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Nigerian banks to inject $160m into Ibadan Disco

By BusinessNews Staff on September 21, 2014

A consortium of Nigerian financial institutions is set to inject $160 million into the Ibadan Electricity Distribution Company (IBEDC) as the company marks its first year anniversary.

This came as THISDAY reliably gathered that some of the coverage areas are already enjoying about 18hours of uninterrupted power supply daily, a development the company’s Managing Director, FortunatoLeynes attributed to “some of the major achievements in the last ten months” the company took over the management of the power asset.

Speaking to reporters at a pre-event press conference held in Ibadan yesterday, Leynes who was accompanied by his deputy, John Darlington said: “We are happy to inform you that IBEDC, true to our mission of distributing power, changing lives, is bringing back smiles to the faces of our customers.”

He said the $160 million loan will come from a consortium of banks led by Skye Bank Plc, to improve the Disco’s operations.He stated that the IBEDC, in its 10 months of operation attended to complaints by electricity users quickly and efficiently, unlike what was obtainable prior to its takeover of the power asset. “Now, our customers can testify to our quick response on fault clearing and line repairs”, he said.

He added: “It is pertinent to note that as a distribution company, we are at the tail-end of the electricity supply chain. It is what is delivered to us that we distribute to our customers”.

Leynessaid the company spent N150 million to rehabilitate its Akanran sub-station at Olorunsogo following a brazen arson damaged the two 15MVA transformers under the management of the defunct Power Holding Company of Nigeria (PHCN). He said residents of the area were without electricity for close to three years, but disclosed that the sub-station has since been commissioned by Governor AbiolaAjimobi of 0yo State.

Leynes also disclosed plans by the power firm to raise its capacity through embedded power generation even as it prepares to launch a new brand identity in November.

He revealed that the company would hold an open bid to choose two top bidders who would be expected to inject between 15 and 30 megawatts to the distribution company’s capacity in order to satisfy its customers.

According to him, one of the challenges facing the company was inadequate power from the generating companies to distribute to its numerous customers. However, he said the move to attract investors, was to complement the company’s distribution to customers in the franchise area.

He explained that companies that approached the IBEDC to generate electricity would be doing so through solar and gas, even as he disclosed the Ibadan disco’s plans to add about 200 megawatts to distribute in the franchise areas.

To improve on its services in the franchise areas, the IBEDC boss said the company had started buying electricity distribution materials like transformers, poles and conductors that will improve its distribution capacity

He said: “We are also buying metres so that our customers will be appropriately metered,” adding that “right now, we have this metre application which could be gotten through Credited Advance Payment for Metering Implementation (CAPMI) scheme in which customers would make initial deposit and the company would refund the deposit over a period of 36 months with corresponding interest and within 45 days, their metres are installed.”

[This Day]

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