Five years after $200 million fund disbursement, solar project yet to commence

The House of Representatives on Wednesday has expressed concerns that five years after funds had been released for solar energy project in two North-Eastern states, the project has yet to commence.



The House had expressed concerns over the disbursement of the $200m Clean Technology Trust Fund meant for the funding of solar energy project in the North-East zone.

The concern was sequel to a motion by Rep. Shehu Musa (Bauchi-APC).

Moving the motion, Musa noted that sometime in May 2012, the CTF Trust Fund Committee nominated Nigeria among Phase II beneficiary countries.


He said the CTF Trust Fund Committee allocated $250m to finance its investment plan for renewable and clean energy with low carbon growth.

Musa further said that out of the $250m, $200m was approved in the investment plan to finance the development of a 100MW grid-connected solar power plan.

According to the lawmaker, the 100MW is a renewable energy sector in Bauchi.

He said the grid-connected project included two other states in the North-East, based on feasibility study and Federal Government support for initiatives in the development of the North-East.

Musa, who did not mention the two states, however, expressed concerns that five years after the approval and subsequent release of the funds, the project had yet to commence.

According to him, CTF funding initiative in Nigeria is intended to help overcome the financing and market barriers for low-carbon investments.

He said it was also aimed at supporting the deployment and application of clean energy and energy efficiency solutions in various industries, homes and service centres.

“The CTF is one of the two multi-donor Trust Funds within the Climate Investment Funds (CIFs).

‘’It is meant to promote scaled-up financing for demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions saving, he said.’’

Towards this end on Wednesday, the House mandated its Committee on Environment and Habitat to liaise with the ministers of Environment and Finance on the status report of the disbursement of fund for the project.

It also urged that the report should include evidence of disbursement of the funds.

The motion was unanimously adopted by members when it was put to a voice vote by Speaker Yakubu Dogara.

The House, therefore, mandated its committee to report findings within three weeks for further legislative action. (NAN)