₦airaland Forum

Ngorbungor:
Visit this link, to clear your ignorance

www.sunnewsonline.com/geometric-power-finally-acquires-aba-ring-fence-after-9-years-dispute/%3famp

Or read along to 6-7 paragraph:

Home Business
Geometric Power finally acquires Aba Ring Fence after 9 years dispute
Pays $26 million acquisition fee
By David 3 months Ago

Geometric Power finally acquires Aba Ring Fence after 9 years dispute
From Uche Usim, Abuja

The management of Geometric Power has formally taken over the Aba ring-fenced area in Abia State from Integrated Electricity Limited, the core investor in Enugu Electricity Distribution Company (EEDC), ending a nine-year legal battle over the rightful owner of the project.

The company has also paid the mandatory $26 million acquisition fee to the federal government.

The trouble started when the Goodluck Jonathan administration privatised power assets and the Aba Ring Fence area was wrongly lumped into the EEDC and sold to Integrated Electricity as a single asset.

The development led to a series of legal bouts that eventually ended with the formal handover on Wednesday in Abuja, at the headquarters of the Bureau of Public Enterprises (BPE).

The $500 million Geometric/Aba power plant has the capacity to produce and distribute about 141 megawatts (MW) of electricity in its first phase, with new distribution lines, four new sub-stations and three rehabilitated sub-stations.

Each plant is to produce 47 MW of power, supported by a 60 MVA per transformer. The power plant is to be powered by gas and so the company has built a gas plant at Shell company flow station at Owaza in Ukwa West Local Government Area of Abia State and laid a pipeline spanning 27 kilometres to the power plant at Osisioma.

In his remarks at the handover ceremony, the Director-General of BPE, Mr Alex Okoh, described the development as soothing and commendable.

According to him, the National Council on Privatisation (NCP) worked hard to see that the tussle was resolved and that the right thing was done.

He added that the protracted transaction and the related issues have posed a serious challenge for successive administrations since 2005.

“The bureau initiated a series of engagements with various stakeholders, which led to one the signing of the agreement between Geometric Power and Integrated Electric Limited, the core investor.

“I am pleased to announce that we are handing over this asset to a tenacious, very, very tenacious investor who has made a firm commitment to transform the Aba Ring Fence area into a model electric supply franchise, providing quality, stable and appropriately priced electricity to consumers, thereby unlocking the significant economic benefits of this commercial and industrial hub of the regional and national economy,” Okoh explained.

In his remarks, the Chairman of Geometric Power and ex-Power Minister, Prof Barth Nnaji, expressed delight that the legal tussle has ended, adding that his company was ready to provide reliable electricity to Aba.

“The other government sold what was rightfully ours to the people who acquired EEDC. So, they simply bundled Aba as part of EEDC. It was done knowingly. That is why we went to court and we’re grateful this administration resolved the issues. We’ve paid the acquisition price of $26 million. “I used to be on the other side of the fence and what we said during that time was that anybody that’s acquiring a DisCo should have the financial capacity or technical capacity, and was that’s what he brought in.

“We actually have made the necessary investments required to not have any issues in terms of reliability of power supply. So, we have invested about eight times the amount of the acquisition already. We have built new substations. We built new power lines, over 140 kilometres of new lines, we built four brand new substations. We’ve built gas pipelines with seven kilometres to ensure that we have gas uninterrupted from Shell to us, etc. So, all these things we’ve done and the whole idea is to ensure that the network is what it is supposed to be,” he said.

Also speaking, Kester Enwereonu, Director at EEDC hailed Vice President, Prof Yemi Osinbajo, who heads the NCP for his efforts and interventions.

He also expressed delight that the Aba Ring Fence deal was able to attract foreign funding of $50 million.

“Geometric is getting from us what you’d be proud of that will help improve customer relationship,”

Obviously, it is scandalous to claim $500m for a 141MW project.


Home - THISDAYLIVE logo
GEOMETRIC: BEWARE OF THE IDES OF MARCH
editorMarch 30, 2022 12:00 Am
·
· Otoabasi Akpantah argues that Geometric Power costs are excessive

· Julius Caesar was killed by his hitherto praise singers and “supporters” including his bosom friend Marcus Junius Brutus. He was stabbed by 60 conspirators and killed at the base of the statue of Pompey the Great in the Roman Senate House in March 44 BC.

