Wednesday, April 23, 2014

Bidders pay N73.64bn for 11 PHCN successor firms

Published:

The Nigerian government is privatizing the power sector.

The 11 companies that emerged preferred bidders for the 12 Power Holding Company of Nigeria, PHCN, successor companies paid a total of $469.032 million (N73.64billion) ahead of the deadline set by the Bureau of Public Enterprises, BPE.

The preferred bidders were given till Thursday, March 21, 2013, to make the mandatory payment of 25 percent of the value of their bid offers, in line with the stipulated guidelines.

According to the BPE, bidders that made payments on Wednesday include Vigeo Consortium, the preferred bidder for Benin Distribution Company, DISCO which paid $32.25 million (N5.063 billion); Transcorp/Woodrock Consortium, $75 million (N11.78 billion) for Ughelli Power Plc; and CMEC/EUAFRIC Energy JV $50.3 million (N7.90 billion) for Sapele Power Plc.

The others are Kann Consortium, $41 million (N6.44 billion) for Abuja Distribution Company; Aura Energy $20.5 million (N3.22 billion); Mainstream Energy Ltd, $59.5 million (N9.342 billion) for Kainji Power Plc, and Sahelian Power SPV $34.25 million (N5.378 billion) for Kano Distribution Company.

Other bidders that had earlier paid the 25 per cent of their bid value are Amperion Power Company Limited for Geregu Power Plc, $33 million (N5.181 billion); Integrated Energy Distribution & Marketing Company, $42.25 million (N6.633 billion) for Ibadan and $14.75 million (N2.316 billion) for Yola DISCOs; NEDC/KEPCO paid $32.75 million (N5.142 billion) for Ikeja Distribution Company; and West Power & Gas paid $33.75 million (N5.299 million) for Eko Distribution Company.

The Bureau is still expecting payment from 4Power Consortium (Port-Harcourt DISCO); Interstate Electrics Limited (Enugu DISCO); and North-South Power Company (Shiroro Power Plc).

The approval of the preferred bidders by the National Council on Privatisation, NCP, followed the commercial bids opening exercise held on October 23, 2012.

The PHCN was unbundled into generation and distribution companies and a single transmission company as part of the reform programme of the Nigerian electricity industry to encourage private sector participation in the provision of electricity to Nigerians.

The policy was also to help attract foreign and local investments into the Nigerian power sector to ensure reliable electricity supply.

GTBank SME MarketHub campaign