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FG to generate $5.7bn from 10 power plants – BPE

By on March 8, 2014

The Federal Government will generate more than $5 billion from the sale of 10 National Integrated Power Plants, an official said.

The Director-General, Bureau of Public Enterprise, Mr Benjamin Dikki, made the disclosure at a news conference on Friday in Abuja after the bidding process by a consortium of investors.

He said that the National Council on Privatisation and the Board of Niger Delta Power Holding Company would soon meet to approve the bid process before the payment.

He said, “25 per cent of the total cost of a plant must be paid within 10 days and the balance paid in six months; of course that will be after the approval of the NCP and the NDPHC board.”

Earlier, the Chairman of the NCP, Mr Atedo Peterside, who supervised the bidding, assured investors of transparency.

Peterside announced the preferred bidder and reserved bidder for each of the 10 power plants according to the highest bids submitted by the investors.

He said the process was done in line with international best practice.

Peterside said ALTEO Consortium was the only company that bid for Alaoji Gence with 902 million dollars to emerge the winner.

He noted that only 80 per cent of shares in each of the power generating companies was up for sale.

The NCP chairman added that government would retain 20 per cent of its share holdings in these companies.

He said, “For Benin Genco, EMA Consortium is the preferred bidder with a bid opening of $580 million, while Index Consortium is the reserved bidder with a $575 million bid.

“Calabar Genco has EMA Consortium as preferred bidder with a bid of 625 million dollars and Nebula Power Generation Consortium as reserved bidder with a $623 million bid.

“ALTEO Consortium emerged as the preferred bidder for Egbema Genco in Imo State with a $392 million bid and Dozzy Integrated Power Ltd as reserved bidder with $415 million bid.’’

Peterside said for Gbarain Genco (Bayelsa), there were six bidders with KDI Energy Resources and Azikel Power Ltd emerging as Preferred and Reserved bidders respectively.

He explained that KDI Energy Resources made a bid of $340 million and Azikel Power Ltd, $305 million to win the bid.

He said, “For Geregu Genco (Kogi) Seoul Electric Power Ltd emerged as preferred bidder with a $690 million bid and Yellow Stone Electric Ltd as a reserve bidder with $613 million bid.

“Daniel Power Consortium emerged the preferred bidder for Ogorode Genco (Delta) with a $531 million bid, while ESOP Power Ltd was the reserved bidder with $510 million bid.

“Olorunsogo (Ogun) Genco initially had five bidders but ALTEO Consortium pulled out and would therefore pay a fine of four million dollars as penalty.

“So for Olorunsogo, we have ENL Consortium as preferred bidder with $751 million bid and Index Consortium emerged the reserved bidder with $730 million bid.’’

Peterside said Shayobe International Ltd Consortium emerged the preferred bidder for Omoku Genco in Rivers with a $318 million bid, while ALTEO Consortium emerged as reserved bidder with a $312.5 million bid.

The NCP boss said Omotosho Genco in Ondo State had the highest number of nine bidders, with Omotosho Electric Power emerging as preferred bidder with a $659 million bid and ENL Consortium as reserved bidder with $645 million bid.

Earlier, the Chairman of the Joint Technical Transaction Committee, Mr Gabriel Suswam, had expressed delight at the successful conduct of the bid.

He said, “All the plants are in good condition, the investors who bid for the plants have done their own due diligence and inspection of the plants before submitting their bids.’’

The Managing Director, NDPHC, Mr James Olotu, said that with the privitisation of the GENCOS, the power situation in the country would improve significantly.

The News Agency of Nigeria reports that 66 companies initially applied to bid for the 80 per cent equity in the 10 power plants, however only 42 companies were approved to take part in the exercise.

The 10 power plant have a combined capacity of 5,034MW.

The plants for sale include Olorunsogo Power Plant (phase 2), Ogorode GENCO, Gbarain Power Plant, Alaoji Power Plant, Benin GENCO, Calabar GENCO and Egbema Power Plant.

Others are the Geregu Power Plant, Omotosho Power Plant and the Omoku power plant.

 

 

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