Friday, April 25, 2014

‘Abubakar’s firm’ emerges tops in bids for four power distribution companies

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The guidelines prevent one company from acquiring more than two distribution companies.

Integrated Energy Distribution & Marketing Limited, reportedly  owned by a former Head of State, Abdulsalami Abubakar, on Tuesday, emerged the preferred bidder for four of the eleven successor companies of the  Power Holding Company of Nigeria, PHCN.

At the formal commercial bids opening ceremony in Abuja, bids submitted by Integrated Energy Limited for four of the eleven companies emerged tops in line with the bid guidelines spelt prior to the commencement of the exercise.

The bid guidelines announced by the National Council on Privatisation, NCP, stipulate that bidders would be ranked based on the aggregate technical, commercial and collection, ATC&9 loss reduction proposals submitted to the BPE along with the technical proposals.

During the bids opening presided over by the Chairman, Technical Committee of the NCP, Atedo Peterside, Integrated Energy Limited posted superior rankings in the bids for four companies.

The company posted 18.58 per cent for Yola power distribution company, where it participated as a sole bidder, while also being in pole position to be selected as winner for Ibadan, Eko and Ikeja distribution companies.

Integrated Energy Limited was ranked 17.46 per cent for Ibadan DISCO above KEPCO/NEDC Consortium, which was ranked 17.14 per cent, and Western Consortium with a 14.37 per cent ranking.

Similarly, the company posted a ranking of 21.43 per cent for Eko DISCO to beat five others to the bid, including KEPCO/NEDC Consortium (20.43 per cent); West Power & Gas Consortium (18.55 per cent);  (16.33 per cent); SEPCO-Pacific Energy Consortium (15.70 per cent), and Oando Consortium (14.29 per cent).

The company’s ranking of 22.41 per cent for Ikeja DISCO surpassed the 20.43 per cent by KEPCO/NEDC Consortium; 19.27 per cent by Vigeo Holdings, Gumco, African Corporation AFC & CESC Consortium; 18.08 per cent by West Power & Gas Consortium; 16.25 per cent by Honeywell Energy Resources International Limited, and 14.29 per cent by Oando Consortium.

However, the bid guidelines forbids a bidder from being declared winner in more than two DISCOS, apart from not being allowed to win both Eko and Ikeja distribution companies.

Should the guidelines be followed strictly, Integrated will only be able to own two of the four distribution companies for which it emerged preferred bidder, and the two cannot be Eko and Ikeja DISCOs.

With the completion of the bid opening, Mr. Peterside said all the bids would be subjected to a post-bid evaluation and consistency test process by the relevant government agencies to ensure that the commercial offers are feasible and consistent with the business plan spelt out in the RTP.

The result of the final evaluation process would be submitted to the NCP for ratification and approval in accordance with the provisions of the RTP.

A total of 16 companies bided for the 11 power distribution firms.

Mr. Peterside said 180 applications were received for the 11 distribution companies at the close of deadline for the submission of expression of interest on March 4, 2011.

Out of the number, he said 80 were short-listed, from which 72 bidders were pre-qualified to submit the request for proposals (RFP).

At the end of the bids submission/evaluation process, 54 proposals were received, out of which the 16 prospective bidders that participated in the bid opening were selected.

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