19 July 2012

Nigeria: BPE Receives 25 Proposals for Generation Companies

In keeping with the timeline for the privatisation of the generation companies, the Bureau of Public Enterprises (BPE) yesterday said it has received technical and financial proposals from 25 potential investors interested in the privatisation exercise.

However, three days after the Bureau of Public Enterprises (BPE) opened the bids for the takeover of the successor companies from the unbundling of the Power Holding Company of Nigeria (PHCN), the workers have resisted attempts for the take-over of the Transmission Company of Nigeria (TCN) one of the successor companies, by Canadian-based Manitoba Hydro International limited.

The Minister of Power, Prof. Barth Nnaji, had last week said the federal government would sign a Memorandum of Understanding with Manitoba Hydro for the management of the Transmission Company of Nigeria.

LEADERSHIP however, gathered that the Minister, in company of Manitoba officials was refused entry into the PHCN headquarters in Abuja, where the TCN is housed on Tuesday, by the workers union officials.

When LEADERSHIP visited the PHCN yesterday, heavy presence of security officials was observed, while union officials were spotted in their uniforms, but other workers were seen going about their normal duty.

Speaking with our correspondent, the National Union of Electricity Employees (NUEE), Zonal Organising Secretary for North-Central, Comrade Temple Iworima, explained that they were resisting the take-over of TCN since labour issues were yet to be resolved.

Recall that the revised timeline had given Tuesday (July 17, 2012) as deadline for receipt of technical and financial bids from the potential investors.

According to the BPE, the thermal power generating companies slated for privatisation are: Ughelli Power Plc - situated in Delta area in South-South region of Nigeria with a total installed capacity of 972 MW; Geregu Power Plc- situated in Kogi State in North Central Nigeria with a total installed capacity of 414 MW; Afam Power Plc comprising of Afam I-V power stations located in Rivers State in South-South Nigeria with an installed capacity of 776 MW; and Sapele Power Plc located in Sapele, Delta State in South-South Nigeria with an installed capacity of 1020 MW.

Also, the hydro power generating companies are: Kainji Power Plc comprising Kainji Power Plants and Jebba Power Plants located in Niger and Kwara States respectively in North-Central Nigeria; and Shiroro Power Plc located at the Shiroro Gorge, Niger State in North-Central Nigeria.

The BPE said the next stage of the privatisation exercise is the harvest of the bidders' technical and financial proposals which has July 31, 2012 as deadline for distribution companies.

The transaction timeline reveals that the evaluation of the technical bids will take place between August 14 and 28, 2012.

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