21 February 2013

Nigeria: Power Privatisation - FG Signs Agreements With Bid Winners

To sustain investors' confidence in the transformation agenda of President Goodluck Jonathan, the Federal Government said it will sign most of the agreements with the bid winners of Power Holding Company of Nigeria, PHCN, successor companies today.

The contracts include those for generation, Gencos and distribution, Discos companies, for which bank guarantees were recently verified by Bureau of Public Enterprises, BPE, which handled the privatisation exercises.

The newly appointed Minister of Power, Prof. Chinedu Nebo, disclosed this on the sidelines of the on-going Nigerian Oil and Gas, NOG Conference, in Abuja, yesterday.

He said: "Hopefully, by Thursday, most of the contracts will be signed in a very significant function. Agreements with most of the companies that won the bid to purchase the Gencos and Discos will be signed."

The minister reassured investors that government will ensure that all outstanding debts owed by its ministries, departments, and agencies, MDAs will be settled by mid-year.

He added, "We will also ensure that regulatory agencies, market operators, system operators and MDAs are consistently delivering on their respective mandates and to ensure that payments are made as at when due.

"It has always been a problem that many of the government agencies are owing billions of naira. This is not going to continue as the privatisation enters its concluing phase."

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