Indigenous electricity generation firm, Geometric Power has taken over electricity supply to the commercial city of Aba, but ring-fenced from Enugu Electricity Distribution Company (EEDC).
The Bureau of Public Enterprises (BPE) in a statement on Thursday announced that it has formally handed over the Aba ring-fenced area of the Enugu Electricity Distribution Company (EEDC) to Geometric Power.
Director-General of the BPE, Mr. Alex A. Okoh declared that the asset was being handed over to a tenacious investor that has made a firm commitment to transform the Aba Ring Fence Area into a model electricity supply franchise, providing quality, stable and affordable electricity to consumers and thus, unlocking the significant economic benefits of the commercial and industrial hub of the regional economy.
Speaking at the formal hand over ceremony in Abuja Okoh noted that the transaction would generate some revenue for the Federal Government.
The Director-General said that the event represented another notable success under President Muhammadu Buhari Administration’s Sectoral and Enterprise Reform programme; and recalled that the protracted transaction and related issues had posed a serious challenge for successive administrations since 2005.
“However, the resolution of these issues has been a top priority for this Administration under the leadership of President Muhammadu Buhari”, he added.
According to him, to resolve the issue, the Bureau initiated a series of engagements with all the stakeholders, which led to:
* the signing of the Term sheet between Geometric Power and Interstate Electric Limited (which is the Core Investor in Enugu Electricity Distribution Company (EEDC)); and
*an agreement between the Federal Government, Geometric Power and Interstate Electric Limited on the principles that would guide the resolution of the licensing overlap between EEDC and Geometric Power, as well as the sale and transfer of the Asset by EEDC to Geometric Power.
He said that following the approval of the transaction by the National Council on Privatisation (NCP), the Bureau (on behalf of the Federal Government) and Interstate Electric Limited executed an Asset Transfer Agreement, through which they transferred their respective interests in the Aba Ring Fence Area to Geometric Power.
Okoh further noted the several challenges facing the electricity sector in the country but maintained that the Federal Government had repeatedly demonstrated ample commitment to resolve the issues and to create an enabling environment that would attract and incentivise private sector capital into the sector.
He thanked President Muhammadu Buhari for his resolve to bequeath a functional power sector to Nigerians and the Vice President and Chairman of the National Council on Privatisation (NCP), Professor Yemi Osinbajo for his wisdom and guidance on the transaction.
While congratulating Geometric Power for its cooperation in making the required compromises which made the hand over possible, Okoh said it was a thing of great joy that the final handover of the Ring-Fenced Area had finally taken place.
Also speaking, founder and Chairman of Geometric Power, Professor Barth Nnaji said the company was committed to effective power distribution and supply in its franchise area; and that it would be an important project to Nigeria as a whole.
Nnaji, a former Minister of Power, thanked President Buhari, Vice-President Osinbajo and other critical stakeholders for the peaceful resolution of the protracted matter.
In his remarks, a Director of EEDC/Interstate Company Limited (owners of EEDC), Mr. Kester Enwereonu said the company was happy to handover a network that had been tremendously improved upon.
He said EEDC would go into a healthy competition with Geometric Power for the benefit of power consumers in the franchise area.
