InfraCredit and Agence Française de Développement (AFD) have signed a Technical Assistance Financing Agreement for public-private partnership (PPP) projects in Nigeria.

Under the agreement, AFD will provide project preparation and development technical assistance support for InfraCredit’s prospective pipeline of PPP projects in selected state governments. This agreement will enable the states, which require support to improve their bankability and attract private sector participation, to reach financial close and access long-term local currency financing from the domestic debt capital markets. Furthermore, under the agreement, the eligible states will receive technical and legal assistance, as well as support with feasibility studies for PPP projects. 

InfraCredit’s Annuity PPP Guarantee was developed to facilitate the sustainable financing of new infrastructure projects alongside subnational governments in Nigeria. It involves technical assistance and catalytic capital to accelerate state-supported and private sector-led development of bankable, revenue-generating infrastructure projects under design, build, finance, operate and maintain (DBFOM) arrangements by the private partner, supported by a transitional annuity revenue assurance by the state government to be replenished from the future cashflows generated from the project. Such eligible projects could benefit from InfraCredit’s guarantee which can mobilize up to 20-year local currency financing from the domestic debt capital markets.