· On March 10, 2022, one of the national dailies published an article written by one Emeka Umegbala for, and on behalf of, himself and some members of a certain International Society for Civil Liberties and Rule of Law titled “Time to Collapse EEDC” – an acronym for Enugu Electricity Distribution Company (Enugu Disco).

· In the article, the writer disclosed that his group has kicked off sustained campaign for the purpose of collapsing the activities of EEDC for its takeover by Geometric Power, which by his account has spent over $500 million in building four new injection substations, over 140km of high voltage distribution lines, 141 megawatts power plant and 27km of gas pipeline. The article also disclosed that AfriExim bank granted further facility of $50 million to Geometric from which it used $26 million for the acquisition of EEDC’s Aba and Ariaria Business Districts while the balance $24 million will be used to improve the existing infrastructure and expansion of the Aba – Ariaria network.

· If the numbers reeled out here are correct, and I do not have any cause to doubt them since Prof Barth Nnaji (former Power Minister and Promoter of Geometric Power) himself and Geometric Power have in different fora and press statements given out the same numbers from which the writer must have derived his data.

· It is on the basis of the quoted figures that this red flag is being raised because indeed the numbers do not add up.

· Investing a whopping $550 million just to service two business districts that represent barely 10% of the entire EEDC network, valued at $230 million, does not make any business sense. Building 141 megawatt power plant to service two business districts with peak load of barely 40 megawatts is grossly over scoped, inefficient and a recipe for disaster. This is even more worrisome especially considering that the 1,020 megawatt Alaoji NIPP, located in the same precinct as the Geometric power plant, already has stranded 800 megawatts capacity that cannot be evacuated into the grid by TCN because of its poor infrastructure. In other words, 100 megawatts of Geometric power plant cannot be activated nor utilized despite the huge capital already expended.

· Using standard industry estimates, a 141-megawatt power plant, at $1 million/mw, should cost about $141 million; 27km of gas pipeline, at $1 million/km, should cost about $27 million; 140km of HV lines at $30,000/km should cost $4.2 million; while the four substations should cost no more than $4 million at the average cost of $1 million each bringing the total cost to $176.2 million.

Allowing additional costs to cater for consultancy and ancillary costs, a cost profile of $200 million for the entire project would have been quite adequate. Thus spending $500 million on a $200 million project does not indicate prudent assessment of costs and management of resources.


·

· The second and probably more pertinent issue is how will Geometric manage this highly geared financial exposure. Assuming that its promoters contributed 30% equity to the $500 million capital expenditure, and financed $350 million over a standard seven year period at about 10% interest per annum, the debt service will amount to $5.8 million per month or $69.7 million per year. These translate to about N2.4 billion per month or N28.9 billion per year assuming an exchange rate of N415 to a dollar. Interest alone amounts to $2.9 million or N1.2 billion per month. Expectedly, Geometric will need about N2.4 billion every month just to service its debt. There is no way Geometric will be able to net up to N1 billion a month after offsetting its Opex costs including the invoice of the gas supplier, payroll, operations and logistics. So how will Geometric service its facility and have return on its investment?


·

· Compare the above scenarios to EEDC in which the investors paid $126 million for the entire network including the Aba-Ariaria business districts from which it has gotten back $26 million from Geometric.

·

· From the foregoing, it is obvious that the authors of the said Nigeria Pilot article do not understand the intricacies of business costs and financing, otherwise they would not have recommended a highly geared entity with attendant risk of threat of business continuity to take over the business of a lesser geared and more prudent but perhaps less efficient entity; although Geometric’s operational efficiency is yet to be tested in the field.

· The situation indeed calls to question the prudence and management competency of the Geometric team. Spending $500 million for a $200 million project is, at the least, scandalous.

· Installing upfront a 141 megawatt power plant for a network that can only offtake less than a third of that capacity also questions Geometric’s understanding of the business they are going into; a 45 megawatt plant, scalable to 141 megawatts as load demand increases, would have been more prudent. It is akin to buying three aircraft of 120 passenger capacities to deploy on a route that has passenger volume of 100 passengers. You will have to either ground two of the aircraft indefinitely with attendant costs or use the three interchangeably, also with the attendant costs, when you could have deployed only one aircraft initially, and as passenger volume increases you deploy more aircraft.

· Ideally, the whole Geometric development could have been done with less than $100 million — $45 million for 45mw power plant, $27 million for the 27km gas pipeline and $8.2 million for the injection substations and 140km HV lines; and yet achieve the same cash flow results.

