Delta Assembly Backs Oborevwori’s ₦18.1 Billion Bank Guarantee Swap For Asaba Power Project
By PAULINA NZERUBE
THE Delta State House of Assembly has approved Governor Sheriff Oborevwori’s request for the re-issuance of a ₦18.1 billion Bank Guarantee, transferring the facility from Sterling Bank to Access Bank Plc in favour of Bastanchury Power Solutions Nigeria Limited, developers of the Asaba Independent Power Plant (IPP).
The governor’s request was conveyed to lawmakers through a letter read on the floor by Speaker Dennis Guwor during Tuesday’s plenary session.
According to Oborevwori, the re-issuance became necessary to enable Access Bank’s continued partnership with the state government in managing Delta’s composite Internally Generated Revenue (IGR) account. The collaboration, he noted, is designed to strengthen the state’s revenue systems and enhance financial performance.
The governor explained that the existing composite IGR account is presently tied to a Sterling Bank guarantee exceeding ₦18 billion, issued on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA).
Under the terms of the PPA, the state government has two key obligations:
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The annual issuance of a ₦18.1 billion Bank Guarantee to cover compensation and buy-out costs.
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A monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, with a 2.5 per cent yearly increment, to cover capacity, operations, and maintenance charges for the power infrastructure—funds drawn directly from the composite IGR account domiciled with Access Bank.
Oborevwori informed the Assembly that the State Executive Council had already approved the arrangement for Access Bank to issue a fresh ₦18.1 billion guarantee in the same format as the existing one from Sterling Bank.
“Upon the issuance of the new guarantee, the one from Sterling Bank will be cancelled to ensure a seamless transition,” the governor stated.
Following the presentation, Majority Leader Emeka Nwaobi moved a motion for the House to approve the request. The motion, seconded by Deputy Speaker Arthur Akpowowo, was unanimously adopted through a voice vote.
