The federal government has assured that despite the challenges in the power sector, it would not relent until it resolves issues in the sector and make it attractive to investors.
The Director General, Bureau of public Enterprises (BPE), Alex A. Okoh, gave the assurance at the handing over of the Aba ring-fenced area to Geometric Power Wednesday.
The BPE DG was confident that the transaction would be a money spinner for the federal government.
But more importantly, I am pleased to announce 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.
Okoh said: “Distinguished ladies and gentlemen, please recall that this protracted transaction and the related issues have 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.
“In order to achieve this, 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.
“Following the approval of the transaction by the National Council on Privatisation, 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 said.
He commended the collaborative efforts of Geometric Power and Interstate Electric Limited in addressing the outstanding issues and bringing the transaction to a successful conclusion.
