#1UNITED ERNATIONAL INTERNA AGENCY DEVELOPME USAID FROM THE AMERICAN PEOPLE POWER AFRICA A U.S. GOVERNMENT-LED PARTNERSHIP NIGERIA POWER SECTOR PROGRAM (NPSP) TECHNICAL ASSISTANCE SUPPORT FOR OFF-GRID ELECTRIFICATON PROJECTS IN NIGERIA January 2019#2USAID NIGERIA POWER SECTOR PROGRAM The USAID Nigeria Power Sector Program's main objective is to increase electricity availability and access in Nigeria by assisting in the development of generation, transmission, and distribution infrastructure while promoting private sector investment in the energy sector 5 Years ACTIVITY DURATION April 2018 - April 2023 Overall Goals 4 10,000 MW new generation capacity 3 million new connections IMPLEMENTATION TEAM Deloitte Consulting LLP, with support from McKinsey & Co. • WorleyParsons • . Cliffe Dekker Hofmeyr (CDH) Manitoba Hydro International (MHI) CrossBoundary TARGET OUTCOMES I. Increased Private Sector Investment 2. Improved Off-grid Connections 3. Improved Enabling Environment 4. Greater Energy Sector Liquidity 1/30/2019 2#3NPSP PROGRAM OVERVIEW OBJECTIVE Increase electricity availability and access by strengthening the enabling environment for private sector investment in the power sector, facilitating the financial closure of new power sector transactions, and enhancing the liquidity of power market operators GOALS Assist in the development of: 1. Generation capacity - 10,000 MW 2. New connections – 3 million - PROGRAM TASK AREAS $ Outcome | On-Grid (Gas Supply, Power Generation, & Transmission) Q Outcome 2 Off-Grid S 1/30/2019 Outcome 3 Enabling Environment Outcome 4 Distribution 3#4OUTCOME I (ON-GRID) INTERVENTIONS Targeted Interventions 1. Technical assistance to NDPHC to complete privatization or a concessional arrangement of NIPPs, including through provision of credit enhancements 2. Transaction advisory support to the generation subsector, including NBET, BPE, and existing GENCOS 3. Assessing viability of alternative energy procurement models 4. Support the transformation of the transmission business through targeted utility reform at TCN, development of creative transmission financing arrangements, and capital execution support 1/30/2019 4#5OUTCOME 2 (OFF-GRID) INTERVENTIONS Targeted Interventions 1. Technical Assistance to the Rural Electrification Agency (REA), including capacity building initiatives focused on project management 2. Develop business and consumer markets for off-grid solutions, focusing on solar home systems (SHS), mini-grids, and micro-grids 3. Unlock private capital for off-grid solutions providers and enabling enterprises by streamlining and expanding access to innovative financing mechanisms and supporting transactions 4. Identify and directly support the market entry of leading private sector companies to serve the off-grid market through market entry studies, go-to-market implementation strategies, and partnership facilitation 5. Develop quality standards and provide consumers with reliable information on off-grid products 1/30/2019 5#6CURRENT OFF GRID WORKSTREAMS Current Workstreams Relevant to this Workshop REA Energizing Economies Initiative (EEI) Transaction Advisory Support World Bank Nigeria Electrification Programme (NEP) GIZ Nigerian Energy Support Program (NESP) II EEI will support the rapid deployment of off-grid electricity solutions that will provide clean and consistent power to economic clusters in Nigeria, leveraging the Odyssey platform to standardize and streamline the project development process NPSP is providing transaction advisory assistance to project developers, including pitch material and financial model development, and facilitating introductions between companies and potential investors Collaboration effort targeted at reducing transaction timelines and costs associated with the World Bank's NEP, a USD 350 million tender - effort will identify potential investors and leverage the Odyssey platform to standardize and streamline the project development process - Collaboration effort targeted at reducing transaction timelines and costs associated with GIZ's Mini Grid Acceleration Scheme, a EUR 6 million tender – effort will identify potential investors and leverage the Odyssey platform to standardize and streamline the project development process#7OUTCOME 3 (ENABLING ENVIRONMENT) INTERVENTIONS Targeted Interventions 1. Technical assistance to the following key FGN institutions focused on improving the enabling environment for increased private sector investment in the power sector: a. NERC b. BPE C. MOPR d. TCN e. NBET f. MoPWH Donor Coordination Build on PSRP Principles Actively Coordinating with Donor Working Group 阻 Supporting FGN to Better Manage Development Assistance 1/30/2019 7#8OUTCOME 4 (DISTRIBUTION) INTERVENTIONS Technical Interventions 1. Implement diagnostics and develop operations improvement plans for select DISCOS 2. Develop financing plans and provide technical assistance to finance departments at select DISCOs to support healthy operations, improve the accuracy/quality/integrity of reporting for tariff applications, and enable DISCOs to achieve targets included in their privatization agreements 3. Provide training and mentoring to DISCO staff through embedded field teams to (a) strengthen billing/collections and technical service capabilities, (b) implement targeted community and gender engagement campaigns, and (c) build the capabilities of DISCO finance and Sokoto Katsina Kebbi Zamfara Niger Kwara Jigawa Yobe Borno Kano Bauchi Kaduna Gombe FCT Nassarawa Plateau Adamawa accounting departments Expected Results I. Reduction in losses 2. Increased revenue 1/30/2019 Oyo Ekiti Kogi Osun Ogun Ondo Edo Benue Ebonyi Cross River Delta Ima Rivers Akwa Bayelsa Ibom Taraba Kaduna Distribution Company Kano Distribution Company Yola Distribution Company Jos Distribution Company Abuja Distribution Company Ibadan Distribution Company Ikeja Distribution Company Eko Distribution Company Benin Distribution Company Port Harcourt Distribution Company Enugu Distribution Company 8#91/30/2019 UNITED STATES USAID ERNATIONAL | AGENCY Thank You! Balaji MK [email protected] +234 (0) 908 750 3512 USAID FROM THE AMERICAN PEOPLE POWER AFRICA