Collection Account Arrangements

EMRC, working with Herbert Smith for the PPP Unit, are designing the electricity sector-wide “collection account” which is to be established by the Government in Sierra Leone to help securitise payments to private sector financed IPPs.

This collection account will be managed by an “Independent Agent” appointed by GoSL who will sweep all receivables (from both pre-paid and credit customers) of the state owned utility EDSA into a centralised bank account, and then manage disbursements from that account according to a laid down set of priorities, the “payment waterfall.”

EMRC are drawing on their experience of similar arrangements put in place in Nigeria to securitise the NEMSF I facility provided to the sector by the Central Bank of Nigeria.