Faq Pages

1. We would like to clarify Section 4 of the RFP regarding technical capacity. The definition of mini grid does not include the word “solar”. Do you literally mean any system generating between 10kW-10GW and connected to two or more customers, regardless of technology qualifies?

In Section III – Initial Selection Criteria and Requirements, the Applicant must use solar and solar hybrid mini grids, with generation capacity between 0kW and 1MW, and a network that distributes power to two or more customers, to show its experience in:

Developing mini grids (criterion 4.1 and rated criterion 1)
Operating mini grids (criterion 4.2 and rated criterion 2)

2. Are state-owned enterprises eligible?

State-owned enterprises are eligible as per clause 4.2 of the Instructions to Applicants (ITA).
Further, as per clause 4.9 of the ITA, Applicants that are state-owned enterprises or institutions in the Employer’s Country may be eligible to be initially selected, compete and be awarded a Contract(s) only if they can establish, in a manner acceptable to the Bank, that they (i) are legally and financially autonomous (ii) operate under commercial law, and (iii) are not under supervision of the Employer.

3. On page 33 of the attached, requirement, 3.3 states that applicants must have twice raised $5 million in debt for infrastructure projects. The requirement seems rather narrowly tailored, so we wanted to ask how strict it will be on the specifics. Do the raises have to be debt, or can they be equity? Does it really have to be $5M twice, or could it be, say, $4M thrice?

The Applications will be evaluated based on criterion 3.3.
The Applicant must have raised debt successfully for at least two (2) projects in infrastructure since January 2014, for an amount of at least USD5 million or its Nigeria Naira equivalent for each project.

1. Tenders & Performance based-grand exclusivity. Can a firm submit an application to the Minimum Tender Subsidy, and another application, in any form (similar or different) to the Performance Based Grant, with different partners, alone or in consortium? (Sub-topic 3.1)

Yes, a firm can submit an application for the Minimum Subsidy Tender and also submit another for the Performance Based Grant since these are different programs with different eligibility, qualification and technical capability requirements under the NEP.

2. Performance based-grant exclusivity Can a firm still submit qualify to the Performance Based Grant, through multiple applications, either as a single entity, a consortium or as subcontractor? (Sub-topic 3.2)

Yes, a firm can qualify for the Performance Based Grant program through multiple applications, on its own, as part of a consortium and as a subcontractor

3. Performance based grant Incorporation Component: Performance based-grant Reference: https://nep.rea.gov.ng/solar-hybrid-minigrid “Is: a) a single legal entity, duly registered as a legal entity in Nigeria; b) a consortium that is incorporated as a legal entity in Nigeria; or c) an unincorporated consortium whose members are jointly and severally liable.” Does this mean no unincorporated single entity can initiate a Performance Based Grant program? “Please do NOT submit a registration form if you or a member of your consortium do not meet the criteria above. You will be required to submit documentation proving eligibility in the next stage of the application process.” At which exact stage will it be required? Similarly, as in Sub-topic 4.1: What is the actual definition of “incorporation”: - A Certificate of Incorporation? - A business permit? - A tax clearance certificate? (Sub-topic 4.2)

Yes, an unincorporated single entity is not eligible to submit an application to the Performance Based Grant program because it lacks corporate status to transact business
The documentation proving eligibility is not required in order to submit the registration form on the REA webpage to access the Odyssey platform. However, the documentation is required for the Applicant to submit the application through Odyssey for qualification into the Performance Based Grant program
Definition of incorporation is for the Proposer to register with the Corporate Affairs Commission and obtain the certificate of incorporation in Nigeria. In addition, the Proposer shall also register with the appropriate tax office (i.e Federal Inland Revenue Service) and obtain a Tax Identification Number (TIN) through which deductibles taxes shall be remitted to the Federal Government of Nigeria. A tax clearance certificate is, however, not required at this stage

4. “members of an unincorporated joint venture” Reference: http://rea.gov.ng/mini-grid-pbg/ What is the definition of an “unincorporated consortium whose members are jointly and severally liable”? What are the implications? Shall members of an incorporated joint venture be incorporated in Nigeria?

The language on the REA registration website has been amended to “Is: a) a single legal entity, duly registered as a legal entity in Nigeria; b) a consortium that is incorporated as a legal entity in Nigeria whose members are jointly and severally liable; or c) an unincorporated consortium.
The joint and several liabilities is a confirmation that each and all the members of the consortium shall be responsible for the execution of the grant agreement, if awarded. This implies that if anything goes wrong with the contract implementation, every and all the members shall be held liable.

