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$1.12 billion for PHCN GENCO Assets, Blacklisted Billionaire Debtor- Otedola among top bidders

By on September 26, 2012

PHCN Assets Valued at Over $30 billion are being sold for less than $2billion

Eight Companies sent in their bids yesterday for the Power Holding Company of Nigeria (PHCN) and just six were announced as having met the criteria set.
Transcorp;  Forte Oil (owned by Otedola); CMEC consortium which includes China Machinery Engineering Corporation, First Bank, and other partners; and Julius Berger were among the companies named as successful bidders, in a bid to end power problems in the country.

The National Council on Privatisation (NCP) made known yesterday, that the companies are located in Geregu, Ughelli, Sapele, Shiroro and Kainji.

The Bureau of Public Enterprises (BPE) named a grouping, which includes Transcorp Nigeria Plc, as the main bidder for the Ughelli Power Plc, with a bid of $300 million.

Amperion Power Distribution Ltd of which Forte oil is a member won with a bid of $132 million for Geregu Power Plant

CMEC Consortium won the bid for Sapele Power Plc with a tender of $201 million.

For the Shiroro Power Plant, North-South Power Company Ltd won the bid, with an offer of $23.6 million with Gen, Babangida as their chief promoter.

The preferred bidder, with an offer of $50.7 million for Kainji was NIGELEC, a company registered in Niger.

The NCP however, informed Amperion Power Distribution Limited again that, the guidelines permits it to win just one generation company.

According to Peterside: “Out of the 23 bids that made it to the evaluation stage, 10 failed the first test of completeness and responsiveness. The remaining 13 bids were then subjected to full technical evaluation. Out of the 13 bids, eight scored the minimum of 75 per cent that was required to progress to the next stage. The bidders that scored 75 per cent and above were asked to submit the post-qualification bidders’ guarantee, following the approval of the evaluation results by NCP”.

“Officials of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) also observed the entire process from bid submission to the conclusion of evaluation. They were, therefore, witnesses to the fact that all late-comers were turned back.”

A total amount of $1.119billion was offered by the companies.

Feniks Electricity Limited, Amperion Power Distribution Company Limited, Transcorp & Woodrock/ Symbion/ Medea/ PSL/ Thomassen for Ughelli; JBN-Nestoil Power Services Limited and CMEC/Eurafric Energy JV for the Sapele plant; Mainstream Energy Solutions Limited for Kainji; for the Geregu plant, Amperion Power Distribution Company Limited was chosen; and North-South Power Company Limited for Shiroro.

The NCP Chairman made it clear that, there is no disagreement of any kind in the sale of the Kainji and Shiroro plants.

“Kainji and Shiroro are hydro assets; you cannot sell River Niger and you can only give a consensus to the people utilising it. So there is no controversy over the issue of hydro plants,” he said.

“My Company will deliver optimum services to Nigerians’’, said Mr Obinna Okudo, Chief Executive Officer of Transcorp.

“We are going to let Nigerians know that a Nigerian company can lead a foremost Nigerian sector (electricity),’’ he said soon after his company was proclaimed as the favourite bidder for Ughelli.

CEO of the bureau of Public Enterpries, Bolanle Onagoruwa, on her part assured bidders, stating that: “We wish to reaffirm that the National Council on Privatisation (NCP) will continue to ensure that electricity sector privatisation transactions are completed to the best of internationally accepted standards.

“We have come so far and achieved so much since mid-2010 when this administration restarted the electricity sector reform programme.

“With your support and with the strong desire to serve our patient and long-suffering citizens of Nigeria, we will continue to strive to achieve even more and ultimately succeed.’’