·
· An informed protagonist would have rather advised Geometric to court EEDC to off take the excess 100 megawatts, which is probably its only life line to remain at least on life support, as that will improve its cash flows while it seeks other ways of managing its humongous debt profile which may come crashing on it and inevitably consume it sooner than later.

· With the right collaboration and support from EEDC, both parties may strike a good symbiotic relationship that will benefit each other and ultimately the customers. There is a saying in Igbo land that it is the man who holds a mould of eba that goes seeking the man with a bowl of soup because the man with soup could eat his soup and relieve his hunger but the man with the eba will be stuck with his eba as he cannot swallow it without soup. However, if they both team up, they would each have a sumptuous meal.

· Setting up a party with egg shell skull for a head butt combat with a “Mutiu Adepoju” (then Super Eagles “Headmaster”) can only end in tragedy.

· History is replete with the Julius Caesar experience. It is the same cheer leaders that are singing the praises and eulogizing Geometric, that will put the knife to its heart when the cookies crumble.

· Geometric should beware of the Ides of March.

· Akpantah is a Chartered Accountant and management consultant

·
https://www.thisdaylive.com/index.php/2022/03/30/geometric-beware-of-the-ides-of-march/

justified007:
Commissioned where ? Where are the projects ? Dapo is still struggling to finish the projects Amosun started talklesss of initiating new ones . The few ones he commissioned are inferior projects. Dapo is the only that will do 2 lanes out of 4 lanes and he will still not finish the 2 lanes . Come and see the shoddy jobs he's doing around Olomore.

The Ijebu Ode - Epe express way is not a initiative project, abi?

He didn't finish it and commission it, abi?

Keep lying through your tooth.

totit:
The OP fell flat, got the beaten of his life on here and then went and open another thread.

Guys, well done, I enjoy every bit of it, beaten the OP and his cretins black and blue.

Below is here the OP ran to;
https://www.nairaland.com/7117848/ibadan-skyline-vs-aba-skyline/1#up

Cc ;

Forgiveness, Michael004, obaaderemi, walefresh3, et Al.

There is no need arguing with those who thinks Aba is better than Ibadan because they never traveled before to see for themselves.

I have lived in both cities and I know Aba is way below Ibadan in terms of development not to talk of Oshogbo.

OFFICIAL336:
Swartz
Zungeru is genco. It was a mistake. TCN manages the distribution.

Aba Geometric is a $500 million project.

Hating is allowed.

Exactly! The same way you are making a mistake by claiming Geometric is a $500m project.

No Dey deceive people here.

OFFICIAL336:
I am not here to waste time with you.

The project is in phases and the first phase will supply 141 MW.

Zungeru is a disco. Geometric is both a Genco and disco. I already pointed this out above.

By July, I'll be enjoying 24/7 light

Keep hating

Who told you Zungeru is disco?


Mr man, na $50m Berth take finish that project and he borrowed the money from world Bank.

Where will he get $500m in the first place? Who go borrow am?

Stop lying. Okay.

OFFICIAL336:
Whether Aba is developed or not is not my business. The only thing I am sure is that Aba is more developed than Ibadan.

Develop with potopoto roads

Dude, I have lived in Aba and Ibadan for 8 and 5 years respectively. And I can tell you Aba is way behind Ota, Abeokuta, Akure, Oshogbo etc in terms of infrastructure development not to talk of Ibadan that is arguably in the top ten most developed cities in Nigeria.

In terms of infrastructural development, these are the most developed cities in Nigeria.

1. Lagos
2. Abuja
3. Ikeja
4. Port Harcourt
5. Lekki
6. Ibadan
7. Kaduna
8. Kano
9. Enugu
10. Abeokuta

OFFICIAL336:
E no far again, by July you go confirm am. $500 million don already enter the project.

UI is on a class of its own, but the environment is an eye sore. Also, you said Ibadan has a better skyline than Aba, please check out this rooftop view of Agbowo. UI is in Agbowo.


https://www.youtube.com/watch?v=8UIrwolNMrc

This is Aba skyline. you cant possible compare with Ibadan


https://www.youtube.com/watch?v=kb4mMQe4p8A

This is the area around Abia Poly, Aba. See how inviting the area is compared to UI


https://www.youtube.com/watch?v=2Y39Pdt52Cc&t=644s


Name all the malls and we will start comparing them.

Only Aba Mega Mall is a $300 million dollar project.


Go and find out why Aba is called the Japan of Africa.



This is Aba roads.


https://www.youtube.com/watch?v=eAvG-I5k8rg


You never defeat Aba and you want us to bring Onitsha into the fight. Owerri still dey, we never even mention Enugu.