5. Performance Based Grant initial timeline Reference: Slides n°4 of the PBG session, 15 April 2019, Sheraton Abuja According to slides shown during the presentation, Performance Based Grant’s pre qualification and Site-specific technical application shall last approximately 4 months. Can you please confirm that the Performance Based Grant prequalification can occur anytime until funds have not been disbursed by the employer? In case one applicant or consortium will go through multiple stages of site-specific technical applications, should the applicant or consortium pre-qualify multiple times or only once? (Sub-topic 5.1)

Applications for the Performance Based Grant program are accepted on a rolling basis until funds are exhausted.
Each Applicant need only qualify once regardless of the number of site-specific technical applications it will submit.

1. What is the Objective of the Standalone Solar Home Systems (SHS) Component?

The objective of the Solar Home Systems component is to help millions of unserved and underserved Nigerian households and Micro and Small Medium Enterprises (MSMEs) access better energy services at an affordable cost, via stand-alone solar systems through the private sector companies and in turn scaling up the SHS market rapidly.

2. What are the prequalification requirements for the SHS Output Based Fund (OBF)?

To be qualified for the grant under the Output Based Fund, the company must have the required capacity to deliver quality verified products and services. We look for evidence of ability to track customers, pre and post-sale support to customers, financial status and resources available to invest amongst other requirements.

3. How can a company register and apply for the OBF?

All interested parties must first register through the REA NEP website, where basic company data is required. The applicant will then receive login credentials to access the OBF application form via our online data management platform – Odyssey Energy Solutions. Once access is granted, the applicant is required to complete the questions, upload the required documents and submit the application.

4. Can an international company be considered for the grant?

Yes, they will need to present evidence of incorporation from their respective country and provide government-issued evidence of tax payments and/or clearance.

5. Can more than one company apply together for the grant?

Yes, two companies can apply together as a Joint Venture (JV). The JV agreement must detail who is the lead applicant and must provide articles of incorporation or documents of registration for both companies. For an incorporated JV, an agreement stating that the members are jointly and severally liable, and for an unincorporated JV, JV agreement stating that the parties are jointly and severally liable is required.

6. What type of business model is eligible under the OBF?

The programme is business model neutral. All business models are eligible.

7. What is the minimum size or capacity of a solar home system that can be admitted into the program?

The minimum capacity and service of systems that can be admitted into the program is a PV capacity of 6wp and provides a minimum service of 3 lamps and phone charging capabilities.

8. How are nominated Solar Home Systems evaluated?

There is a Quality Verification Framework that each nominated Solar Home System model must pass before being admitted into the program.

9. Can I add a new Solar Home System model after signing the grant agreement?

Yes, but you will need to send an email to the SHS Component Lead requesting the system(s) be added to the list of approved products. The email must include a request letter and the required certification documents stated in the Quality Verification Framework based on the size and capacity of the nominated system(s).

10. Can new market entrants with no experience in the Solar Home System (SHS) market be eligible?

The programme was designed to support companies who have existing SHS businesses in the market and encourage them to scale quickly. Applicants are required to demonstrate a minimum level of sales in or outside of Nigeria over a 12month period. If a new market entrant does not meet this requirement, the company can partner with an experienced company to leverage their knowledge. Or wait till they have the required experience to apply.

11. How many times can a company apply for the OBF, if unsuccessful?

Once a company has applied and their application is unsuccessful, they can apply again within 3 months of receipt of the notice that their application was unsuccessful. Should they be rejected again, we require the company to wait for 6 months before reapplying. This timeframe allows the company to rectify their shortcomings and propose a stronger application upon resubmission.

12. Will already deployed systems be considered for the grant?

Unfortunately, no. Only systems sold or installed after the Grant Agreement has been signed will be considered for payment.

13. Is there a cap on the grant amount available per company?

There is no cap per company, however, the range will be reviewed periodically and may change based on market conditions.

14. When are payments made?

Payments are made only after the verification of each sale has been conducted by an Independent Verification Agent. This can only take place once the grant agreement is executed by both parties and the company has sold or installed systems and submitted a request for payment on Odyssey.

15. What is an OBF claim?

A claim is a compilation of systems sold or installed by a grantee that includes information on each customer who purchased a system. This information is used by the Independent Verification Agency to verify the sale of the system before payments can be made.

