The new investor in the Yola Electricity Distribution Company (YEDC), Quest Electricity Nigeria Limited, has promised to improve the quality of life of residents of the North East region through an aggressive investment drive that would serve as an economic tool for combating the insurgency in the region.
The Director General of the Bureau of Public Enterprises (BPE), Mr Alex Okoh, said the new investor had committed to a Performance Improvement Programme which will involve an investment of US$68 million (N28 billion) over a period of two years.
Okoh stated this at the signing ceremony of the Share Sale and Purchase Agreement (SSPA) for the privatisation of YEDC in Abuja.
He disclosed that the investor would hugely boost the Company’s electricity distribution network by reducing ATC & C losses, expanding customer base and increasing energy supply.
‘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 within a period of five years.”
‘These include Reduction in ATC & C losses from the current level of 80% (which is the highest in the industry) to 29% (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),’ he said.
The DG further disclosed that the aggressive investment drive by Quest Electricity Nigeria Limited which is expected to bolster energy supply, will, in turn, stimulate economic growth and development in the region through the creation of new industries and opportunities, attracting much-needed investment, and boosting job creation.
While noting the rigorous process of the negotiation which took place in the wake of the COVID-19 pandemic and its crippling impact on economic activities as well the challenging operational environment in the North East region of the country, Okoh said it is a testament to the commitment and doggedness of the parties to deliver on the transaction and the high collaborative spirit between the Federal Government and the Core Investor.
Also speaking, the Chairman of Quest Electricity Nigeria Limited, Alhaji Adamu Mele, noted the insecurity in the company’s area of the franchise but assured that it would work around it to transform the distribution company within a short time through the infrastructural upgrade.
Recall that following the approval of the National Council on Privatisation (NCP) for the privatisation of the Yola Electricity Distribution Company (YEDC) and the conclusion of a competitive bidding process involving local and international investors, Quest Electricity Nigeria Limited emerged as the Preferred Bidder with a bid price of N19 billion.