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FG to privatise 10 NDPHC power plants

By on June 3, 2013

The Federal Government has decided to sell 80 per cent stake in each of the 10 independent power generation plants built by the Niger Delta Power Holding Company.

Plans have also been concluded for a road show in Lagos, United States, United Kingdom and Hong Kong with the aim of attracting investors into the Nigerian power sector.

The NDPHC, which is jointly owned by the three tiers of government, has the mandate to build 10 independent power plants to generate 5,000 megawatts of electricity.

The Managing Director, NDPHC, Mr. James Olootu, said during a press conference in Lagos on Saturday that the privatisation process for the power plants would begin in August this year and would be concluded in 2014.

Olootu stated that the Board of Directors NDPHC headed by Vice-President Namadi Sambo, had recommended the sale of the plants to President Goodluck Jonathan, who approved the recommendation.

He recalled that the power company was in 2005 given a mandate to build 10 independent power plants, adding that the mandate had been achieved, hence the privatisation plan.

Olootu said, “The mandate was to build 10 power plants across the country with capacity to generate 5,000MW by the end of 2013 and divest from them. We are confident to tell you that this year will be a year of harvest in the power sector.

“All the power generating plants will be completed this year. In fact, six plants are ready for inauguration, while four others are about to be completed within the next few months.”

The 10 power plants and their inauguration dates, according to him, include Omotoso, 450MW (June 2013); Sapele, 450MW (August 2013); Geregu, 434MW (July 2013); Olorunsogo, 750MW (September 2013); and Ihovbor, 450MW, whose inauguration date will be determined later.

Others are Gbarain, 225MW; Alaoji, 450MW; Calabar, 561MW; Egbema, 338MW and Omoku, 225MW, which will be inaugurated later.

Olootu further said, “The process that we went through to ensure that we are where we are today is intrinsic. President Goodluck Jonathan has approved the divestment plan and it will be concluded mid next year. Providing stable power supply has been a major priority of this administration and we all know that the power business is best managed by private investors.

“We are divesting 80 per cent stake in each power plant as valued by our financial advisers/valuers. We will retain 20 per cent in order to assure potential investors of our confidence in the plants we are selling.”

He explained that sensitisation would begin on Monday (today) through a road show in Lagos, which will later be extended to UK, US and Hong Kong.

Representative of the financial advisers to the privatisation programme, West African CPCS, Mr. Arif Mohiuddin, assured potential investors that the bidding process would commence in August and the final handing over to the eventual winners would be in June 2014.

He gave an assurance that the bid process would be transparent and that the highest bidders would eventually win the bids.

Benue State Governor, Mr. Gabriel Suswam, had in a recent comment said, “The power companies will be privatised but after a road show is undertaken to make sure the country gets the best form of businesses. A committee will be set up to marshal the entire process of privatisation.”