Otti moves to float independent power project for Abia

ALEX Otti, Governor of Abia State, has resolved to float an independent Power Project in order to ensure stable power supply and distribution to all parts of the State, boosting socio-economic growth and people’s social lives.

Consequently, Governor Otti has engaged the services of faculty of consultants to carry out extensive, due diligence on the planned acquisition of Interstate Electrics Limited’s 60% stake in Enugu Electricity Distribution Company (EEDC) assets in the Umuahia zone who have presented their initial report.

BusinessDay reports that due diligence report was presented at the Governor’s office by four reputable organisations that handled different aspects of the assignment, including Deloitte and Touche (Lead Consultant and Financial-Tax-Commercial Adviser); Ken Ahia SAN & Associates (Legal Adviser); Kosem Nigeria Limited (Technical Adviser), and Heritage Capital Markets Limited (Accounting Experts) in presence of Afriexim Bank (Financier).

Speaking on the power project, Governor Otti said, “We want to land a fair asset value for the Government and the seller. I have maintained that it would be a different discussion if we don’t have the money; however, we can always source the funds, underscoring the reason for Afrexim Bank’s attendance.

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“The Government does not plan to hold 60%; we can lead the way with the acquisition, de-risk, and subsequently divest into other potentially interested private sector players. We felt that is a better way to go than inviting some private sectors.

“If you go back to check, you will find virtually all the DISCOs are struggling; the reason for the struggle is a discussion for another day. Some of the DISCOs were overvalued, while others were very expectant. Post-acquisition, they discovered that maybe the major problem was not what they thought it would be.

“One of the key issues is generation, another issue is transmission; you can’t distribute power that is not available to you. And it is actually the driving force here for us because we can see excess capacity from Aba,” he explained.

The Abia Chief Executive recalled his visit, with the European Union (EU) delegation, led by the EU Cooperation Chief, Massimo De Luca, to Geometric Power, Aba, on Thursday, stating that instead of wheeling excess power to the national grid, it is better to wheel it into Umuahia to solve domestic problems.

“For me, it is a transaction that we must do, and the question is how do we safely do it, leaving everybody happy? That is why we are doing all these. I have an idea of a number that Interstate Electrics is looking at, but you can’t just hit a hand on your head and quote a random asset value; it needs to be derived, and that’s why all of you are in the room, and that’s why I devoted this time just to listen,” Otti stated.