- The Delta State House of Assembly approved a ₦18.1 billion bank guarantee for the Asaba Independent Power Project, strengthening the state’s energy ambitions.
- The approval also reflects the government’s commitment to financial efficiency and sustainable infrastructure growth.
The Delta State House of Assembly has approved a ₦18.1 billion bank guarantee for the Asaba Independent Power Project (IPP), reinforcing the state’s vision for sustainable energy growth and fiscal responsibility.
The approval, granted to Governor Sheriff Oborevwori’s administration, allows the reissuance of the guarantee from Sterling Bank to Access Bank Plc in favour of Bastanchury Power Solutions Nigeria Limited, the project’s developer.
Governor Oborevwori explained that this reissuance will strengthen collaboration between Access Bank and the Delta State Government in managing the state’s Internally Generated Revenue (IGR). As a result, the partnership will improve efficiency, enhance revenue collection, and ensure stable funding for strategic infrastructure such as the Asaba Power Plant.
Under the Power Purchase Agreement (PPA), Delta State is required to issue an annual bank guarantee of ₦ 18.1 billion to cover compensation and buy-out payments. Additionally, a monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, subject to a 2.5% yearly increase, will fund operational and maintenance costs directly from the composite IGR account managed by Access Bank.
The State Executive Council has endorsed Access Bank’s replacement of Sterling Bank’s guarantee to ensure a smooth financial transition. Following the governor’s presentation, the House unanimously approved the motion, reflecting its unified support for the state’s energy and infrastructure development agenda.
Governor Oborevwori reaffirmed his administration’s dedication to fiscal discipline, transparency, and social welfare. He also highlighted recent pension reforms and consistent payments, emphasising that Delta State remains focused on building a reliable, efficient, and future-ready power infrastructure for sustainable growth.