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FG sells Egbin power plant for $407m

By on March 1, 2013

National Council on Privatisation (NCP) has approved the sale of 70 per cent of Egbin Power Plant in Lagos to a Korean firm, KEPCO, for $407.3 million.

Chairman of the Technical Committee of the NCP, Atedo Peterside, announced this to newsmen in Abuja on Thursday shortly after the Council ended its meeting chaired by Vice-President Namadi Sambo at the Presidential Villa.

Peterside explained that the Geregu Plant is currently valued at over $600 million, more than the $549 million it was valued at in 2007 when the Federal Government began negotiations to sell only 51 per cent equity of the plant to the same firm.

Equally approved for sale as part of the plans to privatise the nation’s power generation are Omotosho (Ondo State) and Olorunsogo (Ogun State) plants to the Chinese firms.

According to Peterside, it made sense to NCP to offer the plants on right of first refusal to the Chinese firms since they would naturally understand the plants better and have agreed to a sale price the Council considered reasonable enough.

The plants were offered for $166 millon, he said, adding that except for Afam Plant, “every other power plant owned by PHCN now has a core investor.”

Akin Akinfetiwa, CEO of Forte Oil, a partner of Amperium Consortium, presented a confirmation of payment of $33 million, including local component of N519.12 million, into NCP account, being 25 per cent down payment for acquiring 51 per cent of Geregu Power Plant.

The firm, owned by businessman, Femi Otedola, was given 15 days grace but it paid the purchase sum immediately after the approval was granted and the meeting ended.

Meanwhile, the NCP deliberated on the report of the progress being made by the Attorney General of the Federation on the issue of arbitration delaying the privatisation of the Ajaokuta Steel Plant and Aluminium Smelter Company of Nigeria (ALSCON).

Minister of Mines and Steel Development, Sani Sada, said the feuding parties had their initial meeting trying to settle out of court and that some useful discussions to take the resolution further are ongoing.

He added: “We are beginning to see that very soon we are likely to conclude some of those issues, such that BPE will take full charge of these two important facilities and are appropriately privatised, not the way it happened before that is now putting us into these issues.

“This time, it will be in such a way that they will come back to contribute the way that they are expected to as major industrial backbone of the Nigerian economy.”

Minister of Communications Technology also announced the NCP’s approval of five draft bills for onward transmission to the Federal Executive Council (FEC) for further approval.

They are on Inland Waterway; Ports; Railways; Road sector; National Transport Commission.

Equally approved was a NIPOST reform bill that will make the postal agency return to its role of regulating the industry and as an operator.

But the two functions will be separated, as a Postal Commission will be created to act as the regulator.

  • Lanre

    Common, Sell it. Lol. These people have totally over run the country

  • Ken

    Everyday you sell and nobody is coming out to claim ownership to commence work for us to have electricity. This the same Peterside that comes to Channel TV during the fuel subsidy crisis, you again has start blabbing again. Bunch of fools