UNDP partners BoI, others on bankable emissions reduction projects

SEEKING to reduce energy generation’s contribution to emission of greenhouse gases and climate change, stakeholders in the country have been advised to explore opportunities inherent in bankable emissions reduction projects.

The projects are promoted by United Nations Development Programme’s (UNDP) under the energy efficiency project, which is aimed at opening up investments in emissions reducing projects such as structuring wind, solar, bio-mass, geothermal and small-scale hydro-power projects.

Last week, a three-day training titled: ‘Renewable Energy Project Finance’ organised by UNDP Nigeria Country Office in collaboration with Bank of Industry and Euromoney Training was held in Lagos for financial institutions on the risk assessment and allocation in renewable transactions, green credits, tax credits, Carbon credits, trading markets, cash flow analysis for renewable deals, debt and equity alternatives for financing renewable energy.

UNDP Deputy Country Director, Mr. JanThomas Hiemstra drew attention to a recently released statistics of the poverty rates in Nigeria that the energy need for the populace that fall within this statistics is paramount. He expressed satisfaction that UNDP through the Implementing agency BOI was implementing the Access to Renewable Energy Project.

BOI managing director, represented by the GM Operations, Mr. Austin Jo-Madugu, stated that within the overall framework of increasing access to modern energy services, the strategy for the Access to Renewable Energy Programme is aimed at fostering pro-development energy services by facilitating an expansion of renewable energy services accessible to MSMEs, renewable energy investments by building up capacity within the financial sector, as well as, among users and providers of energy services, promote policies and institutional frameworks for an inclusive renewable energy market development.

“We believe bankers will be able to understand how to structure and access renewable energy projects in Nigeria, this we hope would allow for more financing of such project in Nigeria. He explained that the three days training is one of the activities of the Access to renewable energy project, which is housed by the Bank of Industry.”

Megan Rapp from USAID in her presentation on loan guarantees explained how USAID is willing to partner with financial institutions in Nigeria so that they can access loan guarantee that can be used to reduce the risk of renewable energy projects.

Project Manager BOI/UNDP AtRE, Mr. Segun Adaju gave an update of the BOI/UNDP Access to Renewable Energy project adding that the objectives of the project was to build capacity of MSMEs to incorporate renewable energy options either as a business in and of itself, or as service for business development.

He also gave a rundown of activities that the project management team have embarked on to include the interactive session with financial institution and the Investment forum that provided as interface between project developers and financial institutions. At these forums there was a resounding call for capacity development.

The participants came from Bank of Industry, Access Bank, FCMB, UBA, Zenith Bank, Skye Bank, Sterling bank, Keystone Bank, Unity Bank, Nexim Bank, StanbicIBTC, Nefund, Aterios Capital and MBC Securities.

The Guardian