Power Privatization: 20 firms jostle for 10 NIPPs

  • …FG to generate over $5bn from sale

By Etuka Sunday

At the 20 consortiums weekend passed through Federal Government’s financial bidding process for the 10 independent integrated power plants (NIPPs).

Some of the firms are: ALTEO Consortium, Dozzy Integrated Power Ltd, KDI Energy Resources, Azikel Power Ltd, Seoul Electric Power Ltd, Yellow Stone Electric Ltd, Daniel Power Consortium, ESOP Power Ltd, ENL Consortium, Index Consortium, Shayobe International Ltd Consortium, Omotosho Electric Power.

Mr Benjamin Dikki, the Director General, Bureau of Public Enterprises (BPE) made the disclosure in an interview on Friday in Abuja after the bidding process by a consortium of investors.

He said the National Council on privatization (NCP) and the Board of Niger Delta Power Holding Company (NDPHC) would soon meet to approve the bid process before the payment.

He added that “25 per cent of the total cost of a plant must be paid within 10 days and the balance paid in six months; of course that will be after the approval of the NCP and the NDPHC board.”

Earlier, Mr Atedo Peterside, the Chairman of NCP, who supervised the bidding, assured investors of transparency.

Peterside announced the preferred bidder and reserved bidder for each of the 10 power plants according to the highest bids submitted by the investors.

He said the process was done in line with international best practice.

Peterside said ALTEO Consortium was the only company that bid for Alaoji Gence with 902 million dollars to emerge the winner.

He noted that only 80 per cent of shares in each of the power generating companies was up for sale.

The NCP chairman added that government would retain 20 per cent of its share holdings in these companies.

He said “for Benin Genco, EMA Consortium is the preferred bidder with a bid opening of 580 million U.S. dollars, while Index Consortium is the reserved bidder with a 575-million-dollar bid.

“Calabar Genco has EMA Consortium as preferred bidder with a bid of 625 million dollars and Nebula Power Generation Consortium as reserved bidder with a 623-million-dollar bid.

Earlier, the Chairman of the Joint Technical Transaction Committee, Mr Gabriel Suswam, had expressed delight at the successful conduct of the bid.

He said “all the plants are in good condition, the investors who bid for the plants have done their own due diligence and inspection of the plants before submitting their bids.’’

Mr James Olotu, the Managing Director, NDPHC, said that with the privitisation of the GENCOS, the power situation in the country would improve significantly.

The 10 power plant have a combined capacity of 5,034MW.

The plants for sale include Olorunsogo Power Plant (phase 2), Ogorode GENCO, Gbarain Power Plant, Alaoji Power Plant, Benin GENCO, Calabar GENCO and Egbema Power Plant.

Others are the Geregu Power Plant, Omotosho Power Plant and the Omoku power plant.

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