Yola disco (YEDC) has unfolded a two-year N28 billion Performance Improvement Plan, the Bureau of Public Enterprises (BPE) has said.
It made this known in a statement. It noted that Quest Electricity Nigeria Limited, the new investor in the YEDC is committed to improving the quality of life of the inhabitants in the Northeast geopolitical region through aggressive investment drive, thereby providing a tool for combating the insurgency in the region has said.
Director-General, BPE, Alex A. Okoh, who stated this at the signing of the Share Sale and Purchase Agreement (SSPA) for the privatisation of YEDC, in Abuja, said, in addition to paying the purchase fee of N19billion, the new investor had committed to a Performance Improvement Programme, which would involve an investment of US$68 million (N28billion) for over two years.
BPE, Head, Public Communications, Amina Tukur Othman, quoted Okoh as saying: “This investment will be utilised for the purpose of carrying out an extensive upgrade of the company’s electricity distribution network, to bring the business to the level of financial viability. It is expected that this investment will deliver results within a period of five years.”
These include: Reduction in ATC & C losses from 80 per cent (which is the highest in the industry) to 29 per cent (this translates to a 51 per cent loss reduction); growth in customer base from 396,650 to 596,650 (which represents a 50 per cent increase); and a significant increase in energy supplied from 1,305 GWh to 1,714GWh (an increase of over 400 GWh (31 per cent increase).
Similarly, he said, as a result of the aggressive investment drive by the investor, “it is expected that the increase in energy supply will stimulate economic growth and development in this region through: the creation of new industries and opportunities; attracting much needed investment; and boosting job creation’’.
Noting the rigorous process of the negotiation, which took place in the wake of the COVID-19 pandemic and its crippling impact on economic activities as well the challenging operational environment in the Northeast region of the country, Okoh said it is a testament to the commitment and doggedness of the parties to deliver on the transaction and the high collaborative spirit between the Federal Government and the Core Investor.
“Moreover, it is a clear indication that there is still a significant level of interest on the part of investors in the Federal Government’s reform and privatisation programme, notwithstanding the challenges in the power sector and the reaction that has trailed the privatisation process. This continued interest shows that the Federal Government took the right decision in reforming the power sector.
Also, the Chairman of Quest Electricity Nigeria Limited, Alhaji Adamu Mele, noted the insecurity in company’s area of franchise but assured that it would work round it to transform the distribution company within a short time through infrastructure upgrade.
It would be recalled that following the approval of the National Council on Privatisation (NCP) for the privatisation of the Yola Electricity Distribution Company (YEDC) and the conclusion of a competitive and transparent bidding process involving local and international investors, Quest Electricity Nigeria Limited emerged as the Preferred Bidder with a bid price of N19billion.