Nigeria earns N24.6bn from sale of 5 PHCN successor companies

The amount is from the payment of the mandatory 25 per cent of the bid value offered by five of the preferred bidders.

The Federal Government has so far realised about $156.50 million (N24.6billion) from the sale of five of the 11 Power Holding Company of Nigeria, PHCN, successor companies.

The amount is from the payment of the mandatory 25 per cent of the bid value offered by five of the companies that emerged preferred bidders during a recent commercial bidding exercise organised by the Bureau of Public Enterprises, BPE.

The BPE said in a statement on Monday that Amperion Power Company Limited, which emerged the preferred bidder for Geregu Power Plc, paid $33 million (about N5.18billion), while Integrated Energy Distribution & Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies paid $42.25million (about N6.63billion) and $14.75million (about N2.316billion) for Ibadan and Yola distribution companies (DISCOs) respectively.

Similarly, NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company, paid $32.75 million (about N5.142billion), and West Power & Gas, the preferred bidder for Eko Distribution Company, paid $33.75 million (about N5.299billion).

The BPE said the payments were coming ahead of the Thursday, March 21, 2013 deadline for all the bidders to make the mandatory 25 per cent payment in line with the Share Purchase Agreement, SPA, they signed for the various transactions.

Other bidders for the PHCN Successor Companies are 4Power Consortium for Port-Harcourt DISCO; Aura Energy Limited – Jos DISCO; Interstate Electrics Limited – Enugu DISCO; KANN Consortium Utility Company Limited – Abuja DISCO; Sahelian Power SPV Limited – Kano DISCO, Vigeo Consortium – Benin Disco; Transcorp Consortium – Ughelli Power Plc; CMEC/EUAFRIC Energy JV – Sapele Power Plc; Mainstream Energy Solutions Limited – Kainji Power Plc and; North-South Power Company – Shiroro Power Plc.

The final approval of the preferred bidders by National Council on Privatisation, NCP and its announcement for the successor companies was done on October 23, 2012.

The sale of the companies followed the on-going reform programme in the power sector initiated by the Federal Government which culminated in the successful un-bundling of PHCN into a single transmission company and several generation and distribution companies. The reform is aimed at encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.

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