Defeat Aba first

Aba is an underdeveloped town. Once it's 9pm, it becomes a ghost town.

Afonjakid:
Planned work or on going work

It's on going but no ABA trader wan go there.

OFFICIAL336:
This is a private sector driven project.

Are you insane?

Did I say the project will worth more than $1.4 billion? Its $500 million dude.

If Zungeru hydroelectric project of 700MW worths/costs $1.4b, na 141MW project go worth/cost $500m? Common sense is not common.

Zungeru is even a dam constructed from scratch. How much more a project on dry land?

Think!

Obviously, the proposed project is a 1,080MW. Not 141MW.


LAGOS, (Reuters) – Nigeria’s Geometric Power will build a 1,080 megawatt power plant jointly with General Electric , with the first phase of the project generating 500 MW expected to be completed in 2019 at a cost of $800 million.

OFFICIAL336:
Yeah, the first phase.

Aba Mega mall will have:

1. A dry port (it will be the first mall in Africa with a dry port)

2. 10 MW Independent power supply

3. 100 room five star hotel

4. The mall will support both online and offline shopping and it will be a smart mall

The mall is a $300 million project

ABA Mall along Enugu- Port Harcourt road before you get to Osisioma by the left is worth $300 m!?

That place dry die. Na agbo jedi jedi people rent shops pass for that place.

Just tune to MCL channel. You go see dem advertising.

Stop lying.

OFFICIAL336:
Aba Geometric is worth $500 million

A distribution company, generation company, and a 27km gas pipeline are all part of this project.

141MW worths $500 m!?


Zungeru hydroelectric project with 700MW worths just $1.4b but a 141 MW will worth more than dat?

Ngorbungor:
Ariara international market worth over $3Billion[/b], that Market alone provides over a million direct and indirect jobs, with over 50,000 [/b]stores still counting
Do you think we are joking, we are doing same in Lagos Computer Village, Ala-Aba, Trade Fair etc.

If you guys want to compete with use try replicating ABA, Onitsha, Ala-Aba, Computer Village etc in Ibadan, Oshogbo, Akure, Abeokuta and Ado-Ekiti if you guys are even half man enough.

Which Ariaria Market worth $3 billion? The same Ariaria Market on Faulks road?

I can trek from Powerline down through A line to get to Enugu - Port Harcourt express way.

And I can categorically tell you it doesn't worth up to that.

Na potopoto road full dat place.

Things are very cheap there. Stop lying next time.

Sorry to inform you, computer village is not dominated by one particular ethic group.

Besides, Facebook alone is worth more than all those markets.

OFFICIAL336:
Aba Geometric power project is a $500 million project in Aba. Name a $100 million project in Ibadan

It's not $500 million, rather $50m.

That of $500 is another project but it's yet to kick off.

British America Tobacco company worths more than $100m.

Yooruba1914:
If they deny him this time and he decamps, he will win cause GNI is going to senate.

Who go vote for am?

Addme:
Trust me, he actually defeated Dapo but Osibanjo/Tinubu abracadabra made Dapo the governor.
Darudapo as he's known in Ogun now is a disaster as governor.

Darupado because he is developing other parts of Ogun state, abi?

Is Abeokuta only Ogun state?

Olakunleyakub:
If amosun support tinubu presidential ambition den tinubu will later support akinlade and that might be a game over for dapo considering his poor performance too

I don't understand what you people mean by "his poor performance" considering the numbers of projects he has commissioned across the state.

andrewbaba44:
Moses Simon wins coupe d France with Nantes ,their first trophy since 21 years

Moses the slayer.

mostob:
Uzoho currently in camp

It runs in the family

Later, they will tell you he is 40 years old as soon as he grow reach him brother. Smh

Shaolin77:
Igbos control banks in Nigeria , list bank firm yorubas control larger stakes or head by Yoruba's in Nigeria, let me list Igbo headed and dominated banks let's compare

List of banks in Nigeria

This is a list of commercial banks with International Authorization in Nigeria, arranged alphabetically.

