TRANSCORP UGHELLI LAUDS U.S. POWER INITIATIVE FOR AFRICA

The new owner of Transcorp Ughelli Power Limited (TUPL) has said the United States' $7bn Power Africa Initiative is achieving substantial results following the $300 million payment to acquire the generation company.

In a statement, the chairman of Heirs Holdings and of Transcorp, Mr Tony Elumelu said, "It is a major stride forward and has significance for Nigeria, the region and Obama's administration, as it represents positive progress in the fulfilment of Power Africa."

Heirs Holdings recently committed $2.5 billion toward the Power Africa Initiative, a multi-stakeholder partnership between the US government and seven sub-Saharan African countries, including Nigeria.

Earlier this year, Transcorp signed a cooperation agreement with General Electric (GE) for the development of the power sector in Nigeria.

TUPL announced last week a $225 million payment to Nigeria's Bureau of Public Enterprises (BPE) representing the 75 per cent balance of the $300 million bid price for the 1000 megawatts capacity plant. TUPL made an initial deposit of $75m (25 percent) for the plant in February this year, the statement said.

The new owners said it will partner with an American investor, Symbion Power to increase the power generation from 300MW to over 1070MW over the next five years.

TUPL had also collaborated with United Bank for Africa Plc (UBA) and the Africa Finance Corporation (AFC) to co-arrange the fund while First City Monument Bank Plc (FCMB) and Fidelity Bank served as co-financiers for the debt financing of the PHCN unbundled power firm.

Source: Daily Trust