Quest Electricity Nigeria Limited, the new investor in Yola Electricity Distribution Company (YEDC), has pledged to invest $68 million (about N28billion) into the firm over a period of two years.
The amount is outside the payment of purchase fee of N19billion by the core investor. Director-General, Bureau of Public Enterprises (BPE) Mr. Alex Okoh, confirmed the amount at the signing ceremony of the Share Sale and Purchase Agreement (SSPA) for the privatisation of YEDC in Abuja, according to a statement by BPE.
The Disco, in addition, pledged its commitment to improving the quality of life of the inhabitants in the North Eastgeopoliticalzonethrough aggressive investment drive, thereby providing an economic tool for combating the insurgency in the region.
On various investment plans, the statement quoted BPE as saying “this investment will be utilised for the purpose of carrying out an extensive upgrade of the company’s electricity distribution network, in order to bring the business to the level of financial viability.
“It is expected that this investment will deliver results withina period of fiveyears.” Okoh listed the investment focus to include reduction in ATC & C losses from the current level of 80 per cent (which is the highest in the industry) to 29 per cent (this translates to a 51% loss reduction), growth in customer base from 396,650 to 596,650 (which represents a 50% increase), and a significant increase in energy supplied from 1,305 GWh to 1,714GWh (an increase of over 400 GWh (31% 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.”