The Nigerian Bulk Electricity Trading (NBET) and Transcorp Power – the mother company of TransAfam Power Plant Ltd, yesterday signed a power purchase agreement for the 726 megawatts (MW) TransAfam Power Plant Ltd located in Okoloma, Rivers State.
The agreement which was signed in the Federal Ministry of Finance, Budget and National Planning is geared towards improving Nigeria’s power generation capacity.
Speaking during the signing ceremony, the Managing Director/CEO of NBET, Dr Nnaemeka Ewelukwa, said the agreement exemplified the success of power sector privatisation, noting that the agreement would run for 20 years.
He said, “The bidding was done by BPE and TransAfam Power won the bidding. Subsequently, NBET got regulatory approvals from the Nigerian Electricity Regulatory Commission (NERC), Bureau of Public Procurement (BPP), Ministry of Justice, as well as presidential approval for the takeover.
He added that there was a 15-year ramp up plan to boost efficiency of the power plant, noting that the purchase agreement would span 20 years.
Also speaking, the Chairman of TransAfam Power, Stanley Lawson, said the agreement was instrumental to the company as a commitment that government would pay for the power they generated and transmitted to the national grid, while pledging the company’s commitment to drive power generation in the country.