27 August 2013, Lagos – In a bid to address the growing concern that some of the core investors in the on-going privatisation in the power sector would not be able to access funds to expand the assets after acquisition, West Power & Gas Limited, WPG, said it had raised close to $500 million in equity and debt financing to fund significant rehabilitation and transformation work required to improve distribution network infrastructure and operations of Eko Electricity Distribution Company.
WPG recently completed payment for the acquisition of a 60 per cent stake in the electricity distribution company, two days ahead of the deadline issued by the Bureau of Public Enterprises, BPE.
The final payment of $101.25million followed the payment of the initial 25 per cent deposit of $33.75 million earlier this year for the Eko Disco valued at $135million.
The Chairman of WPG, Mr. Charles Momoh, said in a recent statement that $250 million had been allocated to rehabilitation while the company had allocated a further $48 million towards a power purchase agreement with the Nigerian Bulk Electricity Trading, NBET, Plc.
“Today marks a tremendous milestone; and a major step forward towards the completion of the most significant privatisation of government assets in Nigeria’s history. The success of the power transformation programme is critical to the future development of Nigeria. WPG, along with the other preferred bidders, fully appreciate the magnitude of the task before us and are honoured to have been selected. As a sector we must work together to ensure we achieve the desired results,” Momoh said.
“As well as securing the finance to complete the acquisition, WPG has brought together a world class team of local and international industry experts to implement the rehabilitation and expansion programme. We look forward to the completion of the acquisition process and all matters to be resolved so we can begin the task of transformation of the Power sector in the Country,” he added.
West Power & Gas Limited is a Nigerian Power Investment Holding Company established to invest in Nigeria’s fast-evolving power sector.
The company recently completed the acquisition of the Eko Distribution Company and has also unveiled plans to explore other opportunities for investment in the power sector as a whole including generation.
– This Day