Background
Geregu Power Plant (GPP) was built by Siemens and commissioned in February 2008. The objective for setting up the plant was to boost power generation capacity as part of the overall effort to improve the electricity supply situation in the country, using effective technical and profitable management skills in the operation of the power station.
GPP is one of the five thermal successor generation stations unbundled out of the Power Holding Company of Nigeria (“PHCN”) and subsequently privatised as part of the FGN’s reform of the power sector. The plant currently has an installed capacity of 145x3 (turbines)=435MW.
The Honourable Minister is invited to recall that as part of the privatisation program of the Federal Government, 51% of FGN’s shares in the Company were sold to Amperion on 1st November 2013 for a purchase consideration of N20.53 billion. Since the assumption of control of the plant by Amperion, the Company has carried out both scheduled and major overhauls on the three turbines in line with global operating standards, which increased the plant’s capacity from 414MW to 435MW.
The Honourable Minister would also recall that further to its approval granted at its 1st meeting for 2019 held on 12th April 2019, BPE sold an additional 29% out of FGN’s 49% shareholding in the company to Amperion in 2019 for the sum of N13.134billion. Following the conclusion of this transaction in September 2019, Amperion’s shareholding in the Company increased to 80% while that of FGN’s reduced to 20%.
The Company has met the performance targets within the stipulated timeline as contained in the Performance Agreement signed with the Bureau of Public Enterprises with respect to ramp-up capacity and technical upgrade of the plant to the threshold agreed in the Performance Agreement.
