10 Firms Post Letters Of Credit For Construction Of 1,125mw Solar Plants

solar-energyTen of the 11 firms working on constructing 1,125megawatts (mw) solar plants in the country, have posted development securities to the project.

The Nigerian Bulk Electricity Trading Plc, NBET, made the disclosure in a statement yesterday.

According to the statement, it was essential for the firms to post a $20,000 per MW Development Security Letter of Credit to serve as security before the financial close.

The 11 firms signed Power Purchase Agreements (PPA) for the Independent Power Producers (IPP) plants across 10 states in July.

The NBET said that the financial closed six months from when the PPAs were signed.

“The development security will be refunded to the IPP when the closing date is met after which the IPP will begin construction of the plant”, it said.

The statement noted that the other three firms yet to post the Letters of Credit ‎(LC) were expected to post them between September 28 and October 02, 2016.

“The posting of development security by 10 out of the 11 IPPs that were due is a testament to investor confidence in the Nigerian power sector and continued interest in the development”, the statement said.

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