FG secures $500m World Bank loan to boost DisCos

DisCos

The federal government has secured $500million loan from the World Bank to improve electricity Distribution Companies (DisCo) performance.

This was contained in a press statement by the Bureau of Public Enterprises (BPE), Head, Public Communication, Amina Tukur Othman, issued on Thursday, May 30.

She said, approved on February 4, 2021, by the World Bank Board of Directors, this funding supports the Nigerian Distribution Sector Recovery Program (DISREP) aimed at improving the financial and technical performance of the DisCos.

The Distribution Sector Recovery Program (DISREP), said the Head of Public Communications, is designed to enhance the financial and technical operations of the DisCos through capital investment and the financing of key components of their Performance Improvement Plans (PIPs), which have been approved by the Nigerian Electricity Regulatory Commission (NERC).

She said the key areas of improvement include:

• Bulk procurement of customer/retail meters and meter data management systems.

• Implementation of a Data Aggregation Platform (DAP).

• Strengthening governance and transparency within the DisCos.

• Program Components

• The DISREP comprises two main components:

• Program for Results (PforR):

• Allocation: $345 million

• Purpose: Support the implementation of selected PIP components.

• Implementation: Bureau of Public Enterprises (BPE)

• Investment Project Financing (IPF):

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• Allocation: $155 million

The Purpose is to finance the procurement of meters, a Data Aggregation Platform, and Technical Assistance.

The statement added that the DISREP loan, particularly the Investment Project Financing (IPF) component, is expected to significantly benefit the Nigerian Electricity Supply Industry (NESI) by: Closing the metering gap

• Reducing Aggregate Technical, Collection, and Commercial (ATC&C) losses

• Improving remittances and liquidity for the DisCos

• Enhancing the reliability of power supply

• Increasing transparency and accountability within the DisCos.

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