Stakeholders task Fashola on resolving Geometric-Interstate imbroglio

Stakeholders in the power sector have asked Babatunde Fashola, new power minister, to quickly resolve the dispute between Geometric/Aba Power Limited and Interstate Electrics/Enugu Electricity Distribution Company (EEDC) to enable the people in Aba ring-fenced territory to enjoy steady power supply from the multi-million dollar world-class power generation and distribution infrastructure already in place.

A source, in a chat with BusinessDay, says the power infrastructure already put in place by Geometric Power in Aba is a low hanging fruit, which if the minister harnesses will not only give the people of the commercial city of Aba and environs steady power supply, but will also impact on the rest of the country.

“Getting Geometric Power/Aba Power Limited to come on stream can rejuvenate the region and by extension the country. Aba, which is supposed to be an engine to help drive the economy, can now take off. In addition, all the clamour for pro-Biafra will take back seat as youths will be employed,” says our source.

The Bureau of Public Enterprises (BPE) had compelled Interstate Electrics and EEDC to handover the contentious Aba ring-fenced territory to Gemetric/Aba Power Limited (APL) on September 10, 2015, but Interstate Electrics and EEDC scuttled the event through last minute court injunction.

It would be recalled that the week preceding the presidential election, former President Goodluck Jonathan visited the Aba Power plant and was marvelled at the huge investment made by Geometric Power. He said the problem was “man-made” and promised to resolve all the pending issues that had prevented Geometric Power/Aba Power Limited from turning on their plant that would have enabled residents of Aba, the commercial hub of Abia State, enjoy constant power supply.

“We need to resolve this matter. This kind of investment cannot be a waste. We must call the parties involved in the matter; government, Geometric and the Enugu Electricity Distribution Company to resolve this issue,” Jonathan said, after inspection of the $500 million project.

It would also be recalled that on May 11, 2004, the Federal Government, the now defunct Power Holding Company of Nigeria (PHCN) and Geometric Power entered into and executed a memorandum of understanding (MoU) under which Geometric was granted the exclusive right to construct a 3 x 35mw 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, PHCN 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 agreement, PHCN 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.

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 Power Limited. EDC and TCN were substituted for NEPA as parties to the lease agreement of 2005 and assumed their respective obligations.

The $500 million Geometric/Aba power plant has capacity to produce and distribute about 141mw 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.