- Post by Admin on sunday, March 05, 2015
Strong indications have emerged that investors who acquired the nation's electricity distribution firms in 2013 are still struggling to service the loans they took from financial institutions to finance the acquisition.
The Federal Government, in its Power Sector Recovery Programme report, noted that a total of $1.42 billion was invested by the investors to acquire 60 per cent stake in the Discos. It said the investors were allowed to borrow up to 70 per cent of the amount, which the government guaranteed through the put-call option in the performance agreement and direct agreement with lenders.
The report stated, "Evidence seems to suggest that the Discos are focused on servicing their acquisition loans rather than investing in metering, transformers, etc. to enhance their operational efficiency and reduce system losses.”