Delta State House of Assembly Approves ₦18.1 Billion Bank Guarantee for Asaba Power Project

The Delta State House of Assembly has approved a request from Governor Sheriff Oborevwori for the re‐issuance of an ₦18.1 billion bank guarantee in favour of Bastanchury Power Solutions Nigeria Limited, the developer of the Asaba Independent Power Plant.
The guarantee is being re‐issued via Access Bank Plc (to replace an existing guarantee from Sterling Bank) as part of a deal where Access Bank is teaming with the State Government to manage a composite internally generated revenue (IGR) account.
Governor Oborevwori stated the guarantee covers compensation payments, buy‐out costs and operational obligations under the power plant’s purchase agreement. Additionally, the project will involve a monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million (with a 2.5% annual increment) for capacity, operations and maintenance costs. 
The approval marks a major milestone in advancing the Asaba power infrastructure project, which is expected to strengthen energy supply, boost industrial growth and enhance economic development in Delta State.
For interested stakeholders, the bank guarantee will be renewed annually under the agreed terms, ensuring financial security for the power plant’s commitments.