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Privatisation: FG gets $5.6bn offer for 10 NIPP plants

By on May 12, 2017

The Managing Director, Niger Delta Power Holding Company (NDPHC), Mr Chiedu Ugbo, has said that a $5.6 billion (about N1.76 trillion) sales offer has been made for the 10 National Integrated Power Plants (NIPP) plants built with $4bn (about N1.25trn) investment.

Mr. Ugbo in an exclusive interview with Daily Trust, said the company jointly owned by the three tiers of government has so far spent $8.5bn (about N2.67trn) in critical power infrastructures including gas, generation, transmission and distribution.

He said, “We received offers of about $5.6bn but the cost of developing these projects is about $4bn. For the distribution projects, we have spent one billion to $1.5bn so far. Over $2bn has been spent in transmission. In all, it is in the neighbourhood of $8.5bn and the projects are there for people to see.”

Mr Ugbo, who took over from the pioneer boss, Mr. James Olotu, in June 2016 said he is achieving the mandate given to him to provide power for Nigerians.

He said among the 10 power plants, two were not completed and two others have been partially completed while there are some outstanding projects in the transmission and distribution sections.

For the sales transactions of the plants, he said, “The $5.6bn offer we got from investors is for 80 per cent of the shares of the generation assets alone. It is not for every investment we have made.”

He noted that the privatisation transaction went through a competitive process starting with expression of interest, bid opening and evaluation, and the evaluation of technical and financial proposals.

He said the privatisation would be done in phases starting with four plants that have no gas supply and internal constraints. They are 561mw Calabar NIPP; 500mw Omotosho NIPP, 434mw Geregu, and 450mw Ihovbor NIPP.

“We are also working on ensuring that those not connected to the grid in the rural areas get power in their communities.

“We are doing 20,000 solar home units and the vice president commissioned one of such communities recently. We are receiving consignments for the rest of the communities, which is part of the mandate we have to bring power to Nigerians,” Mr. Ugbo said.

 

[Daily Trust]