The Delta State House of Assembly has approved Governor Sheriff Oborevwori’s request to re-issue a ₦18.1 billion Bank Guarantee (BG) for the Asaba Independent Power Plant, transferring the facility from Sterling Bank to Access Bank Plc.
The approval followed a letter from the governor, read on the floor of the House by Speaker Rt. Hon. Emomotimi Guwor during Tuesday’s plenary session.
According to the letter, the state government is re-aligning its financial partnership, as Access Bank Plc has expressed interest in managing the state’s Composite Internally Generated Revenue (IGR) account to improve revenue performance through enhanced systems.
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Governor Oborevwori explained that the IGR account is currently tied to an existing Bank Guarantee of over ₦18 billion, earlier issued on behalf of Bastanchury Power Solution Nigeria Limited under the Asaba Independent Power Purchase Agreement (PPA).
Under the agreement, the state government has two major obligations – to issue an ₦18.1 billion Bank Guarantee, renewable annually, to cover compensation and buy-out costs in the PPA and to issue a monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, with a 2.5 percent annual increment, to cover capacity, operation, and maintenance charges.
The governor added that the State Executive Council (SEC) had already approved the transition, authorizing Access Bank to issue the new guarantee in the same format as Sterling Bank’s, ensuring a smooth handover and cancellation of the old facility.
The motion for approval was moved by the Majority Leader, Hon. Emeka Nwaobi, and seconded by Deputy Speaker Rt. Hon. Arthur Akpowowo. It was unanimously adopted through a voice vote led by Speaker Guwor.
