Virtuitis_DARES

pending

Virtuitis Solaris Limited (“Virtuitis” or the “Company”), established in 2018, has contributed to the development of clean energy through the execution of mini-grid projects in Nigeria. In October 2024, Virtuitis was among 22 developers that entered into agreements with the Rural Electrification Agency (REA) for the implementation of distributed renewable energy projects across nine states in Nigeria. To date, Virtuitis has successfully completed seven mini-grid projects as part of the Nigeria Electrification Project (NEP), resulting in 5,517 connections. The proposed IFC investment consists of a revolving loan of up to USD16.0m to Virtuitis to part finance the company’s 4-year capital expenditure plan to construct and operate 97 mini-grids solar sites with an aim to connect 142,343 off-grid consumers by 2027. The mini-grids sites will comprise i) installed photovoltaic (PV) solar power systems with capacities ranging from 50 - 800kWp capacity; ii) lithium battery storage with capacities ranging from 200 - 1,645Wh capacity; iii) diesel generator sets with capacities ranging from 60 - 500kVA capacity; and iv) local low voltage power distribution network without transformers, (the “Project”). The loan shall be secured entirely through an assignment of amounts due to Virtuitis under the World Bank (WB) financed Nigeria Distributed Access through Renewable Energy Scale-up (“DARES”) project (disclosed on the WB Website - P179687). The DARES project builds on the achievements of the WB financed NEP, which has supported the establishment of 125 mini-grids and the sale of over a million Solar Home Systems, through which more than 5.5 million Nigerians have gained access to electricity. Proceeds from IFC financing will only be used for the construction and operation of the 97 mini grids. Land for the mini-grids is acquired in accordance with the procedures set out in the World Bank-approved Resettlement Policy Framework (RPF) developed under the DARES Platform, which serves as a core E&S instrument for projects implemented through this program. The mini-grids will be constructed in villages, on small plots of land ranging from 0.15 hectares up to 10 hectares, acquired through community lease agreements in eight Nigerian states (Plateau, Ondo, Delta, Kogi, Ekiti, Sokoto, Zamfara and Kebbi). Construction at each site is expected to span four months and both construction and operation and maintenance (O&M) will be managed by Virtuitis.