This Day (Lagos)

Nigeria: FG to Generate $4.2 Billion From 7 Nipp Power Plants

The Joint Transaction Board comprising the Boards of the National Council on Privatisation (NCP) and the Niger Delta Power Holding Company (NDPHC) friday gave approval to the preferred and reserved bidders of 7 out of the 10 NIPP power plants, owned by the Niger Delta Power Holding Company.

Briefing State House correspondents in Abuja after the meeting, Delta State Governor, Dr. Emmanuel Uduaghan who announced the result of the successful bidder, said the Federal Government would generate an optimal sales value of US$4,253,291,777 from the preferred bidders while the least total sales value from the reserved bidders will stand at $4.089billion

Three Power Plants out of the 10 plants - Alaoji Generation Company, Omoku Generation Company and Gbarain Generation Company - were not successfully bided, as they are being affected by a court case filed by Messrs Ethiope Energy Limited.

Ethiope Energy Limited which was disqualified for failing some aspects of the due diligence process and requirement had bided for the three generating companies but later went to court to challenge its disqualification.

He commended the successful conduct of the financial bid opening, held Monday at the Transcorp Hilton Hotel.

According to Uduaghan, the bidding was adjudged by all stakeholders as transparent, saying Vice President Namadi Sambo directed that the sale of the three plants under litigation should be stepped down until the matter is resolved.

The meeting also approved that notifications be issued to preferred bidders of each of the seven generation companies to summit the required 15% bank guarantees within the following 15 business days.

It also approved the commencement of transaction closure planning meetings following the placement of the required bank guarantees.

While announcing the ratification, Uduaghan said:"The preferred bidder for Benin Generation Company is EMA Consortium with a bid price of $580million; the reserved bidder is Index Consortium which bided for $575million.

"For Calabar Generation Company, EMA Consortium won as the preferred bidder with a bid price of $625million while Nebula Power Generation Consortium followed as the reserved bidder with $623.75million.

"Egbema Generation Company went to Dozzy Integrated Power Limited which offered $415.075million with AITEO Consortium as the reserved bidder offering $392million.

"Seoul Electric Power Limited emerged as preferred bidder for Geregu Generation Company with an offer of $690.20million followed by Yellow Stone Electric Limited with an offer of $613.11million as reserved bidder.

"For the Ogorode Generating Company, Daniel Power Consortium emerged as winner with an offer of $531.77million while ESOP Power Limited follower as reserved bidder with a bid price of $510million.

"ENL Consortium Limited won the bid for Olorunsogo Generating Company with an offer of $751.24million while Index Consortium emerged as reserved bidder with a bid price of $730million.

"Omotosho Generating Company went to Omotosho Electric Power as preferred bidder which offered $659.99million while ENL Consortium Limited was selected a reserved bidder with an offer of $645.15million.

"Optimal sales value for preferred bids in the exercise amounted to $4.253billion while least sales value as reserved bids total $4.089billion."

Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki explained that each of the preferred bidders are expected to make 15 percent bid guarantee payment within 15 working days and 25 percent payment of their respective bid prices within 15 working days.

The balance of the payments is expected to be made within six months.

Uduaghan stressed that all the 10 plants are jointly owned by the three tiers of government. The Federal Government contributes 47 per cent equity stake, while the local and state governments contribute the remaining 53 per cent equity.

According to him, government's intention was to re-invest the entire monies generated from the sale of the 10 generating plants into hydro energy development and improvement of transmission infrastructure in order to improve power supply in the country.

The meeting further approved that the legal actions to vacate the court injunctions in respect of the three other Generation Companies continue with vigour for expeditious dispensation.

Also in attendance at the meeting were the Deputy Governor of Ekiti State, Prof. Modupe Adelabu; the Minister of Power, Prof. Chinedu Nebo; the Supervising Minister of National Planning Commission, Ambassador Bashir Yuguda; Minister of State Power, Mohammed Wakil and the Chairman of the Technical Committee of the NCP, Mr. Atedo Peterside.

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