The signing of the Putcall option agreements (Pcoa) by Nbet Afrinergia and Ct Cosmos Solar Energy Designer. The assessment of the repurchase price to be carried out by accountants is generally a condition of the agreement. If the seller does not pay the amount he must pay to the buyer under the AAEs, this amount is usually deducted when calculating the share repurchase price. The ministry said the agreements were coordinated by NBET and that the federal government`s power purchase contracts with 14 solar electricity developers were concluded in the summer of 2016. In all cases, the exercise of the sale or appeal requires the host government to make a payment to the project company or its shareholders. Lenders indirectly benefit from these agreements through direct agreements and their set of security measures. The Appeal Option Agreement (PCOA) proposed by the Nigerian government under Azura IPP in 2015 was the first of its kind. For the lenders and investors of this project, this was a new ground for project financing, and many reflections and analyses followed before finally being adopted. Moving forward quickly two years and the PCOA is now considered in a large number of projects in Africa. By 2020, the PCOA could be an integral part of any host government`s system if it is to attract international financial investment. Nigeria`s Ministry of Power has signed two Put/Call option agreements with local solar developers Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited. The two companies plan to build two photovoltaic installations with a total capacity of 120 MW.
In Nigeria, PPIs generally negotiate and contract put and call (PCOA) with the Federal Ministry of Finance after the execution of an AAE. The PCOA agreement directly transfers the risk of payment from the nigerian public company Bulk Electricity Trading Plc (NBET) directly to the ministry. The Put Call Option Agreement (PCOA) is a guarantee mechanism recently adopted by the Nigerian government. Babatunde Fashola, Nigeria`s Minister of Energy and Housing, has signed two put/call option agreements (PCOA) with Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited. The agreements cover two major photovoltaic projects that the two Nigerian developers want to build in the country. Afrinegia Nigeria Limited intends to build a 50 MW solar facility, while the CT Cosmos project would have a capacity of 70 MW. The department did not provide further details on the projects. The project implementation agreements consist of a first 20-year aaming contract (AAE) with the possibility of extending its duration by five years. After 25 years of concession Build Own Operate Transfer («BOOT»), the project and assets are donated to GoG.
Other proposed implementation sub-contracts include the outsourcing of engineering, procurement and construction («EPC»), the legend of procurement, operation and maintenance («O-M»), and a set of project security measures. Originally conceived as an emergency PPI, this project is now a long-term project. The project is at an advanced stage after Parliament won Parliament`s approval in October 2016 for the PPA and the PCOA.