FEBRUARY 20, 2018 – The federal government may have to repay about $20.1 million being the total value of the two per cent security bonds reportedly deposited in a JPMorgan Chase Bank account in New York by 12 financiers of the utility-scale solar independent power plants (IPPs) in Nigeria, THISDAY reports.
It was gathered that as part of the fall-out of the government’s reported review of the tariff in the power purchase agreements (PPAs) it signed in 2016 with 14 solar IPPs investors, which 12 investors have been reluctant to accept, the government may have to refund them the bonds they initially placed in the bank to affirm their commitments to the projects.
It had been reported that the Ministry of Finance had held back from signing off Put Call Option Agreements (PCOAs) for the projects due to tariffs it considered as too high. While two investors agreed to lower their tariff rates, there is still uncertainty concerning the 12 remaining investors.
However, sources close to the development informed that the two per cent security bonds paid by the investors over their projects could be recalled by the investors over the imbroglio, suggesting that the government may have to pay back what was paid by them into the JPMorgan account.
