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FG moves to resolve Aba IPP crisis, mediates between Geometric Power and Enugu Electric

By News Express on 31/12/2015

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The Nigerian Electricity Regulatory Commission (NERC) has said the Federal Government is resolving the prolonged issues between operators of the 141megawatts Aba power plant and other parties to enable it take off soon.

The station, built in Abia State, was the first independent power plant (IPP) in Nigeria, the operators, Geometric Power Ltd said. The gas-fired plant, which has a 27km gas pipeline and a distribution utility within a ring-fenced distribution network, is meant to provide embedded power towards reviving industries in the Aba hub.

The government granted a 20-year lease (concession) to Geometric Power Aba Limited to generate, transmit and distribute electricity in the Aba and Ariaria business districts of the Enugu Electricity Distribution Company (Disco) network.

The plant, which was completed in 2014, had been enmeshed in disputes and a law suit resulting in its non-takeoff. Former president, Goodluck Jonathan, who had visited the plant in March after he commissioned the 504mw Alaoji National Integrated Power Plant (NIPP) near Aba, assured of resolving the issue, which did not happen till he left.

Responding to enquiries on the resolution process recently, the former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, said before he left office recently: “We had a meeting with the Office of the Vice President in which both parties were present, that is Enugu Disco and Aba Power. I was directed to draw a settlement framework for the issue. That was the period (September). We did that and have completed it.”

Amadi noted that the plan, which has been submitted to the government, is to ensure a fair resolution of hanging issues. “I think it is for them to schedule another time for the parties to meet. The framework will be reviewed and approved as an out-of-court settlement. It provides a sure deal that allows a win-win for Aba power to operate and enable more power supply to eastern Nigeria, while it guarantees Enugu Disco’s network investment,” he said.

At a recent press briefing, the Permanent Secretary (Power), Engr. Louis Edozien, had said government was working on ensuring that there is a fair resolution between the parties so that there could be more efficient power supply for residents and industries in Aba.

•Text courtesy of Daily Trust. Photo shows VP Yemi Osinbajo, whose office is about to resolve the crisis. 

Source News Express

Posted 31/12/2015 7:37:25 PM





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