Nigeria to receive $1 billion World Bank funding

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} The World Bank yesterday approved a $600 million International Development Association (IDA) credit for power and gas projects in Nigeria, as part of an overall package of N173.4 billion (just over $1 billion).   The remainder of the funds is earmarked for HIV/AIDS reduction, a malaria booster project and a secondary school education project in Lagos State.   In the power and gas sectors, $200 million is for network investments and technical assistance to improve electricity supply, and the other $400 million represents partial risk guarantees (PRGs) in support of domestic gas market development.   The World Bank acknowledged that poor infrastructure in the power sector was a key constraint to growth in Nigeria, and expressed the hope that "the project will help the Federal Government's current programme to improve electrical power to Nigerians, a priority in the government's seven-point agenda for economic development."   The Nigeria Electricity and Gas Improvement Project (NEGIP), which is one of the beneficiaries of the credit, has been designed to rehabilitate existing transmission and distribution infrastructure.   The Lagos Eko Secondary Education project, is intended to transform Lagos State into a centre of excellence in Africa, by enhancing the skills of its population through quality secondary education.   According to the World Bank, Lagos "accounts for 80 per cent of the country's manufacturing value added," and needs a skilled labour force to support its industries and financial institutions.   An IDA credit is an interest-free concessionary loan, with commitment and service charges of 0.50 per cent and 0.75 per cent respectively, repayable over 35 to 40 years with a 10-year grace period.   Partial risk guarantees from the World Bank ensure payment in the case of debt service default resulting from the non-performance of contractual obligations undertaken by the government or their agencies in private sector projects.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *