Geometric Power, banks, others sign N15bn new agreement on power

Geometric Power's Independent Power Project, IPP, Aba.

Geometric Power’s Independent Power Project, IPP, Aba.

09 July 2015, Lagos – Aba Integrated Power Project (Aba IPP) has signed a N15 billion new Transaction Implementation Agreement with its leading sponsors, Geometric Power project companies, pursuant to which Afrigem Integrated Utilities Limited becomes a core investor in the integrated electricity power project.

According to the parties, the new Transaction Implementation Agreement is expected to help fast-track the commissioning of the plant to takeoff in November and start the generation and distribution of quality electricity power to the residents of Aba metropolis.

It will be recalled that Geometric Power led the sponsors of Aba IPP while the creditors include Diamond Bank Plc, Asset Management Corporation of Nigeria (AMCON) and Stanbic IBTC Bank Plc. Afrigem, a West African focused development and investment company with a 720MW pipeline of energy solutions project in the region.

Geometric Power is to inject N15 billion into the project, making Geometric Power one of the most capitalised private sector driven power companies in the sub-region. In its 3-year growth plan, the Sponsors and Afrigem expect to increase the plant capacity from 141MW to 341MW by 2018.

Professor Bart Nnaji, Chairman of Geometric Power Limited led the signing on behalf of the project sponsors while Mallam Samaila Zubairu, Vice Chairman of Afrigem, led the signing on behalf of Afrigem Integrated Utilities Limited at the ceremony attended by energy consultants, top bank executives and representatives of the various professional parties.

“I believe that the immense benefits that this new implementation agreement will bring will make Nigeria a better place especially as it will help boost economic production when the power plant starts generating power soon.” We commend Geometric Power, StanbicIBTC and others that have made this to work today. We also commend AMCON for helping to bear the burden when it was very heavy for us; but the coming of Afrigem into this integrated project is a good one for all of us and for Nigeria”.

Professor Nnaji, on his part, expressed delight at the new development. He noted that Aba IPP remains the first green-field integrated power project developed by a private indigenous consortium which, upon commissioning, will deliver quality reliable 24-hour electricity supply to industries, commercial enterprises, residents of Aba metropolis and bring huge economic revival in the country.

“I would like to applaud everyone who helped to see this come to pass today. We are very happy that this project is on and with this we will bring power to the people of Aba and we hope to see the economic revival that this provision will bring to Nigeria,” he said.
*Ediri Ejoh, with Agency report

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