27 November 2012

Nigeria: Power Sector Reforms - Bid Winners Begin Payment

Chairman of the Nigeria Electricity Regulatory Council (NERC), Dr. Sam Amadi, has disclosed that many of the preferred bidders for the various facilities of the Power Holding of Nigeria (PHCN) have begun payment for their respective financial bids.

Also, Amadi hinted that some South Korean conglomerates have signified their intentions to invest in the country's power sector, saying a sum of $30billion is expected to be brought into the sector with a view to generating over 10,000 megawatts into the national grid.

Speaking at an award ceremony organised by a non-governmental organiaation, Light Up Nigeria, in Lagos recently, Amadi said most of the successful bidders had paid at least half of the bid price. According to him, the new owners of PHCN that bought infrastructure in the generation and transmission chains have been striving to meet up with terms of the sales agreement.

"Everything is moving on well with the power sector reforms. I am happy to inform you that most of the preferred bidders who won most of the companies that were recently sold out have started paying up. Many of them have paid up to 50 per cent of the sum contained in their bid," Amadi told the audience.

Amadi further expressed optimism that the country was on its way to attaining self-sufficiency in electricity supply by the year 2017 owing to the quantum of the expected investment inflow into the country due to the liberalisation of the sector.

"The good news is that we are on reforms that will ensure steady power supply. If the reforms go as planned, the nation could achieve a hub by 2017," he said, maintaining that the country needed private partnership for steady supply.

On the envisaged investment flow from South Korea, Amadi said, "We are happy that the current economic reforms are bearing fruits. Nigeria has become very attractive to international businessmen who have indicated their willingness to invest heavily in the power sector. I am happy to tell you all that a conglomerate from South Korea is bringing the sum of $30 billion into the sector."

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