Abuja: Finally, Aba Electricity Distribution Area has been handed over to Geometric Power Limited, making it the 12th Electricity Distribution Company in Nigeria
The company which has the capacity to generate and distribute 24 hours electricity is expected to stimulate industrial and economic activities in the area.
The hand-over ceremony was done by and at the Bureau of Public Enterprises (BPE) in Abuja and was witnessed by officials of the Enugu Electricity Distribution Company, the Geometric team and representatives of the Federal government.
The asset was handed over by the National Council on Privatisation (NCP) through the Bureau for Public Enterprises (BPE) at a brief event in Abuja.
This latest development has been seen as a great achievement for Nigeria’s power sector and would ensure a more efficient electricity supply to Aba city and its environment.
Experts said this development is seen as a great achievement for Nigeria’s power sector as the $500 million Geometric/Aba power plant has the capacity to produce and distribute about 141 megawatts (MW) of electricity in its first phase, with new distribution lines, four new sub-stations and three rehabilitated sub-stations.
Each plant is to produce 47 MW of power, supported by a 60 MVA per transformer. The power plant is to be powered by gas and so the company has built a gas plant at Shell company flow station at Owaza in Ukwa West Local Government Area of Abia State and laid a pipeline spanning 27 kilometres to the power plant at Osisioma.
It will be recalled that on May 11, 2004, the Federal Government, the now-defunct National Electric Power Authority (NEPA) and Geometric Power Limited (GPL) entered into and executed a Memorandum of Understanding (MOU) under which GPL was granted the exclusive right to construct a 3 x 35 MW open cycle gas turbine power plant and designated sub-stations in Aba, Abia State, which would generate electric power for distribution by Aba Power Limited (APL) to residential and commercial customers and to industrial clusters in a ring-fenced island in Aba.
The government, NEPA and APL executed a lease agreement on April 28, 2005, for the distribution of power to the ring-fenced residential and commercial consumers in Aba. By the terms of the agreement, NEPA assigned its right to distribute electric power in the ring-fenced area of Owerri-nta, Osisisoma, Ogbor Hill, Factory road and Port Harcourt road in Aba and also leased its distribution facilities within the contract area to Aba Power Limited.
A supplementary agreement was made on August 31, 2006, between the Federal Government, represented by the minister of power and steel, Transmission Company of Nigeria (TCN) and Enugu Distribution Company (EDC) and Geometric/Aba Power Limited. EDC and TCN were substituted for NEPA as parties to the lease agreement of 2005 and assumed their respective obligations.
Recall that Geometric Power Limited had been involved in a protracted legal tussle with Enugu Electricity Distribution Company (EEDC), the successor company to Power Holding Company of Nigeria (PHCN), Enugu Disco over the ABA Electricity Distribution Area.
The present management of the Bureau of Public Enterprises (BPE) under the administration of President Muhammadu Buhari deserves commendation for having the courage and political will to do the right thing after many years of unwarranted legal battles.
