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Yar’Adua lays foundation of N33bn Aba IPP

By Chudey Pride, Aba
Business Day Newspaper
November 1, 2007

President Umaru Musa Yar’adua yesterday laid the foundation of the $250m Aba Independent Power Project (Aba IPP) with a call for more investors in the country’s power sector.

The president said the ground-breaking of the 140 mega watts Aba IPP, owned by Geometric Power Limited is the first major investment by Nigerians in the diaspora in the power sector which is beginning to see the light of day with the building of core power stations in the country.

He said the present administration places emphasis on the power sector because it is critical to the economic and overall development of the country, and noted that "it is my expectation that other investors will emulate Nnaji and take advantage of the reforms in the power sector. In this regard, we welcome all genuine investors in the power sector."

The president, who was represented by the minister of state for energy and gas, Emmanuel Odusina, noted that no effort would be spared in lifting the comatose power sector.

Abia State Governor Theodore Orji observed that it is a mark of national honour that reputable international financiers have the confidence to invest in the Aba IPP.

celebrating an idea whose time had come, today we are celebrating a commendable resolve to succeed in the midst of adversity. We remain eternally grateful."

Chairman of Geometric Power Limited, Barth Nnaji, said theAba Independent Power

Project will guarantee constant availability of electric power as well as good quality power devoid of fluctuations and hiccups.

Nnaji said the Aba IPP is the first indigenous IPP in Nigeria and also in Africa, and that Geometric Power Limited is determined to play a leading role in the emerging private sector, post privatization energy market in Nigeria and expand to other countries in sub-Saharan Africa.

Geometric Power Limited established two Sprcial Purpose Vehicles (SPV) namely Geometric Power Aba Limited (GPAL) and Aba Power Limited for the purpose of generating and distributing electric power to industrial, commercial and residential customers within a ring-fenced zone. It obtained government approvals to construct the power station that will have 140 mega watts installed capacity in its first phase and is expected to commence distribution of reliable, quality power by December 2008.

Aba Power Limited has signed an agreement with the Federal Government to lease and improve the Aba distribution network for a period of 15 years. Both project companies received their operating licences from the Nigerian electricity regulatory commission (NERC) for the Aba IPP Project on 7th December, 2006.