16. How often are companies expected to submit claims?

Within 2 months of the effective date of the grant agreement, grantees are required to submit claims for a minimum of 200 systems sold or installed. Thereafter, grantees are required to submit at least once, a minimum claim of 150 systems over a 3month period.

17. Will the grant be disbursed in Naira or US Dollar?

All disbursements are made in naira at the CBN prevailing rate on the disbursement day.

18. Can the grant be used to reduce the retail price of the system to the end-user?

As a market development programme, grant funds are not allowed to be used as a subsidy to the end-consumer. Rather the grants should be used by the company to expand their operations to enable them serve more customers quickly. The Independent Verification Agent (IVA) will gather data on pricing and any company found to be using the grant as a subsidy to the end-users will be dismissed from the programme.

19. Is it a priority to deploy either in rural or urban areas under the OBF?

The REA’s mandate is to serve the rural population while the Nigerian Electrification Project has a mandate to increase energy access in both rural and urban areas. As such, the focus of OBF is to provide access to off-grid electricity to rural populations but the markets will also include peri-urban areas.

20. How long does it take for a company to receive payment?

From submission of claims to payment, the process may take up to 3 months. The duration of the payment process is dependent on several factors including, but not limited to, the responsiveness of the grantee, Independent Verification Agent availability and capacity, and government financial systems processing.

How many institutions are to be electrified under the EEP Phase II?

There are 9 institutions in total; 7 federal universities and 2 university teaching hospitals

What was the selection criterion for the EEP phase II institutions?

Apart from ensuring that the phase II institutions cut across the 6 Geopolitical Zones in Nigeria, land availability where the projects will be deployed was also considered. Also, towards ensuring greater impact, the population of the institutions was a selection criterion

How many Phases does the EEP have?

Currently, there are 3 EEP phases.

Will there be subsequent phases for the EEP?

Yes, there will be subsequent phases for the EEP. However, this is dependent on availability of funding to implement subsequent phases.

How can my university/institution be part of the EEP?

The Nigerian Government has approved 37 Federal Universities and 7 Teaching Hospitals to benefit from the EEP. See if your university/institution is one of the beneficiary institutions

Are all the EEP Phases funded by the Federal Government of Nigeria?

Yes, the Federal Government of Nigeria funds all the current EEP phases. However, phases II and III are funded through a credit facility (loan) from the World Bank and African Development Bank respectively

What Technology will be deployed to the EEP Phase II Institutions?

Solar Hybrid Technology solutions will be deployed to the phase II beneficiary institutions

How can Developers apply to participate in the EEP Phase II and what is the procurement process?

Interested Developers will have to participate in a Competitive Bidding Process. The commencement of this process will be advertised in 2 National Dailies, the United Nations Development Program website as well as the REA website

Will only female students of the beneficiary institutions be selected for the Science, Technology, Engineering and Mathematics (STEM) Internship Program and why?

In line with the REA and World Bank’s objective to promote Gender Inclusiveness; in this case encouraging more women to participate and take up more active roles in the power sector, the STEM Internship Program is open to only female students. However, as part of the EEP components, a renewables Workshop/Training Center will be provided, which will be accessible to all students of the beneficiary institutions

Will any sustainable measures be put in place to ensure longevity of the EEP phase II projects after the execution stage?

Yes, there will be. As part of the phase II preliminary activities, a Sustainability Plan will be developed to ensure self-sufficiency of the projects, as well as guide the implementation process of the projects

What is the Energizing Education Programme (EEP)

The EEP is a Federal Government of Nigeria initiative, which is tasked with improving the quality of educational services at tertiary level through the provision of dedicated and independent power plants, which will provide reliable, affordable and sustainable power to 37 Federal and 7 affiliated teaching hospitals. In addition, EEP will provide street lighting for illumination and safety, as well as a world-class renewable energy-training centre at each of the EEP beneficiary institutions. The renewable energy training centres will give the students the opportunity to put their theoretical knowledge into practice.
Furthermore, the EEP is committed to empowering young women and fostering gender inclusion in the power sector. In line with this, selected female students across each university will be afforded the opportunity to receive comprehensive training during the construction phase of the project, under the EEP Science, Technology, Engineering and Mathematics (STEM) Female Internship Programme.
EEP is being implemented in phases. EEP Phase III is being funded by the African Development Bank (AfDB) and will cover 8 Federal universities, across Nigeria’s six geopolitical zones and will utilize a combination of solar and gas-powered systems.