1. Access Bank Plc Igbo largest shareholders
2. Fidelity Bank Plc Igbo Largest Shareholders
3. First City Monument Bank Limited Yoruba Largest Shareholders
4. First Bank of Nigeria Limited Yoruba Largest Shareholders
5. Guaranty Trust Holding Company Plc Yoruba Largest Shareholders
6. Union Bank of Nigeria Plc - Foreigner largest shareholders headed by Igbo
7. United Bank for Africa Plc - Anioma Igbo Largest Shareholders while Yorubas are the second largest shareholders.
8. Zenith Bank Plc - Ika Largest Shareholder
9. Citibank Nigeria Limited Foreign Bank Headed by Yoruba
10. Ecobank Nigeria Foreign Bank Headed by Yoruba
11. Heritage Bank Plc headed by SS.
12. Keystone Bank Limited Northern largest shareholder and headed by Yoruba
13. Polaris Bank Limited. The successor to Skye Bank Plc.[2] Northern and Yoruba Largest Shareholders headed by Igbo
14. Stanbic IBTC Bank Plc - Foreign Bank Headed by Yoruba
15. Standard Chartered Foreign Bank Headed by Yoruba
16. Sterling Bank Plc - Yoruba Largest single Shareholder and headed by Yoruba
17. Titan Trust Bank Limited - Foreign Bank Headed by Yoruba
18. Unity Bank Plc - Northern largest Shareholders headed by Yoruba.
19. Wema Bank Plc - Yoruba Largest
Shareholders

lightskinnigga:
Awka icc is also the best in Nigeria!!!

Igbos to the world!!

Have you seen Calabar ICC?

walefresh3:
Yoruba land be baba ogun state I don come

Good job. Which city is the first picture in Ogun state?

haslaw:
No, I am not joking

Yes, YOO are a LIAR

No, the Awololowo family doesn't have and never had that kind of money, and even if they did, would they just hand over all of to the Judas? Use your brain.

Also, it is clear theif Osinbajo stole the money from trader moni and NEMA and other places.

Apart from Kiki Osinbajo, the criminal's lazy and jobless daughter, name one other Awololowo's great grand daughter who is able to buy an 800 million Naira house in Abuja.

Kiki mother who is the direct heir of Awolowo is late, and she only had 3 children.

She must have inherited something her mother after her demise.

Awolowo has many properties. The one at Awolowo road in Ikeja worth more than 3 billion Naira.

You are definitely a novice.

basilo101:
Same way oduduwa is one clan history and also recent. Forget about the acceptance or otherwise

Oduduwa is not a one clan history.

All Yorubas believe and accept they are descendants of Oduduwa.

haslaw:
YOO and your ancestors MUMU no be small. YOU are a LIAR.
1) Judas theif Osinbajo is not a descendant of Awololowo
2) The Awololowo family do not have such wealth

Hahahaha! Awolowo's family doesn't have such wealth!?

Are you joking?

You are an ignoramus.

Besides, Osinbajo's wife not Osinbajo is the granddaughter of Awolowo.

darling2222:
Wow ,they can't confuse us anymore, because we re all convinced now

Don't be deceived. Osinbajo's wife is from a very wealthy family.

Even Osinbajo is wealthy as at when he was ACN and Lagos state attorney.

haslaw:
It seems so because theif Osinbajo is yet to explain hi stupendous wealth and how his lazy and jobless daughter came up with the money to buy a property worth over 800million Naira

Have you forgotten that Osinbajo's wife Awolowo's granddaughter?

andrewbaba44:
Say mendy for Madrid do owngoal ?

Na Chelsea Mendy's free gift goal still Dey pain me.

Real Madrid Dey give wotorwotor. Chaiii! Mendy!!!!!! Why na?

Truthisunique2:
consensus is the simplest to do when burden of chaos like this presents itself

The leader buhari have a strong hold he has on apc members

He just need to call for it all his ministers, the VP, govs and businessmen would sign willfully to show respect

Only tinubu may have the ego to resist his decision but he would come along when it seems he is the selfish one that can't sacrifice when the majority can do so and the supposed elder can't compromise

Nobody would force aspirants to sign they would do it themselves

To show respect to who? Buhari!?

Nobody will sign anything. Be rest assured.

If Buhari dears forces his decision, the party is as good as gone.

Abascoh:
There will be no primaries. There's no way APC will conduct a primary with 30 candidates on the ballot, they will settle for consensus candidate option and Buhari will decide who the consensus candidate will be. That's the game plan

There is a law guiding consensus candidate. It requires getting an official letter from all the candidates stating they agreed to it and it must be sent to Inec.

How many of them will agree?

mostob:
Moses Simon again The guy's juju must be strong

He is one of our best players in Europe.

lelion:
I don't think any of them is above 22, believe me. We have been interacting with them closely for 4 days now.

Na dat one I no know ooo.