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Investors shop for N987.46bn to boost power supply


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Nigeria

IMAGE: The Olorunsogo II Power Plant »

11.Mar.2014

 

Investors in the power sector need at least N987.46bn over the next five years to adequately supply electricity across the country, OKECHUKWU NNODIM writes

A total of $6.34bn (N987.46bn) will be required for the next five years by power investors to significantly improve electricity supply in the country, according to the Information Memorandum for the distribution, generation and the transmission segments of the power industry in the country.

Since November last year when the investors acquired the successor generation and distribution companies of the defunct Power Holding Company of Nigeria, electricity consumers have been complaining the power situation is not getting any better.

A document on the financial outlay, which was obtained on Sunday, indicated that the investors, currently facing daunting financial challenges, would need N987.46bn to replace obsolete equipment and provide other facilities to deliver uninterrupted electricity to consumers.

It showed that a total of N278.79bn ($1.79bn) would be needed by the 11 electricity distribution firms for the period, while the seven power generation companies would have to invest N708.66bn ($4.55bn) in their respective businesses.

An analysis of the sum needed by the firms in the next five years, as contained in the information memorandum, showed that the firms would need the amount to function optimally.

It was also revealed that the Transmission Company of Nigeria alone would require N376.92bn ($2.42bn) to evacuate generated electricity to the Discos effectively.

The 11 power distribution firms are in Abuja, Kano, Jos, Yola, Enugu, Port Harcourt, Benin, Ibadan, Ikeja, Eko and Kaduna.

The total funding requirement needed by all the Discos as of December 31, 2013 was put at N5.57bn ($357.66m).

Our correspondent learnt that the major investment opportunities in the firms included the replacement of obsolete equipment and heavy machineries and the upgrade of facilities such as meters, poles, transformers, worn out cables and dilapidated electrical and mechanical tools.

The power generation firms are Transcorp Ughelli, Sapele, Afam, Egbin, Geregu, Shiroro, and Kainji/Jebba.

According to the document, the Abuja Electricity Distribution Company, owned and managed by Kann Consortium, has a distribution capacity and peak load demand of 835MW and 1,320MW, respectively.

The funding requirement for the firm as of December 31, 2013 stood at $36.6m, while the total amount needed to adequately fund its operations in the next five years was estimated at $183m.

States covered by the Abuja Disco include Kogi, Niger and Nassarawa, as well as the Federal Capital Territory.

The Kano Electricity Distribution Company is owned and managed by Sahelian Power SPV Limited and distributes power to Kano, Katsina and Jigawa states.

The firm has power distribution capability and peak load demand of 365MW and 596MW, respectively. Its funding requirement as of December 31, 2013 was $30.38m.

A total of $151.89m, according to the document, is needed by the Disco within the next five years to distribute electricity efficiently.

The Jos Electricity Distribution Company is managed by Aura Energy Limited. The firm, according to the document, distributes power to Plateau, Benue, Bauchi and Gombe states.

It has a distribution capability and peak load demand of 378MW and 507MW, respectively.

A total of $22.76m was the funding requirement needed by the Disco as of December 31, 2013; while for the next five years, it stated that the firm would need $133.78m.

For the Yola Electricity Distribution Company, $65.67m will be needed within the next five years to ensure seamless operation.

The Disco, according to the document, stands out as the one that requires the lowest capital inflow for the period under review. The firm, which is owned and managed by Integrated Energy Distribution and Marketing Limited, distributes power to Adamawa, Taraba, Borno and Yobe states.

Its distribution capability and peak load demand were put at 138MW and 176MW, respectively. The Disco’s funding requirement as of the end of last year was $13.13m.

The Enugu Electricity Distribution Company is managed and owned by Interstate Electric Company Limited and distributes power to Abia, Anambra, Ebonyi, Enugu and Imo states.

The total funding requirement for the firm as of December 31, 2013 was $27.23m, while the amount needed within the next five years was put at $136.15m.

The firm has a distribution capacity and peak load demand of 612MW and 1,017MW, respectively.

The Port Harcourt Electricity Distribution Company has a distribution capability and peak load demand of 486MW and 773MW, respectively.

The firm, which is owned and managed by 4Power Consortium, will need $127.57m in the next five years to perform optimally, while its funding requirement as of December 31, 2013 was put at $25.51m.

The Port Harcourt Disco distributes electricity to Akwa Ibom, Bayelsa, Cross River and Rivers states.

The Benin Electricity Distribution Company supplies power to Delta, Edo, Ekiti and Ondo states. The firm is owned and managed by Vigeo Power Consortium and its funding requirement as of December 31, 2013 was $42.31m.

The amount needed for the next five years was estimated at $121.57m and its distribution capability and peak load demand were given as 392MW and 1000MW, respectively.

For the Ibadan Electricity Distribution Company, a total of $219.33m will be needed over the next five years to deliver power to consumers satisfactorily.

The firm, owned and managed by Integrated Energy Distribution and Marketing Company Limited, has distribution capability and peak load demand of 878MW and 1,193MW, respectively and its funding requirement as of December 31, 2013 was $43.87m, the document stated.

The Ikeja Electricity Distribution Company, managed by NEDC/KEPCO, distributes power to districts of Ikeja, Shomolu, Alimosho, Ojodu, Ikorodu, Oshodi and Abule-Egba areas of Lagos State.

Its distribution capability and peak load demand were given as 854MW and 1,335MW, respectively. A total of $58.74m was required by the Disco as of December 2013, while $293.69m would be needed in the next five years, it stated.

The Ikeja Disco stands out as the firm that requires the highest capital inflow for the five-year period, according to the document.

The Eko Electricity Distribution Company, owned and managed by West Power and Gas Limited, distributes electricity to the commercial and financial hub of Lagos State and has distribution capability and peak load demand of 796MW and 1,105MW, respectively.

The funding requirement for the firm over the next five years has been put at $225.85m, while the amount needed for its funding put at as of December 31, 2013 was $45.17m.

Article Credit: BusinessNews

Updated 5 Years ago
 

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Tags:     Transmission Company of Nigeria     Ikeja Electricity Distribution Company     Abuja Electricity Distribution Company     The Disco     The Enugu Electricity Distribution Company     Yola Electricity Distribution Company     Port Harcourt Disco     Benin Electricity Distribution Company

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