Who are the beneficiaries?

The key targets for EEP Phase III are university students, academic and non-academic staff, and enterprises located within the university campus parameters.

Which specific universities are beneficiaries?

Modibbo Adama University of Technology, Adamawa; Federal University of Dutsin-Ma, Katsina; Federal University of Lafia, Nasarawa; Federal University of Lokoja, Kogi; Federal University of Technology Owerri, Imo; University of Port Harcourt, Rivers; Federal University of Uyo, Akwa Ibom; Federal University of Technology Akure, Ondo.

1. In terms of promoting shared prosperity, does REA have plans of forming cooperatives in the communities or must a developer create a cooperative in a community?

As part of REA’s community engagement activities, communities were encouraged to form themselves into a cooperative known as the Electricity Users Cooperative Society (EUCS). Developers are expected to meet with the members of the cooperative upon arrival to the community.

2. Is the management of lead and lithium batteries in your plan?

Yes, it is inbuilt in our plan

3. Who pays for the disposal of the batteries?

The issues related to recycling of batteries are built into the extended producer responsibility policy. It is also expected for the developers in their ESMP to provide how they intend to recycle/dispose waste

4. If there is grievance in the community concerning a project, does it mean the developer will have to terminate their project?

TA grievance will not necessarily lead to termination of the project if properly resolved. Hence, the need for a robust stakeholder/ community engagement along with a well-publicized grievance Redress Mechanism in order to avoid or mitigate occurrence. Developers should ensure that a grievance does not escalate to the point of affecting the project

5. What role does grievance redress mechanism?

The grievance redress mechanism works with the states and NGOs that help the communities understand what these developers do. Stakeholder engagements session in the community with the developer is pertinent for the receipt of a due diligence report. The report of the session must be in a local dialect of the community

6. What role does the National Environmental Standards and Regulations Enforcement Agency (NESREA) play in battery disposal?

Once there is a policy direction in place for battery management, NESREA will be responsible for the implementation of the Extended Producers Responsibility (EPR).

7. Can ESMP cost template from the Federal Ministry of Environment be shared with Developers?

No, the Federal Ministry of Environment (FMEnv) do not provide a cost template as this is dependent on the consultant hired by the Developer to conduct the Environmental and Social Management Plan (ESMP). The only document the FMEnv can provide is the content of what is required in the ESMP.

8. If there are issues with the ESMP & Environmental and Social Management System (ESMS), can developers reach out to REA when the need arises?

Yes, developers can channel all enquiries to the Solar Hybrid Mini Grid team or also schedule a call through the team who will then direct the questions to the NEP Environmental & Social team. The Environmental and Social specialists are always available to have a hand holding session or work through with developers as may be required

9. In the E&S, are developers supposed to specify each site by all the itemized requirements in the annexes and are they to approach the State or Federal Ministry of Environment?

Yes, developers are supposed to embed all their sites, so long they are in the same state using the same technology, screen their sites using the E&S screening checklist as category 2, which requires the development of ESMP. The ESMP must include the coordinates of all the sites with separate stakeholder/ community engagement.
The EIA Act is a Federal Act. Hence Developers are advised to approach the Federal Ministry of Environment who presides over Environmental Impact Assessment (EIA) and not State Ministry of Environment.

10. If there are some things not captured initially when carrying out the ESMP that later manifest when developing the site, what do developers do and is it possible to replace or take out sites whose agreements have already been signed?

The E&S team always stress the importance of using the E&S checklist to categorize sites. It is expected that developers will use experts to conduct all E&S studies, it is expected that possible future issues that might/may arise will/must be flagged from the onset enabling, a proper site categorization to avoid issues that might put the project at risk.

1. What does Institutional Capacity Building entail?

Institutional Capacity Building activities on NEP-AfDB focus on supporting project implementation and broad capacity building in the off-grid sector. This component will finance project implementation as well as help build a robust framework for rural electrification

2. How will NEP-AfDB go about achieving this?

The fourth component of the project will build a sustainable framework for rural electrification upscaling, support the implementation of the Project, and provide for broad capacity building among key stakeholders in the off-grid electricity sector

3. Who benefits from this Component’s efforts?

Federal Ministry of Power (FMP), REA, Nigerian Electrification Regulation Commission (NERC), Federal Ministry of Environment and other public institutions within and in conjunction with the energy sector and the NEP-AfDB PMU

Minimum Subsidy Tender