Five bidders have so far paid a total of $156.50 million to the Federal Government being the mandatory 25 per cent of the bid value of the PHCN Successor Companies they have indicated interest to acquire.
A statement from the Bureau for Public Enterprises (BPE) indicated that Amperion Power Company Limited, the preferred bidder for Geregu Power Plc has paid $33 million, Integrated Energy Distribution
& Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies paid $42.25
million and USD$14.75 million for Ibadan and Yola Discos respectively, NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company, $ 32.75 million; and West Power & Gas, the preferred bidder for Eko Distribution Company $33.75 million.
This is coming ahead of the Thursday, March 21, 2013, deadline for all the bidders to make the mandatory 25 per cent payment in line with the Share Purchase Agreement for the transactions.
Other bidders for the PHCN Successor Companies are 4Power Consortium (Port-Harcourt Disco); Aura Energy Limited (Jos Disco); Interstate Electrics Limited (Enugu Disco); KANN Consortium Utility Company Limited (Abuja Disco), Sahelian Power SPV Limited (Kano Disco), Vigeo Consortium(Benin Disco); Transcorp Consortium (Ughelli Power Plc); CMEC/EUAFRIC Energy JV (Sapele Power Plc); Mainstream Energy Solutions Limited (Kainji Power Plc); and North-South Power Company (Shiroro Power Plc).
As at the expiration of the deadline last Thursday, only four bidders were able to secure the finance to them make down payment of 25 per cent for the firms they won.
As a result, the National Council on Privatisation (NCP) had extended the deadline for payment of the 25 per cent to from March 14 to March 21, 2013, to allow more investors secure finances from banks.
The 15 core investors who signed transaction and industry agreements with the Federal Government on February 21, 2013 were expected to make 25 per cent initial payment for the power companies they won within 15 working days after the signing of the agreement while the remaining 75 per cent would be paid within 90 days after the initial payment to complete the transaction.
The final approval of the preferred bidders by NCP and its announcement for the successor companies was done on October 23, 2012.
The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.