The United States Trade and Development Agency (USTDA) is providing funding for three projects that will help to electrify many rural communities and deliver critical gas resources to support economic activity and job growth while helping US companies export goods and services.
The organisation said it has committed funding for a feasibility study to help Xenergi Nigeria Ltd. expand and construct a natural gas gathering and processing plant that will substantially increase access to customers in the Niger Delta region.
USTDA also committed funding to help the Abuja Electricity Distribution Company provide electricity to underserved communities through the implementation of up to 1,370 solar-powered minigrids with energy storage systems. USTDA Colorado’s Rocky Mountain Institute will carry out the study.
USTDA is further providing funding for a study to assist Havenhill Synergy Limited to develop off-grid solar and storage minigrid sites in up to 110 Nigerian communities. That study will be completed by Colorado-based Odyssey Energy Solutions, Inc.
“While this is a validation to the quality of the work we do in Nigeria, most importantly, it helps us to develop a portfolio of 110 solar mini-grids projects that will be finance ready at the end of this feasibility study and will impact over 300,000 off-grid population,” said Olusegun Odunaiya, CEO Havenhill Synergy Limited.
Havenhill says it wants to carry out development activities in 110 communities across Nigeria that will potentially host its portfolio of off-grid smart solar mini-grids which will serve as the first access to clean electricity by the inhabitants of the community.
According to Havenhill, this study will be done in collaboration with Odyssey Energy Solutions Inc. who will provide the technical support required for the development of the project. US firms will also have the opportunity to help Xenergi in conducting the study.
Though the organisations did not disclose how much funding is involved, findings show the USTDA receives over $50million yearly in funding. In 2017, it requested for of $80.7 million and got 25 percent more according to the US-based Center for strategic & International Studies.
While the USTDA has been targeted for elimination, “The agency boasts an export multiplier of $85 for every $1 spent on programs,” says the Center for Strategic & International Studies.
USTDA says these activities all support Power Africa, a U.S. government-led initiative to increase electricity access across the continent, and Prosper Africa, a U.S. government initiative to substantially increase two-way trade and investment between the United States and Africa.
“Nigeria is a dynamic market with many opportunities for cooperation between our private sectors,” said USTDA Acting Director Thomas R. Hardy. “USTDA’s support for these energy projects will strengthen important business ties between our countries and deliver important results for the Nigerian people.”
USTDA has now funded more than 70 projects in Nigeria focused on energy, telecommunications, transportation, healthcare, and agribusiness over the past 27 years.
The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries.
Source: Businessday
