FG reported plan to hand over the PHCN companies in two weeks unrealistic
The Bureau of Public Enterprises, BPE, plans to formally hand over the 18 Power Holding Company of Nigeria, PHCN, successor companies to their core investors by the second quarter of 2013.
They consist 11 power generation, six distribution and one transmission subsidiaries. The generation companies include Afam Power Plc, Egbin Power Plc, Kainji Hydro Electric Plc, Sapele Power Plc, Shiroro Hydro Electric Plc, and Ughelli Power Plc.
The distribution companies include Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Eko Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Ikeja Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc, while the transmission company is Transmission Company Of Nigeria
A top BPE official, who gave a hint of the handing over to the News Agency of Nigeria, NAN in Lagos on Saturday on condition of anonymity, attributed the slow pace of the bidding process for some of the power stations in the country to the cumbersome privatisation process.
He said that the distribution company in Kaduna and the generation company in Afam in Rivers were exempted from the exercise, because no preferred bidder emerged for them during the last bidding exercise.
He said an agreement had been executed by the government and the Nigerian Labour Congress to guarantee the cooperation of workers in the handover process.
It was gathered that government was working to raise the necessary finance to pay off the entitlements of the former PHCN workers, adding that the BPE was collaborating with the Ministry of Lands and Housing to resolve land and property titles.
“Am sure that by second quarter of this year, government will officially hand over PHCN to the core investors,’’ the official said, denying insinuation that the Federal Government would in the next two weeks handover the PHCN successor power generation and distribution companies to the core investors.
He said that handing over of PHCN to core investors within the next two weeks was not realistic since government had just cleared all the preferred bidders for the PHCN successor generation and distribution companies to enter the final stage of negotiation on the sale of the electricity firms.
Last November, the BPE had announced the receipt of $335 million from the bidders for both the generation and distribution firms.
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