Sunergy Management Plans Follow Up Visit to Nigeria for Affordable Housing and Solar Power Projects
Press Release Source: Sunergy Inc. On Monday September 08, 2014
SCOTTSDALE, AZ--(Marketwired - Sep 8, 2014) - Sunergy, Inc. ("Sunergy" or "the Company") (OTC Pink: SNEY) (PINKSHEETS: SNEY) announced today that management plans a follow up visit to Nigeria to continue with its Affordable Housing and Utility Scale Solar Power Projects. On Tuesday, September 2, 2014 The Company's affordable building partner responded to an official invitation from Nigeria's Minister of Housing with an opening bid to win a contract for all, or a portion of 10,000 affordable homes under a pilot project funded primarily by The World Bank to the tune of $250,000,000.
The president of our building partner commented on our bid and the following link as follows: "I just want to show you the article about the bid we just put into the Nigerian government for green homes. The request for green is what I have been working on with the government officials for the last 5 years and the bid looked like it came right out of one of my brochures. With this start and the great connections at the top levels provided by Sunergy, I think we will be there for a long time with a need of 17 million homes." The link to further information on the Nigerian 10,000 home pilot project is as follows: (for full detailed link see http://www.voiceofnigeria.org/nigeria2/item/2346-nigeria-begins-first-phase-of-affordable-). Excerpts from this link follow below.
"The Nigerian Government on Thursday officially began the first phase of its affordable housing scheme of 10,000 units of houses." The project which is funded by the newly established Nigeria Mortgage Refinance Company (NMRC), will enable Nigerians to buy houses at affordable rate. It would be implemented in the 14 pilot states listed by the company -- Abia, Anambra, Bauchi, Bayelsa, Delta, Edo, Enugu, Ekiti, Gombe, Kaduna, Kano, Kwara, Ogun, Ondo and FCT.
The Minister of Finance, Dr Ngozi Okonjo-Iweala, while speaking at the event in Abuja, said with the flag-off, low income earners would begin to have the opportunity to own their houses under a flexible long term mortgage plan. Based on the scheme, a unit of two bedroom apartment might be sold for between N4.5m and N7.5m depending on the location and cost of land, while that of a three bedroom would be sold from N8m. To be eligible, applicants must show proof of a regular income, tax compliance, specified combined household income and others.
"Applicants who meet the eligibility requirements would be handed over to the Primary Mortgage Institutions (PMI) for final processing, the PMI will originate the mortgages to be backed or refinanced by the Nigerian Mortgage Refinance Company."
The minister said with the Mortgage Refinance Company, Nigerians would now be able to afford a home under a long term mortgage plan. She said the processing time for application for the mass housing project had been reduced from between six and 18 months to just six weeks.
"We want Nigerians to own their houses at affordable cost. The NMRC mission is to provide long term funding for the housing sector. Since the ability of banks in providing mortgages is limited by the fact that 80 per cent of deposits does not ensure great level of sustainability in providing resources for the housing sector, the NMRC is here to provide a conducive financing mechanism that can allow people pay mortgage for up to 10 to 15 years. So instead of people not being able to own houses as they would have to pay up in 12 or 18 months, we are changing that now so that for 10 to 15 years, people can be able to pay for their own houses."
Reduce risks The NMRC was established to provide mortgage lending institutions with access to long-term finance at affordable interest rate, thereby, enabling mortgages to be issued by the institutions to Nigerians at longer tenures and affordable rates. It has a take-off grant of N50 billion. N40 billion ($250 million) loan from the World Bank, has been given under a 40-year tenure with a moratorium of 10 years and would attract zero percent interest. However, a commitment fee of 0.7 per cent will be paid on the facility. In addition to the take-off grant from the World Bank, other investors that are raising the initial equity of another N10 billion include the Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority (NSIA), commercial banks, mortgage finance institutions and the International Finance Corporation, among others.
The N40 billion and N10 billion put together by the World Bank and other investors would be supported by Tier 2 capital raised by NMRC through the issuance of a N50 billion bond in the capital market by July this year to increase its total capital base to N100 billion and enhance the ability of the institution to buy and secure the mortgages created by primary mortgage institutions. Already, the Nigeria Sovereign Investment Authority (NSIA) has approved an equity commitment of N1.6 billion through its Nigeria Infrastructure Fund (NIF) in the company. This is however subject to applicable regulatory clearance by the SEC.
Reduce Housing Deficit
Also speaking at the event, the Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi said the roll out was a significant step in the Federal Government's bid to reduce housing deficit which is currently placed at 17 million. She said the ministry was implementing other complementary projects to help provide affordable houses for Nigerians. The Minister said the land title system in the country was being reviewed to meet the needs and expectations of Nigerians. She explained that various committees have been set up to fast track the implementation of the 10,000 pilot scheme of the NMRC, update a land data base and conduct a housing census in order to keep track of government's effort to reduce the nation's housing deficit.
In addition to this tender, as previously announced in a press release on September 2, 2014, the Company has a Joint Venture with a substantial Independent Power Provider (IPP) in the US, that is well connected to the Obama Power Africa $7 Billion initiative to provide utility scale solar power to Liberia. On Wednesday, last week, an understanding was reached with this same IPP to undertake, as co-developer, another utility scale solar project in Nigeria. We have officially been invited to submit proposals for utility scale solar power installation(s) in Nigeria by the Chairman of the president of Nigeria's task force on power. Both Liberia and Nigeria are qualified nations in the Obama Power Africa Fund. These solar projects will be financed, owned and operated for 25 years by a consortium of financial partners, including our company, our solar power partner, the Obama Power Africa Fund and others and will cause zero dilution to Sunergy shareholders.
Garrett Hale, Sunergy President and CEO said: "We are pleased that our efforts in the affordable housing and solar power businesses are now poised to produce substantial future revenues for our shareholders. The nature of both housing and utility scale solar power projects are long term projects which will require substantial financial support which is being arranged without requiring any dilution of our shareholders. Our negotiators have worked hard to position our company to be in the position to profit from these transactions and have de-risked these substantial undertakings for our shareholders. This is just the beginning for us in these industries. Our building partner is working on over 60,000 additional homes in 4 other African countries where we will be compensated, and our solar power partner has additional targets where we would carry our partnership to the tune of at least 1 gigawatt, or in monetary terms, in excess of $1Billion of cost with the attendant long term power purchase agreements as the acceptable form of payback. Management plans this visit from about September 15th through the 30th."
More information on our various projects and financial condition will be forthcoming.
About Sunergy: Sunergy Inc. (OTC Pink: SNEY) (PINKSHEETS: SNEY), a Nevada corporation, is a junior mining company headquartered in Scottsdale, Arizona. The Company has made a transition from an exploration only company to a company currently focused on production and cash flow. We now have four dredges operating, 2 in Sierra Leone and 2 in Liberia We have also acquired a wash plant and loader capable of handling between 50 to 350 tons per hour of diamond and gold bearing gravels. In addition to our core mining activities, the Company has used its considerable contacts earned over the past 4 years to develop non-mining partnerships and agency agreements with major international businesses representing Airport Security, Affordable Housing projects and Solar energy projects in the six West Africa Countries of Ghana, Sierra Leone, Liberia, Nigeria, The Gambia and Senegal. For more information, please visit www.sunergygold.com
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