FG takes over Yola Disco from private investors


Following the declaration of force majeure by Integrated Energy Distribution and Marketing Company, the core investor in the Yola Electricity Distribution Company, the Federal Government has taken over the beleaguered power firm.
Consequently, the Federal Ministry of Power has taken over the management and control of the electricity distribution company.
It has also appointed Baba Mustapha, an engineer, to lead the company in the capacity of an acting managing director. Before his new appointment, Mustapha was a deputy director in the Ministry of Power.
Integrated Energy Distribution and Marketing Company had on six occasions (November 10, 2013, August 27, 2014, October 15, 2014, April 9, 2015, April 30, 2015 and May 13, 2015) given notices of force majeure, which is an irresistible force or compulsion such as will excuse a party from performing his or her part of a contract.
Consequently, the matter was tabled before the sub-committee of the Technical Committee on Power of the National Council on Privatisation at one of its meetings.
The sub-committee recognised the reality of the force majeure, which was in line with clause seven of the Share Purchase Agreement and made recommendations to the technical committee.
The force majeure clause is a standard clause in most contracts and includes events like natural disasters, wars and other occurrences not within the power or control of the executing party that makes implementation of the contract impossible.
Clause seven of the SPA stated that in a war situation, where the core investor could not operate, it could invoke force majeure on issues beyond its control.
The Yola Electricity Distribution Company covers Adamawa, Borno, Taraba and Yobe states. Except for Taraba State, the other three have been mostly affected by the activities of the Islamic insurgent group, the Boko Haram, and the subsequent war against it.
The recommendations of the sub-committee were deliberated upon by the …Read More

Source:: New Mail