BPE receives 54 bids from prospective investors in PHCN distribution companies

The Bureau of Public Enterprises (BPE) on Tuesday said it received technical and financial proposals from 54 potential investors interested in the privatisation of the distribution companies created from the unbundling of the Power Holding Company of Nigeria (PHCN).

The privatisation agency had fixed Tuesday, July 31, 2012 as deadline for the submission of bids from prospective investors in line with the revised timeline for the privatisation of the eleven distribution companies.

The PHCN was unbundled into generation and distribution companies and a single transmission company, to encourage private sector participation, attract foreign and local investment into the country’s power sector and ensure economic and reliable electricity supply.

BPE’s Head, Public Communications, Chukwuma Nwokoh, said at the close of the deadline, two bidders each indicated interest in the Kaduna Electricity Distribution Company Plc; Jos Electricity Distribution Company Plc and Kano Electricity Distribution Company Plc, while three each submitted proposals for Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.

Similarly, four bidders want to invest in the Enugu Electricity Distribution Company Plc; five in Abuja Electricity Distribution Company Plc; while seven bids each were received for Benin Electricity Ibadan Electricity Distribution Company Plc, with nine bidders showing interest in Eko Electricity Distribution Company Plc and ten bidders for Ikeja Electricity Distribution Company Plc.

Part of the conditions stipulated by the BPE, according to Mr.Nwoko, includes that prospective core investors, who must be local and/or international power distributors or investors with power distributors as technical partners, would be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and ensuring customer service in line with government objectives. 

Evaluation of the technical bids, according to the transaction timeline, is scheduled for between August 14 and 28, 2012, while approval of the results by the National Council on Privatisation (NCP) would come latest by September 11, 2012.

September 18, 2012 has been fixed as deadline for the submission of letters of credit by shortlisted bidders for generation companies, while October 2, 2012 is the deadline for shortlisted bidders for distribution companies prior to the opening of financial bids of the shortlisted investors.

“The BPE will on September 25, 2012 open the financial bids of prospective investors for the generating companies, while October 10, 2012 is the date for the opening of the financial bids for the distribution companies,” Mr. Nwoko said. 

“The announcement of the preferred bidders for the generating companies is October 9, 2012, while October 23, 2012 is the date for the announcement of the preferred bidders for the distribution companies.  

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