Abia looks towards Afrieximbank to solve power problem in Aba

Abia State is seeking collaboration with Afrieximbank to inject funds into Geometric to enable it exit from the imbroglio that has existed between it and the Enugu Electricity Distribution Company (EEDC).
Boosting industrial activities in Aba, the commercial hub of Abia State, is one of the priorities of the present administration in the state.
And getting Geometric Power Limited, an independent power plant situated at Osisioma area of Aba, to function, would solve the energy problem that has stifled industrial activities in the commercial city.
Consequently, the Abia State government recently led a team of private sector investment partners, including Bart Nnaji, CEO, Geometric Power Limited, and Pascal Dozie, chairman, Diamond Bank plc, to a day meeting with the African Export-Import Bank (Afrieximbank).
The meeting, which was at the invitation of Benedict Okey Oramah, president, Afreximbank, discussed partnership opportunities in the development of the Enyimba Free Trade Zone project and completion of Geometric Power project, among others.
Governor Okezie Ikpeazu, who is due to make a second visit to the headquarters of Afrieximbank in Cairo, Egypt, for further discussions on the partnership, said the imbroglio between the two companies, which was caused by the Bureau of Public Enterprise (BPE), was the bottleneck that had stalled the provision of constant power supply in Aba.
The governor in an exclusive interview with BusinessDay in Umuahia, the state capital, stated that Afrieximbank was ready to support Geometric and the state, saying, “In fact, I am due for a second trip to Afrieximbank, which will culminate probably in the signing of memorandum of understanding (MoU) in two other levels, apart from the support to Geometric.”
The Geometric Power project, which is 95 percent completed, was identified by the Ikpeazu-led government as a key driver for Aba and Abia economic growth.
The governor emphasised that it was the vision of the state government to re-ignite the industrial potentials of Aba, leveraging its competitive advantage in trade and commerce with centralised location that made access to all South-East and South-South cities easy.
The Federal Government in April 1, 2016, resolved the long-drawn dispute between Geometric/Aba Power Limited and Interstate Electrics, owner of Enugu Electricity Distribution Company (EEDC) over the Aba ring-fence.
The decision was a return to the original agreement, which gave Geometric/Aba Power, the first right of refusal for the Aba-ring-fence, should the then PHCN be privatised.
This development brought hope to investors, who were keen on taking advantage of the anticipated improved power supply in Aba, to expand their businesses in the South-East/South-South corridors.
However, that anticipation is fading, as the $530 million power project has remained dormant, a situation that some industry sources attributed to the economic situation in the country.
BusinessDay checks show that Geometric is expected to refund EEDC about $11 billion, which they claimed they paid BPE for Aba ring-fence as well as re-negotiate contract agreement with its contractors on the remaining work on the project, which would also run into billions of dollar.

GODFREY OFURUM, UMUAHIA