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Stakeholders Troubled over the Fate of Privatized PHCN Firms

By on October 18, 2012

National Council of Privatization members

Troubled Stakeholders have called on the Bureau of Public Enterprises (BPE) and the National Council on Privatisation (NCP) to make sure that bidders who came out as winners of the privatisation process in the power sector are fit to deliver electricity to Nigerians.

The stakeholders stressed that, emerging as winners is not enough, what is needed is the capability to deliver nonstop power supply to Nigerians because we have been through a lot, they said.

 

According to a mogul whose company was not selected in the bid process said, “We are sure that any credible bidder will be pleased to present its plans on how it intends to achieve the promise it has made in its proposals. This is very important. What Nigerians want is available power on a consistent basis, not unachievable plans designed only to win competitive bids that result in no change,”

 

“It is also important that the Nigeria Electricity Regulatory Commission (NERC) discharges its statutory duties to ensure that the distribution companies are financeable and financially stable on a sustainable basis,” he added.

 

“As was indicated by the Chairman of the NCP Technical Sub-committee, this is not the end of the process. Commercial offers of bidder must be feasible based on the Technical Proposal submitted. This must ensure that the bidders are being consistent and that they can deliver their proposals,” another stakeholder said.

 

The way to decide this is by looking at the history of firms that submitted bids and not essentially the figures referenced by them, he added.

The Stakeholders also urged the Federal Government and BPE to make sure that the winners’ business plans are trustworthy and feasible, so that financiers and lenders would commit their capital to the Distribution Companies (DisCos) without fear.

 

 

They further cautioned that, it will be messy and Nigerians will be very sad if the new owners fail to deliver after lots of hope and expectations. They however, lauded the transparent and professional way the exercise was carried out, saying the development has stirred confidence in investors and the public as well.

 

The Kaduna Electricity Distribution Company could not be sold because it could not get a competent bidder. However, Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kano, Port Harcourt, and Yola were the 10 electricity distribution companies sold.

 

According to the Chairman, Technical Committee, National Council on Privatization (NCP), Mr. Atedo Peterside, Sahelian Power 4Power Consortium, Integrated Energy Distribution & Marketing Limited SPV Limited, and Aura Energy Limited were the companies selected for the four Discos with single bidders.

 

Companies with the utmost proportion ATC&C losses reduction will come out favoured bidders, unless indicated otherwise.

 

If this were to happen, Gbolade Osibodu’s Vigeo Power Consortium could seal Benin Distribution Company, Integrated Energy Distribution & Marketing Limited will surface as the favourite bidder for four distribution companies – Eko, Ibadan, Ikeja, and Yola. On the other hand, Emeka Ofor’s Interstate Electrics Limited will eventually become the buyer of Enugu and Abuja Electricity Distribution Company.

One Comment

  1. Joseph Amokwe

    October 19, 2012 at 9:45 am

    The government should do a kind of test-run before giving a wholistic approval to the successful companies.