November 27, 2022

InfraCredit, a specialised infrastructure credit guarantee institution, has announced credit enhancement of Darway Coast Nigeria Limited’s green debt issue.

The debt issue is under a co-financing arrangement with the £10 million climate finance blending facility funded by the United Kingdom Foreign, Commonwealth and Development Office (FCDO), an initial transaction under InfraCredit’s Clean Energy Funding Programme.

The programme seeks to aggregate, de-risk and unlock domestic institutional investments to support eligible clean energy projects in Nigeria to contribute towards meeting the country’s universal electrification goal by 2030 and the SDG 7 target of ensuring access to affordable, reliable, sustainable, and modern energy for all, whilst putting the country on a path to achieve net zero emissions by 2060.

In February 2022, the UK announced a £10 million local currency blended co-financing facility with InfraCredit to help de-risk, reduce the capital cost and catalyse at least an equivalent amount in private investment from domestic institutional investors to support off-grid clean energy companies to increase energy access for unserved and underserved people and small businesses in Nigeria.

Speaking on the transaction, Managing Director of Darway Coast Nigeria Limited, Mr. Henry Ureh said for mini-grid developers, access to long term affordable local currency finance is critical for sustainability and scale.

“That mini-grid developers like us can now access patient green capital in naira from domestic institutional investors, to construct off-grid infrastructure for renewable energy access to unelectrified rural communities in Nigeria for productive use, is unprecedented.  We sincerely appreciate the team at InfraCredit and the FCDO for this novel structure which will reduce the financial burden of clean energy developers like Darway Coast, and help the off-grid renewable energy market to scale sustainably,” Ureh said.

Chief Executive Officer, InfraCredit, Chinua Azubike, said Nigeria’s Integrated Energy Planning Tool estimated that up to $16.4 billion of funding will be required to finance off-grid infrastructure for solar mini-grids and stand-alone solar systems that will electrify 621,000 unserved communities not connected to the grid, which represents 98 per cent of the identified settlements without energy access.

“However, Nigerian domestic institutional investors assets under management in local currency, is estimated at over $35 billion, but less than one percent is currently invested as domestic credit to the private sector due to perceived risks and limited quality projects.

“We are very excited by the success and scalability of this innovative blended finance transaction anchored by UK FCDO and InfraCredit, because it demonstrates a strong case for donors and concessional financiers, to make smart use of impact-seeking capital to de-risk, reduce the capital cost and mobilise private sector financing towards green life-saving investments that can unlock domestic pools of resources that will promote green growth and climate resilient development by accelerating Nigeria’s universal energy access, whilst transitioning the country to a low-carbon economy that will create jobs, reduce poverty, promote gender inclusion and stimulate local economic growth,” Azubike said.

The UK Deputy High Commissioner in Lagos, Ben Llewellyn-Jones said it was a pleasant that the innovative UK-funded blended finance facility, managed by InfraCredit, has supported the first green-certified local currency debt issue for off-grid solar in Nigeria.

Aeronautical information management project to be completed by 2023, by Sirika

Minister of Aviation, Sen. Hadi Sirika, has said the National Airspace Management Agency (NAMA) would complete the implementation of the aeronautical information management project in 11 airports by 2023.

Sirika made the disclosure yesterday in Abuja at the President Muhammadu Buhari Administration Score Card (2015-2023).

Read Also: Agusto & Co affirms InfraCredit “Aaa” rating

He explained that the project was designed to facilitate the automation of our aeronautical information management system.

“It will also provide facilities for voice and data (ground to ground) communication between Air Traffic Control units for coordination of flight movement.

“The Project which is scheduled for completion in 11 airports by February 2023, will deliver electronic flight planning facilities, electronic flight crew briefing facilities, electronic notice to air men and electronic aeronautical information publication,’’ Sirika said.

Sirika said that NAMA also implemented Free Routing Airspace (FRA) in Nigeria in November 2021 in line with the International Civil Aviation Organisation (ICAO) global priorities to enhance airlines recovery after the severe impact of COVID-19.

He said that the implementation of FRA in Nigeria was the first of such implementation in the whole of continental Africa.

“The FRA implementation is designed to allow aircraft fly the most preferred flight trajectories taking advantage of wind direction and wind speed to fly shorter routes and shorter times within Nigerian airspace.

“This is making significant savings on fuel and CO2 emissions,’’ the minister said.

According to him, the implementation of FRA has provided in some instances, as much as 10 minutes flight time savings and hundreds of kilograms of fuel savings.

The minister said that it also reduced pilot workload and enhanced efficiency as well as increased flight operations over the airspace.

According to him, NAMA has since 2015, implemented performance based navigation for almost all Nigerian airports whether Federal, State, Private or Military.

“NAMA in collaboration with ICAO has implemented several Performance Based Navigation (PBN) Regional Routes for increased connectivity between various destinations across Africa.

“Some of the NAMA achievements included the procurement of a new King Air Beechcraft 350i aircraft for flight calibration in August 2019.

“The successful installation of Category III Instrument Landing Systems at Lagos (RWY 18R) and the successful installation of Instrument Landing System Category III at Abuja (Runway 22),’’ said the minister.

According to him, the agency also implemented the Safe Tower Project at Katsina and Zaria in 2019. This project provided automated air traffic management systems for enhanced safety and efficiency.

He said that system also provided Voice Communication and Control System for air-ground and ground to ground communication.

According to him, this includes automatic weather observation to the control tower as well as voice data recording system. (NAN)

Leave a Reply

Your email address will not be published. Required fields are marked *