News
PHCN
Sale: NCP still Shops for EOIs, Extends Deadline
The National
Council on Privatisation (NCP) has directed the Bureau of
Privatissation (BPE), to extend the deadline for submission of
expressions of interest (EOIs) for the successor companies,
created out of the Power Holding Company of Nigeria (PHCN), to
Friday, March 4, 2011.
Vice President
Mohammed Namadi Sambo who is also the chairman of the NCP had
asked the privatization agency to extend the deadline, which is
Friday 18, 2011 to March 4, 2011, to enable prospective
investors, mainly the serious ones, who may have missed the
deadline due to some valid reasons. Besides, investigations by
Watchdogreporters indicate that responses to the EOIs are
discouraging, hence the need for the extension.
A statement from
the secretariat of the NCP on Thursday, signed by Chukwuma Nwoko,
spokesman for the agency, confirmed the some investors did asked
for time to put their documents in order.
The Bureau of
Public Enterprises had just concluded a five-city Electric Power
Investors’ Forum which was to court world class investors to
participate in the privatization of the successor companies. The
Forum held in Lagos (January 18, 2011); Dubai (January 24);
London (January 27); New York (February 1); and Johannesburg
(February 10.)
“Recall
that the BPE had between December 13 and 20, 2010, published
adverts in local and foreign media inviting prospective core
investors to express interest in the eleven distribution
companies unbundled from the Power Holding Company of Nigeria (PHCN.)
The BPE also invited prospective core investors to express
interest in the four thermal power stations and as
concessionaires for the two hydro power stations. The initial
deadline for receipt of EOIs was Friday, February 18, 2011.
“The core investor sales to be
carried out through international competitive bidding will cover
the eleven Electricity Distribution Companies in the country.
They are Abuja Electricity Distribution Company Plc; Benin
Electricity Distribution Company Plc; Enugu Electricity
Distribution Company Plc; Eko Electricity Distribution Company
Plc; Ibadan Electricity Distribution Company Plc; and Ikeja
Electricity Distribution Company Plc. Others are Jos Electricity
Distribution Company Plc; Kaduna Electricity Distribution
Company Plc; Kano Electricity Distribution Company Plc; Port
Harcourt Electricity Distribution Company Plc; and Yola
Electricity Distribution Company Plc”, according to Nwoko.
The privatization of thermal
and hydro power stations, which will also be carried out through
international competitive bidding, will cover the following
companies:
Thermal Power
Generating Companies:
(1)Ughelli Power Plc – situated
in Delta area in South-South region of Nigeria with a total
installed capacity of 972 MW;
(2)Geregu Power Plc- situated in
Kogi State in North Central Nigeria with a total installed
capacity of 414 MW;
(3)Afam Power Plc comprising of
Afam I-V power stations located in Rivers State in South-South
Nigeria with an installed capacity of 776 MW; and
(4)Sapele Power Plc located in
Sapele, Delta State in South-South Nigeria with an installed
capacity of 1020 MW.
Hydro Power Generating
Companies:
(1)Kainji Power Plc comprising
Kainji Power Plants and Jebba Power Plants located in Niger and
Kwara States respectively in North-Central Nigeria; and; Shiroro
Power Plc located at the Shiroro Gorge, Niger State in
North-Central Nigeria.
Potential bidders should be
existing power distribution companies or core investor groups
with power distribution companies as long-term technical
partners. Successful bidders will be responsible for operating
the distribution companies, making the necessary investments to
improve the distribution network and customer service in line
with the objectives of the Federal Government of Nigeria set out
in the National Electric Power Policy (NEPP.)
As for the generating
companies, potential bidders/concessionaires, who should
existing local and/or international power generators or
investors with power generators as long-term technical partners,
will be responsible for operating the station, improving the
generation capacity and making the necessary investments in line
with the objectives of the Federal Government of Nigeria set out
in the NEPP.
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