Asaba Power Plant Has Received A Mega Lift, Read Details Here

The developer-company of the Asaba Independent Power Plant, Bastanchury Power Solutions Nigeria Limited, has received an impressive financial boost.

This is in the form of a re-issuance of an N18.1 billion Bank Guarantee from Sterling Bank, just approved by Governor Sheriff Oborevwori as requested by the Delta State House of Assembly

The approval followed the reading of the governor’s letter during Tuesday’s plenary session by the Speaker, Rt. Hon. Dennis Guwor.

According to the governor, the re-issuance had become necessary to facilitate Access Bank’s partnership with the Delta State aimed at improving efficiency and financial performance.

Governor Oborevwori noted that the existing IGR account is currently tied to a Bank Guarantee exceeding N18 billion.

That had earlier been issued by Sterling Bank on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA).

Explaining the the two key objectives of the PPA, the governor said:

i. The first is the issuance of an N18.1 billion Bank Guarantee to cover compensation payment and the buy-out amount in the agreement – renewable annually

ii. The second involves the issuance of a monthly Irrevocable Standing Payment Order of N430.7 million, with a 2.5% annual increment in capacity charges. This payment covers capacity, operations, and maintenance costs for the power infrastructure, all to be drawn from the composite IGR account domiciled with Access Bank.”

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“Upon the issuance of the new guarantee, the one from Sterling Bank will be cancelled to ensure a seamless transition,” he added. Oborevwori’s message to lawmakers

The governor, having presented his request, the Leader of the House, Hon. Emeka Nwaobi, moved a motion for its approval, which was seconded by the Deputy Speaker, Hon. Arthur Akpowowo. The motion was subsequently adopted unanimously through a voice vote.