ASABA: The Delta State House of Assembly has approved Governor Sheriff Oborevwori’s request for the re-issuance of an ₦18.1 billion bank guarantee from Sterling Bank to Access Bank Plc in favour of Bastanchury Power Solutions Nigeria Limited, the developer of the Asaba Independent Power Plant (IPP).
The approval followed the reading of the governor’s letter during Tuesday’s plenary session by the Speaker, Rt. Hon. Dennis Guwor.
Governor Oborevwori explained that the re-issuance became necessary to facilitate Access Bank’s new partnership with the Delta State Government in managing the state’s composite Internally Generated Revenue (IGR) for improved financial performance and operational efficiency.
According to the governor, the existing IGR account is currently tied to an ₦18 billion bank guarantee previously issued by Sterling Bank on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA).
Under the agreement, the state government has two major obligations:
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The issuance of an ₦18.1 billion Bank Guarantee, renewable annually, to cover compensation payment and buy-out provisions in the PPA.
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A monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, subject to a 2.5% annual increment, to cover capacity, operations, and maintenance costs for the Asaba power infrastructure.
These payments are to be drawn from the state’s composite IGR account domiciled with Access Bank.
Governor Oborevwori noted that the State Executive Council had already approved the new arrangement, authorizing Access Bank to issue a fresh ₦18.1 billion guarantee identical in structure to Sterling Bank’s previous facility.
Upon the issuance of the new guarantee, the one from Sterling Bank will be cancelled to ensure a seamless transition, he explained.
The Leader of the House, Hon. Emeka Nwaobi, moved the motion for approval, seconded by the Deputy Speaker, Hon. Arthur Akpowowo. The motion was adopted unanimously through a voice vote.
The approval represents another major milestone in the ongoing Asaba Independent Power Project, which aims to boost electricity supply in the Delta capital and support industrial growth across the state.
The Asaba IPP is designed to improve power reliability for government facilities, industrial estates, and key urban infrastructure, while reducing the state’s reliance on the national grid.
Governor Oborevwori’s administration has maintained a strong focus on financial reforms and infrastructure development since assuming office.
In August 2025, the governor approved the immediate release of ₦10 billion to settle pension arrears owed to retirees, in addition to the ₦36 billion already disbursed to service pensions since he took office.
The state currently allocates ₦1.4 billion monthly to meet pension obligations.
