PRGs are credit enhancements issued on behalf of governments and generally cover certain political and commercial risks that lenders and investors will not take over, as these are country-specific issues beyond their control. Such risks can include political violence, monetary and regulatory risks, and various forms of state offending. The project implementation agreements consist of a first 20-year aaming contract (AAE) with the possibility of extending its duration by five years. After 25 years of concession Build Own Operate Transfer (“BOOT”), the project and assets are donated to GoG. Other proposed implementation sub-contracts include the outsourcing of engineering, procurement and construction (“EPC”), the legend of procurement, operation and maintenance (“O-M”), and a set of project security measures. Originally conceived as an emergency PPI, this project is now a long-term project. The project is at an advanced stage after Parliament won Parliament`s approval in October 2016 for the PPA and the PCOA. The expected financial accounts were in December 2016. In addition, the Ghana Utility Regulatory Commission (“PURC”) approved the project tariff. The Ghanaian authorities also approved the local environmental and social impact assessment. International approvals for the Bridge Power Fast-Deployment Project have not yet been issued.
Nigeria`s Ministry of Power has signed two Put/Call option agreements with local solar developers Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited. The two companies plan to build two photovoltaic installations with a total capacity of 120 MW. GSs are legal commitments made by governments in their agreements with lenders and project proponents. GSs are considered potential liabilities to be paid by the public treasury when the commitment is in progress. As a general rule, GSS covers payment and termination risks under the AEA, which are under government control and are therefore appropriate for them. Governments do not provide comprehensive GSs for project-funded operations. In the 160 MW Noor 1 solar project, the Kingdom of Morocco has granted the African Development Bank a guarantee to cover financial deficits resulting from the higher tariff that the Moroccan Solar Energy Agency pays to ProjectCo and the lower resale rate it sells to the Moroccan market. Babatunde Fashola, Nigeria`s Minister of Energy and Housing, has signed two put/call option agreements (PCOA) with Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited. The agreements cover two major photovoltaic projects that the two Nigerian developers want to build in the country. Afrinegia Nigeria Limited intends to build a 50 MW solar facility, while the CT Cosmos project would have a capacity of 70 MW.
The department did not provide further details on the projects. A PCOA is an alternative to a traditional public guarantee or letter of support. These instruments have generally been used to fulfill the obligations of a government agency or department to pay compensation at the end of a project. As a guarantee or letter of support, a PCOA can be set up for a PIP, PPP or project funding when some form of government support is deemed necessary to attract investment. Unlike a guarantee or a conventional letter of support, the PCOA, if properly structured, can avoid being considered a liability in the host government`s balance sheet. This situation is extremely attractive to host governments that are concerned about the weight of their debt or have commitments to the World Bank or IMF. The signing of the Putcall option agreements (Pcoa) by Nbet Afrinergia and Ct Cosmos Solar Energy Designer.