From Kayemo News
The Ekiti State Executive Council has approved the renewal of the Bank Guarantee for the 3MW Ekiti Independent Power Plant (IPP) in the sum of ₦5,711,196,385.48, representing the buyout value for the third year of the plant.
This was parts of the decisions reached at the end of the state executive meeting held today at the government house Ado Ekiti.
According to a statement by the Commissioner for Information, Mr Taiwo Olatunbosun, the approved renewal is to be forwarded to the State House of Assembly for legislative processing and passage.
“This development follows a formal request from Access Bank Plc for the renewal of the Bank Guarantee for Ekiti IPP Limited, reflecting the buyout value for the plant’s third operational year.
“Please recall that the State Government, at its 21st Meeting held on 7th July 2021, approved the development of the 3MW IPP by Messrs. Fenchurch Power Limited. Following that approval, the Ekiti State House of Assembly issued the following directives to support the project:
i. A Bank Guarantee of ₦7,878,705,906.79 for the duration of the Irrevocable Standing Payment Order (ISPO) to Ekiti Independent Power Project Limited;
ii. An Irrevocable Undertaking requiring the State Government to domicile and retain its VAT account with the Bank until the expiration of the facility; and
iii. Annual renewal of the Bank Guarantee on a reducing balance basis.
The renewal of the Bank Guarantee ensures the continuity of this strategic power initiative, reinforcing Ekiti State’s energy infrastructure and supporting the State’s industrial growth and economic development agenda.