Osinbajo spoke yesterday in Abuja during the presentation of the discharge certificate of Ughelli power plant to Tony Elumelu, chairman of Transcorp Power Plc.

Transcorp Power is the core investor in the Ughelli power plant.

The delisting comes a month after the national council on privatisation (NPC) approved the Bureau of Public Enterprise (BPE’s) recommendations, and after Ughelli Power Plc (UPP) had met key post-acquisition requirements including available capacity and capital expenditure.

Commissioned in 1966 with an installed capacity of 972MW, the Ughelli power plant, whose capacity had dropped to 300MW, became an asset of Transcorp Plc in 2013 under the company’s power subsidiary, Transcorp Ughelli Power Limited.

Speaking at the ceremony before the commencement of the NPC meeting, Osinbajo encouraged other players in the industry to tow the line of Transcorp Power Plc.

“We hope that this will not be the last in the series of private power companies that are taking over power plants that are unable to meet the expectations of the post-evaluation plans,” the VP said.

“The power needs of our country are grave. And we strongly believe that the right approach is the privatisation of the power sector to enable serious-minded private sector players to invest in the provision of public power and ensure that they are efficient while they make a profit at the same time.”

Explaining the routine evaluation and monitoring of the power-generating company, Osinbajo said it was an essential feature of the post-acquisition plan by the BPE.

“It has covenants and deliverables which the enterprise is supposed to live up to. And we found, in this case, that Transcorp Power Plc has done exactly that,” he said.

“We have been able to ensure compliance with all of the deliverables and, in some cases, even exceeding the covenanted deliverables in the PAP.”

On his part, Alex Okoh, director-general of BPE, said the discharge certificate became necessary after an evaluation showed that UPP’s generation capacity under Transcorp Power grew by 227 percent in a decade.

“Following a capacity determination and validation of Ughelli Power PLC by the consultants engaged by the National Council on Privatisation, it was determined that generation capacity had increased by about 227 per cent from the operational status of 300 megawatts at the point of handover in 2013,” Okoh said.

“The company has achieved an available capacity of 680.8 megawatts, which surpasses the minimum performance target of 670 megawatts.

“Capital expenditure totaling N58.6 billion was the covenant established or phases one and two of the post-acquisition plan, while actual investments made by the current investor were in the sum of N83.85 billion.

“All the agreed benchmarks on human resources, health, safety and environment and corporate social responsibility have also been achieved.

“Your Excellency, having exceeded the minimum performance targets and having fulfilled all the agreed obligations, the National Council on Privatisation at its meeting on April 4, 2023, considered and approved the recommendations of the Bureau and its requests that the company, Ughelli Power PLC be approved for delisting from routine monitoring.”