Prof Barth Nnaji
Chineme Okafor
Geometric Power Limited, owners of the Aba Integrated Power Project (IPP) has asked the federal government to respect the extant lease agreement subsisting between both parties in the ring-fenced Aba distribution network.
Geometric’s request for respect of such lease terms follows controversy over the sanctity of a prior agreement reached on April 28, 2005 between the federal government, former National Electric Power Authority (NEPA) and Aba Power Limited, owned by Geometric for the distribution of power to the ring-fenced network that has residential and commercial consumers.
The government had prior to the commencement of its privatisation of successor companies of the Power Holding Company of Nigeria (PHCN), signed a 20-year lease agreement with the Aba Power Limited, granting it Aba and Ariaria business units within the PHCN Enugu distribution company to generate and supply electricity within the island network.
The licence for the island-mode distribution network was given to Aba Power Limited by the Nigerian Electricity Regulatory Commission (NERC) following a Memorandum of Understanding (MoU) between the government and Geometric.
However, the decision of the Bureau of Public Enterprises (BPE) to privatise the entire Enugu distribution network despite the existence of the 20-year lease agreement and its attendant implications has been condemned by the former Minister of Power and chairman of Geometric, Prof. Barth Nnaji.
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