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No deadline extension for power firm bidders – BPE

By on July 18, 2013

The 14 preferred bidders for the power firms slated for privatisation will not get any extension for the payment of their bid prices except the National Council on Privatisation so directs, the Bureau of Public Enterprises has said.

The Head, Public Communications, BPE, Mr. Chigbo Anichebe, said this in a telephone interview with our correspondent in Abuja on Wednesday.

Anichebe said the September 21 deadline for the payment of the 75 per cent of the bid prices was already known to the bidders as was contained in the Request for Proposal issued to them earlier on.

He also said that arrangements were being concluded by the Federal Government to begin the payment of the terminal benefits of the workers of the Power Holding Companies of Nigeria, the entity from where the successor electricity companies were carved out.

Anichebe expressed confidence that the payment of the workers would begin next week as about 50 per cent of them had returned the verification forms that were issued to them by the government.

Our correspondent learnt that none of the 14 preferred bidders had paid the balance of their bid prices for fear that labour’s disagreement with the government could negatively affect the handover date of the respective companies to the potential core investors.

All the preferred bidders for the PHCN successor companies had met the March 21, 2013 deadline for the payment of the mandatory 25 per cent of the offer value of their bids, and paid $559,445,573.96 to the BPE.

BPE received $31m from 4Power Consortium, being the mandatory 25 per cent of the bid value for the Port Harcourt Distribution Company; $31.5m from Interstate Electrics Limited for Enugu Distribution Company; and $27,913,633.50 from North-South Power Company for Shiroro Power Plc.

Earlier, Vigeo Consortium had paid $32.25m for the Benin Distribution Company; Transcorp/Woodrock Consortium paid $75m for Ughelli Power Plc; and CMEC/EUAFRIC Energy JV paid $50,249,965 for Sapele Power Plc.

Also, Kann Consortium paid $41m for the Abuja Distribution Company; Aura Energy paid $20,464,968.15 for the Jos Distribution Company; Mainstream Energy Limited paid $59,467,500 for Kainji Power Plc; and Sahelian Power SPV paid $34.25m for the Kano Distribution Company.

Other bidders are Amperion Power Company Limited, which paid $33m for Geregu Power Plc; Integrated Energy Distribution & Marketing Company paid $42.25m and $14.75m for the Ibadan and Yola Distribution Companies, respectively; NEDC/KEPCO, paid $32.75m for the Ikeja Distribution Company; and West Power & Gas, which paid $33.75m for the Eko Distribution Company.