President Goodluck Jonathan has been called upon to ensure that he resolves the Geometric/Aba Power issue with Interstate Electric before leaving office on May 29, 2015. Energy analysts say Jonathan should not leave the Geometric/Aba Power-Interstate issue for the incoming government of Buhari, since the problem is apparently a creation of crony capitalism and vested interest under the outgoing administration.
It will be recalled that the week preceding the presidential election, President Jonathan visited the Aba Power plant and marveled at the huge investment made by Geometric Power. He said the problem was “man-made” and promised to resolve all the pending issues that have prevented Geometric Power/Aba Power Limited from turning on their plant that would have enabled the mysiad of businesses and 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 (EEDC) to resolve this issue”, Jonathan said, after an inspection of the $500 million project.
President Jonathan admitted that “the Aba Power Project is well planned and will change the face of Aba in terms of power supply, especially as the city is highly industralised, with so many small and medium enterprises (SMEs) that need stable power supply to grow better, and create more jobs for our people”.
“We expected Jonathan to have moved into action swiftly, the very next day, and called all the parties concerned to resolve the pending issues. However, it’s not too late for the outgoing president to do the right thing before he leaves office”, said one energy analyst.
Bath Nnaji, chairman, Geometric Power/Aba Power Limited, had told President Jonathan that “the BPE double-sold Aba metropolis (which includes Aba and Ariaria Electricity Business Districts) to our company and to Interstate Electric, as part of the sale of Enugu DISCO.
“This is in spite of the very fact that the agreement we have with the Federal Government clearly states that whenever there is privatisation, our company has first right to purchase the facility in Aba, hence our heavy investment in this project”.
Nnaji accused “powerful economic and political saboteurs within the system” of having denied President Jonathan’s administration “the golden opportunity of using the Aba metropolis electricity ring-fence as a shining example of your power reform agenda”.
Despite several reports affirming that Aba Business unit of Enugu DISCO belonged to Geometric/Aba Power Limited, the firm grip of “vested interests” on the machinery of the outgoing administration frustrated the project. According to Nnaji, about eight committees, including committees of the NCP, NERC, and Ministry of Power, amongst others, have investigated the matter and come up with the same recommendation.
“There is no more need for another committee; all that it requires is decision and firm action that will ensure the full implementation of the recommendation to sell Aba metropolis to Geometric/Aba Power Limited and rescue our company and the people of Aba from the shackles of deliberate man-made mischief”, Nnaji said.
The $500 million Geometric/Aba power plant has capacity to produce and distribute about 141 megawatts (MW) 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 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 kilometers to the power plant at Osisioma.
It would be recalled that on May 11, 2004, the Federal Government, the now defunct National Electric Power Authority (NEPA) and Geometric Power Limited (GPL) entered into and executed a Memorandum of Understanding (MOU) under which GPL was granted the exclusive right to construct a 3 x 35 MW 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, NEPA 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 the agreement, NEPA 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.
FRANK UZUEGBUNAM
