RVHA Approves Bond Guarantee For Power Firm

Rivers State House of Assembly has unanimously approved through
a resolution request by Governor Chibuike Rotimi Amaechi, for the issuance of
Guarantee  for the Acquisition of Power
Distribution Company by 4-Power Consortium Limited.

A correspondence from the state Governor dated October 8,
2012, to the House said “the resolution requested will enable the state support
the completion of acquisition of the Port Harcourt District Company currently
being privatized by the Bureau for Public Enterprises (BPE).”

After robust debate Wednesday, on the issue, the Speaker Rt.
Hon. Otelemaba Amachree, said the House hereby authorizes Guaranty Trust Bank
Plc to issue bonds and guarantees on behalf of 4-power Consortium Limited, in
form of the Bureau of Public Enterprises or any other beneficiary as may be
requested by the company utilizing the bond and guarantee to the state by the
bank.

The Tide learnt that the resolution implies irreversibly and
unconditionally agreeing to indemnify the bank in full on demand against all
loses, costs and expenses that may be suffered or incurred by the bank arising
from and in connection with the issuance of the bond.

Opening debate on the request, the whip of the House Hon.
Ikuniyi Ibani, said granting the request of the governor would give the state
opportunity to participate in the distribution of power generated from its
independent power project (IPP), and urged the lawmakers to support the
governor’s effort.

Hon. Augustine Ngo, representing Abua/Odual, argued that
Power Holding Company (PHCN) lacked enough facilities to accommodate power
generated by the state and described the unbundling of the company as a welcome
development since the move would increase power supply to the homes of Rivers
people.

The lawmaker opined that availability of electricity supply
will aid development because small and medium scale enterprises would be
encouraged as well as other investors that would create employment for the
youths.