FG, World Bank Discuss $1bn Power Loan

The Federal Government and the World Bank are in the last negotiation stage for the release of $1bn performance-based loan for Nigeria’s Power Sector Recovery Programme.

It was gathered that the loan was currently being prepared for final approval based on the recent discoveries  on the PSRP by the World Bank Group and the Federal Government’s progress on programme implementation.

The PSRP is a series of policy actions, governance and financial interventions to be implemented by the Federal Government in the timing of five years years.

Its target is to restore the financial viability of the power sector, improve transparency and service delivery, resolve consumer complaints, reduce losses and energy theft and reset the Nigerian electricity supply industry for future growth.

It was further learnt that officials of the World Bank recently met with the Federal Government’s representatives and both parties agreed on steps to present the PBL to the bank’s board of executive directors for consideration.

Latest documents on the PSRP obtained by our correspondent from the Federal Ministry of Power, Works and Housing in Abuja stated that “a World Bank mission from Washington DC occurred from January 22 to 26.”

It added, “The objective was to assess the PSRP implementation activities, review the PSRP deliverables with various power agencies as well as provide feedback on implementation activities. This mission is part of the World Bank’s ongoing assessment of programme activities.

“Based on this recent due diligence exercise, the PSRP’s $1bn loan to help ‘reset’ the electricity market is going into the final stage of negotiation and approval by the World Bank Board. The World Bank’s $1bn PBL earmarked to fund the programme is now being prepared for final approval based on the World Bank mission’s findings and the Federal Government’s progress on implementation.”