THE GEOMETRIC/ENUGU DISCO IMPASSE

Allowing Aba Power Plant to lie idle is costly.There is need for an urgent rethink

On March 24, President Goodluck Jonathan flew to Aba, the commercial nerve-centre of Southeastern Nigeria, to inspect the facilities at the Aba Power Plant, an independent power project constructed by Geometric Power Systems Ltd. The 141 megawatts plant is expected to provide uninterrupted power supply, brighten households and breathe life into the withering industrial and economic activities of the city and its environs.

“We predict that the economy of Aba metropolis, which is the boundary of Umuahia and Aba to Imo River, will see a complete blossoming of industries – small, medium and large scale industries,” said Professor Barth Nnaji, chairman and promoter of Geometric Power, at the occasion, raising the hope of several business owners about the prospect of resolving the power challenge.

Considering that a lot of small and medium scale enterprises in the city often called the ‘Taiwan of Africa’ were unable to operate because of epileptic power supply, Nnaji’s intervention had for long been a sort of elixir. The hope was that as soon as the company comes alive, the economy of the area would be transformed with industries working at optimum capacity while more employment opportunities will be created.

Unfortunately, it would seem that Aba and its environs will continue to live in darkness because Geometric Power is not likely to switch on the light soon even though the plant is virtually ready for inauguration. This is because of a dispute between Geometric and the Bureau of Private Enterprise (BPE). The company had been at loggerheads with BPE over the status of Aba business district, which ought to be carved out as an island for Geometric, but later sold by BPE to Interstate Electric as part of Enugu

WE URGE THE JONATHAN ADMINISTRATION TO QUICKLY INTERVENE BY CORRECTING WHATEVER THE “MAN-MADE ERROR” IS IN THE INTEREST OF THE PEOPLE OF ABA AND ENVIRONS

Electricity Distribution Company during the recent privatisation exercise. This is despite the fact that Geometric Power secured a 20-year concession from the federal government in 2005 to supply power exclusively to the Aba industrial city and the neighbourhood.

In the course of President Jonathan’s visit last month, Professor Nnaji, himself a former Minister of Power in the early years of the current administration and chairman of Geometric Power, took time to explain the issues at stake. Following that explanation, the president described the situation as “a man-made error that has to be fixed”. But less than a month to the end of his administration, the presidential intervention is still being expected. The Vice-President, Namadi Sambo and chairman of the National Council on Privatisation, had earlier assured that the issues would be resolved. Indeed, Geometric said that all the various committees set up to examine the papers agreed that the federal government should abide by the agreement it entered freely by returning Aba and Ariaria Electricity Business Districts to Geometric.

As at the time of going to press, the plant is still being stalled. This is not only raising social tension in the area but coming at a great cost to the company. The Aba Power Plant is worth some $500 million in investments, sourced entirely from the local private sector. The cost is mounting in its present state of unimaginable idleness. “It costs our company $3.5 million in bank interest charges alone plus more than N30 million for insurance coverage,” said Nnaji. “There are other operational expenses every single month to carry a project that is not yielding any revenue due to the deliberate, hostile and crippling action of Enugu Disco and the BPE over 15 months ago.”

It is indeed curious that the federal government is lukewarm towards a project which not only promises to act as catalyst for big business but one that it professes to be its cornerstone. We urge the Jonathan administration to quickly intervene by correcting whatever the “man-made error” is in the interest of the people of Aba and environs.