. Okoh charges new owner to transform franchise
The Bureau of Public Enterprises (BPE) has formally handed over the Aba ring-fenced area of the Enugu Electricity Distribution Company (EEDC) to Geometric Power.
The Director-General BPE, Alex Okoh, said the asset was 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.
The new owners are therefore expected to provide quality, stable and affordable electricity to consumers, thus unlocking the significant economic benefits of the commercial and industrial hub of the regional economy.
At the formal hand over, which took place at the BPE headquarters on Wednesday, in Abuja, Okoh said in a statement that the transaction will generate some revenue for the Federal Government.
The Director-General noted 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.
The new owners are expected to provide quality, stable and affordable electricity to consumers, thus unlocking the significant economic benefits of the commercial and industrial hub of the regional economy.
Transfer of assets
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 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 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 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.
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 finally took place.
Also speaking, Chairman of Geometric Power, Prof. Barth Nnaji, expressed the company’s commitment to effective power distribution and supply in its franchise area, which he said is an important project to Nigeria as a whole.
In his remarks, a Director of EEDC/Interstate Company, Kester Enwereonu, said the company was happy to handover a network that had been tremendously improved upon.
He added that EEDC would go into a healthy competition with Geometric Power for the benefit of power consumers in the franchise area.
The parties thanked the Federal Government and other critical stakeholders for the peaceful resolution asset transfer.