FG secures $3bn World Bank loan for power sector

FG secures $3bn World Bank loan for power sector

The Federal Government has secured the loan of $3 billion for the power sector. The minister of Finance, Zainab Ahmed, said this while addressing the press on the outcome of the just-concluded annual meeting of the World Bank and the International Monetary Fund (IMF). She explained that the loan will be disbursed in four tranches

The Federal Government has secured the loan of $3 billion for the power sector.

MINISTER OF FINANCE, MRS ZAINAB AHMED

The minister of Finance, Zainab Ahmed, said this while addressing the press on the outcome of the just-concluded annual meeting of the World Bank and the International Monetary Fund (IMF).

She explained that the loan will be disbursed in four tranches and the first tranche will be disbursed in Apr 2020.

She said that $1 bn will be allocated to the Distribution network and part of it will be used to close the gap between current tariff and actually tariff charged by the Discos, adding that this will lead to the elimination of subsidy in the power sector.

Ahmed also said part of the loan will also be used to settle previous obligations which have crystallised.

She further said that $1bn to be allocated to the distribution network will come last and it will be a loan to the Discos.

The minister said the first $2bn will be used to upgrade the transmission network and implement necessary reforms in the sector.

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