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Power firms can raise funds from market – Nebo

By on November 20, 2014

The 11 power distribution companies and six generation companies have been empowered by the Electric Power Sector Reform Act to go into the capital market or financial institutions to raise necessary funds for their operations, the Minister of Power, Prof. Chinedu Nebo, has said.

The minister said the tremendous capital outlay on generation, transmission and distribution of the power sector was intended to fast-track the efforts of the private sector, and by so doing move the country towards industrialisation and higher Gross Domestic Product.

The minister, who highlighted these at the opening ceremony of the 11th Annual West African Power Industry Convention in Lagos on Tuesday, said one of the main objectives of the power sector reforms among others, was to encourage the successor companies to undertake investment programmes to ensure that the sector is driven by private hands while the Federal Government provides the enabling environment.

The implementation of the EPSR Act, he explained, led to the establishment of Nigerian Electricity Regulatory Commission, which is mandated to carry out the monitoring and regulation of the electricity industry and also issue licenses to market participants and ensuring compliance with market rules and operating guidelines.

Nebo said part of the incentives employed to attract private investors into the sector included the Multi-Year Tariff Order and the Model Power Purchase Agreement, of which the implementation had been perfected.

According to him, despite the willful damage to power equipment and inadequate gas supply, there were various windows of investment opportunities for business in the generation, transmission and distribution sectors and the ambitious plan for expansion over the coming years.

“Investors can participate in the following schemes: Independent Power Project; Build, Operate and Transfer; Rehabilitate, Operate and Transfer; production of various materials such as transformers, cables, insulators, LED bulbs and other services needed to support the anticipated exponential growth in the operation of the new power generation companies in the country,” the minister advised.

 

[Punch]