaduna State.
According Olagunju,the provision of solar electricity to over 200 communities in these states has reduced energy costs, created more micro businesses, improved healthcare and quality of education, and generally provided a new lease of life for indigenes of these otherwise unserved communities,adding that these projects were commissioned in record time between October 6, 2015, and May 24, 2016.
Olagunjuu said the success of the pilot phase of the project had started yielding fruits, as the Bank had signed another Memorandum of Understanding (MoU) with the Gombe State Government for the replication of the projects in all the local government areas within the state.
He further disclosed that the Bank was talks with other State Governments and investors who have indicated interest in replicating the projects in their respective States, adding that the BoI was currently in partnership with 20 states and the Federal Capital Territory, while it also hoped to cover the remaining 16 states.
He further pointed out if this project was scaled across 774 local government of Nigeria with 10 micro-grid installed in each local government would generate 300MW of uninterrupted electricity.
