Daily Trust (Abuja)

30 October 2012

Nigeria: FG Approves Sale of Power Firms - Buyers Get Six Months to Pay

Consortiums backed by former head of state Abdulsalami Abubakar and businessman Emeka Offor yesterday lost the ground they gained earlier in their bids to buy six power distribution companies.

The National Council on Privatisation yesterday announced final winners of the bids for the power plants and distribution companies (discos), showing that Abdulsalami's Integrated Energy, which earlier emerged lead bidder for four discos, is now invited to pay for two only--Yola and Ibadan.

NCP rules said a bidder would not be allowed to take two companies in the same zone, and Ibadan, Eko and Ikeja bid by Integrated are all in the same zone.

Integrated lost Eko disco to West Power and Gas Limited, and lost Ikeja disco to New Electricity Distribution Company (NEDC)/KEPCO.

Also, Interstate led by Offor was approved as the preferred bidder of the Enugu disco but was not allowed to take Abuja disco for which the company earlier emerged lead bidder.

Kann Consortium is now the preferred bidder of the Abuja disco.

No reasons were announced yesterday for the failure of Interstate to keep the Abuja disco but a newspaper report said the company failed NCP's 'consistency' test.

The NCP also yesterday announced Sahelian, Aura, 4power and Vigeo as winners of the bids for Kano, Jos, Port Harcourt and Benin discos respectively.

Vigeo is facing opposition from four state governors--of Edo, Ekiti, Ondo and Delta--who are promoting the Southern Electricity Distribution Company for the Benin disco.

NCP yesterday said Southern Electricity was disqualified for submitting multiple bids.

But all the companies that emerged as the preferred bidders for the Gencos were approved by NCP yesterday.

In a statement in Abuja, the council said it approved that Amperion Power Distribution Company Limited with a bid of USD$132,000,000 is the preferred bidder for the core investor sale of 51% shares of Geregu Power Plc.

Mainstream Energy Solutions Limited which offered an annual fee of USD$50,760,665.18 and a commencement fee of USD$257,000,000 is the preferred bidder for the concession of Kainji Hydro Power Plc.

NCP also approved that North-South Power Ltd which offered an annual fee of USD$23,602,484.87 and a commencement fee of USD$111,654,534 is the preferred bidder for the concession of Shiroro Hydro Power Plc.

Transcorp/Woodrock/Sumbion/Medea/PSL/Thomassen with a bid of USD$300,000,000 is the preferred bidder for the core investor sale of 100% shares of Ughelli Power Plc. Former United Bank for Africa's Managing Director, Tony Elumelu, is one of the promoters of this consortium.

"NCP also approved that Amperion Power Distribution Company Limited with a bid of USD$252,000,000 is the reserve bidder for the core investor sale of 100% shares of Ughelli Power Plc;

"NCP approved that CMEC/EURAFRIC Energy JV Consortium with a bid of USD$201,000,000 is the preferred bidder for the core investor sale of 100% shares of Sapele Power Plc;

"NCP approved that JBN-NESTOIL Power Services Ltd with a bid of USD$106,500,000 is the reserve bidder for the core investor sale of 100% shares of Sapele Power Plc; and

"Given that Amperion is the preferred bidder for Geregu Power Plc, NCP also approved that Feniks Electricity Limited would be the reserve bidder for Ughelli Power Plc subject to their bid being revised to match the reserve price," the statement said.

The next steps after yesterday's announcement are payments, signing of agreements and transfer of the power companies to the new owners.

"Within six months after signing of the Sale and Purchase Agreement or the Shareholders' Agreement, whichever is earlier or mutually agreed upon time, the bidder will be required to pay the outstanding seventy five per cent (75%) of the share purchase price to complete the transaction. Upon receipt of payment, the Preferred Bidder's Bank Guarantee will be returned to the bidder within a maximum of four weeks.

"After the completion of payment, the handover of the successor company to the preferred bidder will conclude the transaction".

Ads by Google

Copyright © 2012 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.