Privatisation of PHCN: Peterside announces successful bidders

Another milestone was recorded in the ongoing privatisation in Nigeria’s power on Monday with the announcement of the preferred and reserved bidders for the five generating and eleven distribution companies unbundled from the Power Holding Company of Nigeria (PHCN) by the National Privatisation Council.

Atedo Peterside, Chairman Technical Committee NCP, listed successful bidders of the 11 power generation companies to include Amperion Power Distribution Company Limited with a bid of USD$132,000,000 as the preferred bidder for the core investor sale of 51 per cent shares of Geregu Power Plc; Mainstream Energy Solutions Limited which offered an annual fee of USD$50,760,665.18 and a commencement fee of USD$257,000,000 as the preferred bidder for the concession of Kainji Hydro Power Plc.
Shiroro Hydro Power Plc, went to North-South Power Ltd which offered an annual fee of USD$23,602,484.87 and a commencement fee of USD$111,654,534 as the preferred bidder.

NCP also approved Transcorp/Woodrock/Sumbion/Medea/PSL/ Thomassen with a bid of USD$300,000,000 as the preferred bidder for the core investor sale of 100 per cent shares of Ughelli Power Plc and Amperion Power Distribution Company Limited with a bid of USD$252,000,000 is the reserve bidder for the core investor sale of 100 per cent shares of Ughelli Power Plc.
The other successful investors announced for the generation companies include CMEC/EURAFRIC Energy JV Consortium with a bid of USD$201,000,000 as the preferred bidder for the core investor sale of 100 per cent shares of Sapele Power Plc; JBN-NESTOIL Power Services Ltd with a bid of USD$106,500,000 as the reserve bidder for the core investor sale of 100 per cent shares of Sapele Power Plc; and Amperion as the preferred bidder for Geregu Power Plc.

Also approved by NCP was Feniks Electricity Limited as the reserve bidder for Ughelli Power Plc subject to their bid being revised to match the reserve price.

For the distribution companies in which 60 per cent sales was approved, NCP approved preferred and reserve bidders as follows: Abuja Distribution Company: KANN Consortium Utility Company Ltd as preferred bidder; Benin Distribution Company: Vigeo Power Consortium as the preferred bidder; Eko Distribution Company: West Power & Gas as the preferred bidder; Honeywell was approved as the reserve bidder; Enugu Distribution Company: Interstate Electrics Ltd as the preferred bidder; Eastern Electric Nigeria Ltd was approved as the reserve bidder; Ibadan Distribution Company: Integrated Energy Distribution & Marketing Ltd as the preferred bidder; NEDC/KEPCO was approved as the reserve bidder; Ikeja Distribution Company: New Electricity Distribution Company (NEDC)/KEPCO as the preferred bidder; Vigeo Power Consortium was approved as the reserve bidder; Jos Distribution Company: Aura Energy Ltd as the preferred bidder Kano Distribution Company: Sahelian Power SPV Ltd as the preferred bidder; Port Harcourt Distribution Company: 4Power Consortium as the preferred bidder; Yola Distribution Company: Integrated Energy Distribution & Marketing Ltd as the preferred bidder.

“After the approval of the results of the financial bids by Council, the highest ranked bidder for each Generation or Distribution Company will be required to post an additional bid security (“Preferred Bidder’s Bank Guarantee”) in the form of a Letter of Credit or Bank Guarantee for fifteen percent (15 per cent) of the transaction value within fifteen (15) business days of notification from the Bureau of Public Enterprises. The Preferred Bidder’s Bank Guarantee shall be from a Standard & Poor (S&P) or Moody & Fitch “A” rated foreign bank with a correspondent bank in Nigeria or a Nigerian bank rated “A” by a Rating Agency approved by SEC and be valid through twenty-one (21), calendar days after the stipulated proposal validity period or any extended proposal validity period”, Peterside said while briefing journalists at the end of the NCP meeting presided over by Vice President Namadi Sambo.

“The designated Preferred Bidder will be invited for negotiations with BPE. Within fifteen (15) Business Days after signing of the Sale and Purchase Agreement, the Shareholders’ Agreement or the Performance Agreement ‘whichever is earlier, or at a mutually agreed earlier time, the Bidder shall make a down payment of twenty-five percent (25%) of the share purchase price. ”Within six (6) months after signing of the Sale and Purchase Agreement or the Shareholders’ Agreement, whichever is earlier or mutually agreed upon time, the Bidder will be required to pay the outstanding seventy five per cent (75%) of the share purchase price to complete the transaction. ”Upon receipt of payment, the Preferred Bidder’s Bank Guarantee will be returned to the bidder within a maximum of four (4) weeks”. The companies will be handed over to the successful bidders after the completion of payment and the handover of the successor company will conclude the transaction.

Source: PM News