Geregu Power Plans N27 Billion Funds for Gas Turbine Overhaul

Geregu Power, in its recent disclosure within the Unaudited Interim Financial Statements for the period ending on September 30, has unveiled the projected cost of its upcoming significant gas turbine overhaul, estimating it at a substantial N27 billion.

These financial details were officially filed with the Nigerian Exchange Limited, providing insight into the company’s plans for its critical infrastructure.

According to their reports, Geregu Power outlined a financing strategy for this overhaul, stating that 50 percent of the projected costs will be covered by funds generated from their operational activities, while the remaining half will be sourced through debt.

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Furthermore, a noteworthy N4.961 billion is allocated as cash collateral for the Letter of Credit, which has been established to support the impending gas turbine major overhaul. These details signify the company’s proactive approach to securing the necessary resources for this substantial project.

Additionally, Geregu Power’s half-year financial report exposes that the company had already made advance payments amounting to N8.78 billion to Ansaldo Energia, an Italian firm, with the specific purpose of preparing for the gas turbine overhaul. As of December 2022, the total advance payment made to the Italian company had reached N4.616 billion. This demonstrates the company’s commitment to ensuring the timely and effective execution of this major undertaking.

Irom operational revenue and secure the remainder through debt financing, including a cash collateral of N4.961 billion. Additionally, the company had previously advanced N8.78 billion to Ansaldo Energia to prepare for the overhaul, as indicated by the N4.616 billion paid by December 2022. These financial details reflect Geregu Power’s dedication to maintaining and enhancing its critical infrastructure.