Power Deal between Transcorp, GE

Fri, Jan 31, 2014

By publisher

3 MIN READ

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The Transcorp Ugheli Power Ltd and General Electric have signed agreements that will dramatically increase power supply in the country

|  By Maureen Chigbo  |  Feb. 10, 2014 @ 01:00 GMT

THERE is hope that the power supply situation in the country which has degenerated recently will improve soon. This is because of the agreements the Transcorp Ughelli Power Ltd, TUPL, the power subsidiary of Transnational Corporation of Nigeria Plc, Transcorp, and General Electric, GE, signed Friday, January 31, to expand the capacity of TUPL’s Ughelli power plant by 1000 megawatts, MW, over the next three to five years. Another separate agreement between the parties is for the rehabilitation of the damaged GT 15 turbine at the Ughelli plant, which will add 115 MW to the plant’s output. The agreements were signed at a closed door meeting between executives of both companies, led by Tony O. Elumelu, chairman of Transcorp and Heirs Holdings and Jeffrey Immelt, global chairman of General Electric.   They followed a cooperation agreement executed by Transcorp and GE in 2013.

Currently, the Transcorp Ughelli power plant generates 360MW of electricity, up from 160 MW on November 1, 2013, when Transcorp took ownership of the plant. With the additional 115 MW, as well as other rehabilitation works planned at the plant, output at Ughelli will increase to 700 MW by December 2014. The Ughelli power plant is Nigeria’s largest gas-fired electricity generation asset. Purchased by Transcorp during the 2013 power privatisation programme, the $300 million plant is part of the $2.5 billion investment pledge made by  Elumelu to deliver affordable, accessible power to Africa under the Power Africa Initiative. Heirs Holdings, Elumelu’s pan-African proprietary investment company, is Power Africa’s largest private sector investor and a major investor in Transcorp.

Elumelu said: “We are very pleased to work with GE, a proven world leader in power technology development, on the Ughelli plant expansion project. With this, we’ve taken a bold step in fulfilling our promise to Transcorp’s stakeholders and the people of Nigeria. In a very short period of time, we have achieved significant impact – power production has more than doubled, and with this agreement, we will see increased output before the end of this year. We are confident that this partnership with GE will further accelerate the achievement of our goals in the power sector.”

According to Immelt, “GE fully appreciates the confidence expressed by Transcorp. We are happy to bring the considerable resources of GE to support Transcorp’s audacious vision for Nigeria’s Power industry. This partnership with Transcorp underlines GE’s deep commitment to developing the Nigerian power sector.”

A publicly listed conglomerate with strategic investments in the power, hospitality, business and energy sectors, Transcorp, through TUPL, is committed to transform and bring the plant to profitability by increasing its generating capacity to impact positively on the socio-economic development of Nigeria. Transnational Corporation of Nigeria Plc is a publicly quoted conglomerate with a diversified shareholder base of more than 300,000 investors, the most prominent of which is Heirs Holdings Limited, a pan-African proprietary investment company. The Transcorp portfolio comprises strategic investments in the power, hospitality, agribusiness and energy sectors. Our notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels, Calabar; Teragro Commodities Limited, operator of Teragro Benfruit plant – Nigeria’s first-of-its-kind juice concentrate plant; Transcorp Ughelli Power Limited and Transcorp Energy Limited, operator of OPL 281.

GE, one of the world’s most reputable companies is the global leader in the design, manufacture, supply, installation and maintenance of technology and services for the Power, Aviation, Oil and Gas, Healthcare and Transportation sectors.