NBET, Azura-Edo PPA First Beneficiary Of World Bank’s PRG – Okonjo-Iweala | Independent Newspapers Limited
Newsletter subscribe

Business, Power

NBET, Azura-Edo PPA First Beneficiary Of World Bank’s PRG – Okonjo-Iweala

Posted: May 26, 2015 at 12:04 am   /   by   /   comments (0)

By Obas Esiedesa, Abuja


The Power Purchase Agreement (PPA) signed by the Nigerian Bulk Electricity Trader (NBET) with Azura Power for the Azura-Edo IPP would be the first to benefit from the World Bank Partial Risk Guarantee structure, Minister of Finance, Ngozi Okonjo-Iweala has disclosed.

Okonjo-Iweala said during NBET board/annual general meeting in Abuja, that the project has attracted investments from nine countries with 14 banks participating.

She explained that within the short three years of its existence, the Bulk Trader has executed PPA with all privatized existing PHCN generation companies and vesting contracts with distribution companies.

She noted that the Federal Government “through various sources has capitalized the Bulk Trader with $800m which has put it in a strong place to play intervention and stabilization through the Transitional Electricity Market (TEM)”.

Speaking to newsmen shortly after the meeting, NBET Managing Director, Rumundaka Wonodi said the company has also concluded negotiations on PPAs with the 10 thermal generation companies owned by the Niger Delta Power Holding Company NDPHC under the National Integrated Power Projects (NIPP).

Wonodi said a power purchase agreements for the multi-layered Zuma Energy coal power project as well as four solar power projects were also at the final stage.

He explained that the PPA for Zuma and the solar projects were waiting for the final approval of the Nigerian Electricity Regulatory Commission (NERC).

NBET was set-up by the Federal Government as a middle company between the generation companies and distribution companies to ensure that GENCOs are paid for power generated.

With the agreements the 10 NIPP plants would now be able to sell electricity generated by them to the Bulk Trader for onward resale to electricity distribution companies in the country.

According to him, “this is the second annual general meeting of the company and the primary business was the adoption of the accounts of the company and reappointment of the external auditors of the company, Messrs. PriceWaterCoopers and their opinion on the account of the company was an unqualified opinion which means that they had all the information they required and found the account true in line with the standards practices.

“Primarily, 2013 was not a very active year and so most of the entries you find in the account were all about establishing the company and there was no trading in the market but within that period, you could see evidences of the injection of capitalisation through the Eurobond and other shareholder loans from the Bureau of Public Enterprises.