• Thursday, December 07, 2023
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Geregu pays N8.7bn to Italian firm to overhaul 435 MW power plant

FEDA buys 5% of Geregu Power shares at undisclosed price

Geregu Power Plc has announced it made advance payments of N8.783bn to Italian firm, Ansaldo Energia, for the overhaul of its gas turbine as of the end of June 2023.

This was disclosed in the unaudited interim statement of financial position of the Genco for the period ending June 30, 2023, which was filed with the Nigerian Exchange Limited.

As of December 2022, advance payment to the Italian firm was N4.616bn.

In April 2022, Ansaldo Energia signed a three-year contract with Geregu valued at €32m to conduct a major overhaul of the 435 MW Power power plant in Ajaokuta, Kogi State, Nigeria.

The three-year contract included the supply of spare parts which would be entirely manufactured by Ansaldo Energia in Italy, and the maintenance services, which would be performed by its subsidiary Ansaldo Energia Nigeria, based in Lagos. Activities would start in early 2023.

According to Geregu’s financials, the major overhaul of the gas turbine was scheduled for Q3, 2023.

Based on reports, this contract marked Ansaldo Energia’s first foray into the electricity sector of Nigeria. For Geregu Power, this represents the second major overhaul since the acquisition of the plant by Amperion Power Distribution.