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Indian Firm to Partner with Buyers of PHCN Coys

By on April 12, 2011

Calcutta Electric Supply Corporation (CESC) Limited, an Indian energy company,  has said it was in talks with several companies to jointly pick stakes inthe electricity distribution companies created out of the Power Holding Company of Nigeria (PHCN), slated for privatisation.

 

Managing Director of the Company, Mr.  Sumantra Banerjee,  however,  explained that the company was not interested in buying stakes in any of the PHCN successor companies as a separate entity,  but intended to be the technical partner for the consortium that may buy majority stake in those companies.

 

“A couple of Nigerian power sector companies are up for divestment. We are in talks with some interested acquirers to form a consortium. Our involvement will be limited to providing technical expertise in running these power distribution companies. We may also end up taking small stakes in these companies,” he said.

 

Banerjee said already, a few companies have approached CESC to join them as a technology and support provider to run and manage a power unit or distribution company,” adding that “If the consortium buys stake, it will mark CESC foray into the power sector overseas”.

 

CESC Limited brought thermal power to India more than 100 years ago and supplies power to the city of Calcutta, serving 11 million population across its licensed area, spread over 567 square kilometre .

A total of 331 applications were received by the Bureau of Public Enterprise from potential buyers of the PHCN successor companies during the expressions of interest (EOIs), which ended on March 4, 2011.

 

Indian Energy giant,  Essar Group and ContourGlobal of United States of America were among Engineering firms and utilities companies from around the world that have expressed interest in the companies  put up for sale in line with the planned privatisation of power sector.

 

The BPE had confirmed that 174 applications were received from prospective investors/concessionaires interested in acquiring the four thermal stations and the two hydro stations, 157 applications were harvested from prospective investors interested in acquiring the 11 distribution companies.

 

The core investor sales to be carried out through international competitive bidding will cover the eleven electricity distribution companies in the country.

 

They are Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Eko Electricity Distribution Company Plc; Ibadan Electricity Distribution Company Plc; and Ikeja Electricity Distribution Company Plc. Others are Jos Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.

 

Power Grid Corporation of India Ltd (PGCIL), one the three companies shortlisted by the BPE for the management of the Transmission Company of Nigeria (TCN) confirmed recently that it had submitted a revised offer for the management of Nigeria’s electricity grid to be constructed at a cost of $3.5 billion.

 

The power reformroadmap provides that electricity generation and distribution would be privatised, while the Federal Government will continue to own the national grid but its management would be privatised.

source : Thisday