allAfrica.com: Nigeria: AFC to Upgrade Guinea Bissau's Electricity (Page 1 of 1)

Nigeria-led Africa Finance Corporation (AFC) and the Government of Guinea Bissau have agreed to a multi-million dollar upgrade of the electricity and water facility of the country to be powered by AFC's subsidiary, Africa Infrastructure and its Chinese equity and technical partners, the Western Metal Product Company.

This investment will lead to a rapid deployment of emergency power using heavy fuel power generation, and will involve the rehabilitation and management of transmission and distribution. The massive investment will help Guinea Bissau absorb the shock of losing seven percent of its estimated revenue in 2008 following the suspension of donor-funded budget support.

The power and water project comprises the first phase of long term investment in the country in a rescue bid to transform all sectors of its economy towards reviving and expanding the industrial sector to create more jobs. Guinea-Bissau thus becomes the latest African country to join the Africa Finance Corporation (AFC) initiated by the Central Bank of Nigeria to fund and deliver Africa's infrastructure needs through a unique private sector model.

"This is an important milestone for the Government and people of Guinea-Bissau, and for the AFC," said Mr. Austine O. Ometoruwa, President and Chief Executive Officer of the corporation, adding that "It is significant because by joining the AFC, Guinea-Bissau ensures itself the support and services of an organization that is committed to bolstering its economy and accelerating its infrastructural and industrial development." Speaking at the signing ceremony, Guinea-Bissau's Minister of Finance Issuf Sanha welcomed what he described as "an opportunity for Guinea-Bissau to be a member of an organization that is serious about reducing poverty in Africa." He noted that the continued suspension, by some international development partners, of donor-funded budgetsupport-representing about 7 percent of Guinea-Bissau's GDP-had hindered efforts to reduce poverty. "Where some of our international development partners appear to have abandoned us, the AFC has stepped in with purpose. We welcome their investment in Guinea-Bissau's future." Foreign Affairs Minister Maria da Conceicao Cabral also had praised for the AFC/Guinea-Bissau partnership.

"This strong support from the Africa Finance Corporation will certainly strengthen our efforts to attract investment and contribute to growth. Ultimately, it is the kind of catalyst we need for real poverty reduction to take place, and is definitely a win-win initiative." In turning to the AFC, Guinea-Bissau avails itself of thecorporation's innovative model for eliminating poverty in Africa. The corporation is launching a private sector-driven initiative to accelerate Guinea Bissau's economic development and help the country reduce poverty.Through its project development subsidiary-Africa Infrastructure-and with its Chinese equity and technical partners, WEMPCO, the AFC is launching a power generation initiative in Bissau. The initiative is anchored on an AFC-sponsored flagship electricity/Independent Water PowerProduction (IWPP) project. This investment will lead to a rapid deployment of emergency power using heavy fuel power generation, and will involve the rehabilitation and management of transmission and distribution. The AFC will help improve Guinea Bissau's investment climate and attract investors to its strategic sectors-notably infrastructure and agribusiness. There is strong potential for investment in the country's strategic cashew nut sector. Here, AFC initiative will help build a certain value added, and bolster employment. It will also provide needed support in strengthening onshore processing in the country's fisheries industry.

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