Planning is underway for a significant solar photovoltaic power plant project in Benue State, with foreign investment coming from Australian business figures, Messrs Paul Camp and Richard Vargas from United Solar Energy.
The project will fall under the jurisdiction of Benue Investment and Property Company Limited BIPC.
Meetings were held recently with the Managing Director of BIPC, Raymond Asemakaha, alongside representatives from various government departments including the Commissioner for Justice, Public Order and Attorney-General, Justin Gbagir, and a representative from the Commissioner for Transport and Power, Prof. Jonathan Uhaa in the city of Makurdi.
During the meeting, the investors presented an extensive framework for a Public-Private Partnership (PPP) model for the venture. This framework was carefully examined by the team and recommendations will be forwarded to the governor for consideration.
As per the outlined terms within the framework, the state government is expected to provide suitable land covering the entire project area, as well as ensure 15 years of environmental approvals, authorizations, and a signed master schedule Power Purchase Agreement (PPA) spanning 25 years.
Key components of the agreement include the provision of asset-backed green bond security (ISPO) to commercially support the project’s sustainability, along with offering tax concessions, incentives, and financial grants.
Additionally, the PPP agreement will necessitate the Benue State Government to facilitate an incentive scheme related to import tax and provide essential infrastructure, among other stipulations.
In reciprocity, the Australian investors have committed to complete funding of the project, creating employment opportunities for local residents, enhancing the skills of the local workforce, and offering training programs for unemployed youths within the state.