BPE Hands over Aba Ring Fence Area to Geometric Power

Ndubuisi Francis

The federal government has finally resolved the protracted mandate tussle between Geometric Power and Interstate Electric Limited, the core investor in Enugu Electricity Distribution Company (EEDC) over the Aba Ring Fence Area.

The resolution was finally sealed as the Bureau of Public Enterprises (BPE), yesterday handed over the power asset to Geometric Power.

BPE Director General, Mr. Alex Okoh, who conducted the handing over, noted that the ceremony signposted another notable success under the Buhari administration’s sectoral and enterprise reform programme.

Okoh recalled that the protracted transaction and the related issues had posed a serious challenge for successive administrations since 2005.

He stated however, that the resolution of the issues had been a top priority for the administration.

In order to achieve this, Okoh said the BPE 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 on one hand, 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.

According to him, following the approval of the transaction by the National Council on Privatisation (NCP), the BPE (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.

He stated that the transaction would generate some revenue for the federal government.

Okoh added that of more importance was that, “we are handing over this asset to a very 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, thereby unlocking the significant economic benefits of this commercial and industrial hub of the regional economy. “

He stressed that while there may be a number of challenges facing the electricity sector, the federal government had repeatedly demonstrated ample commitment to resolve these issues and to create an enabling environment that would attract and incentivise private sector capital into the sector.

“I wish to thank His Excellency, President Muhammadu Buhari for his resolve to bequeath a functional power sector to Nigerians. I would also like to thank His Excellency, the Vice President for his wisdom and guidance on this transaction. I also wish to acknowledge the collaborative efforts of Geometric Power and Interstate Electric Limited in addressing the outstanding issues and bringing this transaction to a successful conclusion.

“Lastly, I would like to congratulate Geometric Power on the acquisition of the Aba Ring Fence Area and wish you the very best in your future endeavours,” Okoh said.