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ARTICLE · 20 JULY 2016

Now That Azura Has Closed

Perchstone & Graeys
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The successful closure of the US$900 Million transaction for the Azura-Edo Independent Power Plant signifies the emergence of a new phase in Nigeria's power industry.

NigeriaEnergy and Natural Resources
Perchstone & Graeys
Perchstone & Graeys
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The successful closure of the US$900 Million transaction for the Azura-Edo Independent Power Plant signifies the emergence of a new phase in Nigeria's power industry. The deal is a first of its kind in many respects. It is the first Independent Power Plant to be built with 100 percent private funding. It is, as well, the first Nigerian power generation project to receive the World Bank Partial Risk Guarantee (WPRG) (worth US$237 million) and also receive insurance from the Multilateral Investment Guarantee Agency (MIGA). Both instruments provide guarantees to the investors (debt and equity) in the event of a premature termination of the project. In light of its trailblazing nature, it becomes imperative to analyze the structure of the transaction which can serve as a future guide to power project development in Nigeria; with particular reference to ensuring commercial viability and project de-risking.

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