22 February 2013

Nigeria: 15 Power Firms - IBB, Otedola, Others Get 15 Days to Pay

Fifteen power firms that won the Power Holding Company of Nigeria have been asked to pay 25 percent of the monies within 15 working days.

Some of the firms are backed by former President Ibrahim Babangida, former Head of State General Abdulsalami Abubakar, businessman Emeka Offor and oil mogul Femi Otedola as well as 11 others.

At a ceremony in Abuja yesterday, IBB's North South Company Limited, Abdulsalami's Integrated Energy, Emeka Offor's Interstate, Femi Otedola's Amperion and others buyers formally entered into transaction and industry agreements with the federal government.

The NCP's technical committee chairman Chief Atedo Peterside said the buyers would now be required to pay 25 per cent of share purchase price in 15 (working) days.

Peterside, who was represented by the deputy chairman of NCP's technical committee, Alhaji Haruna Sambo said the buyers would sign 13 legal and industry documents which would be executed as a condition precedent for the closure of the transaction.

The sale of 10 distribution power companies (discos)and five power generation plants (gencos) across the country is expected to net the government N304.25bn by the time it is completed by the middle of this year.

The discos were sold for N197.25bn while the five gencos were sold for 107bn.

Amperion Power Distribution Company Limited with final price of USD$132,000,000 bid for Geregu Power Plc; Mainstream Energy Solutions Limited with an annual fee of USD$50,760,665.18 and a commencement fee of USD$257,000,000 bid for the concession of Kainji Hydro Power Plc; North-South Power Ltd with an annual fee of USD$23,602,484.87 and a commencement fee of USD$111,654,534 bid for the concession of Shiroro Hydro Power Plc; Transcorp/Woodrock/Sumbion/Medea/PSL/Thomassen with a final price of USD$300,000,000 for 100% shares of Ughelli Power Plc and CMEC/EURAFRIC Energy JV Consortium with a final price of USD$201,000,000 is the preferred bidder for the core investor sale of 100% shares of Sapele Power Plc.

The 10 buyers of the Discos are: Kann Consortium (Abuja Disco $164m), Vigeo Power Consortium (Benin $129m), West Power Consortium (Eko $135m), Interstate Eletrics (Enugu $126m), Integrated Energy (Ibadan $169m), NEDC/KEPCO (Ikeja $131m), Aura Energy (Jos $82m) Sahelian Power (Kano $137m), 4power Consortium (Port Harcourt $124m) and Integrated Energy (Yola $59m).

The acting Director General of Bureau of Public Enterprises (BPE), Benjamin Dikki said electricity users must prepare to pay more as tariffs may be jerked up by the new buyers of PHCN. He said that the increase would be for just a little time as "I assure you that the tariffs are bound to fall in the not too distant future."

Also speaking Vice President Namadi Sambo told the buyers that the expectations of Nigerians as regards stable power supply must be achieved. Sambo who was represented by Minister of Power Prof Chinedu Nebo said the firms must ensure that the power companies were turned around for good.

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