The preferred bidders will take over the successor companies after completion of payment.
The National Council on Privatisation, NCP, on Monday in Abuja approved preferred bidders for PHCN Successor Generating Companies, GENCOs, and Successor Distribution Companies, DISCOs.
Addressing State House correspondents on the outcome of the sixth meeting of the NCP, which was presided over by Vice President Namadi Sambo, a member of the Council, Atedo Peterside, said the approval followed the council’s deliberation on the outcome of the financial bid opening for the companies.
He said that Amperion Power Distribution Company Limited with a bid of 132 million dollars is the preferred bidder for the core investor sale of 51 per cent shares of Geregu Power Plc.
Mr. Peterside said that the Mainstream Energy Solutions Ltd, which offered an annual fee of 50.76 million dollars and a commencement fee of 257 million dollars, was the preferred bidder for the concession of Kainji Hydro Power Plc.
“NCP approved that North-South Power Ltd which offered an annual fee of 23.60 million dollars and a commencement fee of 111.65 million dollars is the preferred bidder for the concession of Shiroro Hydro Power Plc.
“The privatisation body also approved that Transcorp/Woodrock/Sumbion/
According to him, the council also approved that Amperion Power Distribution Company Ltd with a bid of 252 million dollars is the reserve bidder for the core investor sale of 100 per cent shares of Ughelli Power Plc.
Similarly, CMEC/EURAFRIC Energy JV Consortium with a bid of 201 million dollars is the preferred bidder for the core investor sale of 100 per cent shares of Sapele Power Plc.
Mr. Peterside said the council approved JBN-NESTOIL Power Services Ltd with a bid of 106.50 million dollars as the reserve bidder for the core investor sale of 100 per cent shares of Sapele Power Plc.
“Given that Amperion is the preferred bidder for Geregu Power Plc, NCP also approved that Feniks Electricity Limited would be the reserve bidder for Ughelli Power Plc subject to their bid being revised to match the reserve price,” he said.
On the sale of 60 per cent shares of DISCOs, Mr. Peterside said the NCP approved KANN Consortium Utility Company Ltd as preferred bidder for the Abuja Distribution Company.
He said Vigeo Power Consortium and West Power and Gas were approved as the preferred bidders for Benin Distribution Company and Eko Distribution Company, while Honeywell was approved as the reserve bidder for Eko Distribution Company.
Mr. Peterside said that Interstate Electrics Ltd was approved by the council as the preferred bidder for Enugu Distribution Company, while the Easterm Electirc Nigeria Ltd was approved as the reserve bidder.
He said the Ibadan Distribution Company was won by Integrated Energy Distribution & Marketing Ltd, while the NEDC/KEPCO was approved as the reserve bidder.
Mr. Peterside revealed that the New Electricity Distribution Company (NEDC)/KEPCO emerged as the preferred bidder for Ikeja Distribution Company.
He said Vigeo Power Consortium was approved as the reserve bidder for the Ikeja Distribution Company.
Mr. Peterside said that Aura Energy Ltd and Sahelian Power SPV Ltd emerged as the preferred bidders for Jos Distribution Company and Kano Distribution Company respectively.
For the Port Harcourt Distribution Company, he said that 4Power Consortium was approved by the Council as the preferred bidder, while Integrated Energy Distribution and Marketing Ltd emerged as the preferred bidder for Yola Distribution Company.
Also the NCP disqualified Southern Electricity Distribution Company for submitting multiple bids for Benin Disco.
Mr. Peterside said the NCP approved the next steps for the conclusion of the privatisation of the generation and distribution companies as follows:
He said that after the approval of the results of the financial bids by council, the highest ranked bidder for each Generation or Distribution Company would be required to post an additional bid security.
“Preferred Bidder’s Bank Guarantee” was in the form of a Letter of Credit or Bank Guarantee for 15 per cent of the transaction value within 15 business days of notification from the Bureau of Public Enterprises.
“The Preferred Bidder’s Bank Guarantee shall be from a Standard & Poor (S&P) or Moody & Fitch “A” rated foreign bank with a correspondent bank in Nigeria or a Nigerian bank rated “A” by a Rating Agency approved by SEC and be valid through 21, calendar days after the stipulated proposal validity period or any extended proposal validity period.
“The designated Preferred Bidder will be invited for negotiations with BPE.
“Within 15 Business Days after signing of the Sale and Purchase Agreement, the Shareholders’ Agreement or the Performance Agreement ‘whichever is earlier, or at a mutually agreed earlier time, the Bidder shall make a down payment of 25 per cent of the share purchase price.
“Within six months after signing of the Sale and Purchase Agreement or the Shareholders’ Agreement, whichever is earlier or mutually agreed upon time, the Bidder will be required to pay the outstanding 75 per cent of the share purchase price to complete the transaction.
“Upon receipt of payment, the Preferred Bidder’s Bank Guarantee will be returned to the bidder within a maximum of four weeks.
According to Mr. Peterside, after the completion of payment, the handover of the successor company to the Preferred Bidder would mark the conclusion of the transaction.