PHCN privatisation proceeds hit $2.8bn

… Preferred bidders for 10 NIPP know fate August 8
The three tiers of government have, so far, invested well over $8 billion in the building of 10 power plants in the country, while the total privatisation proceeds for Power Holding Company of Nigeria (PHCN) is over $2.6 billion.




Speaking during a presentation to prospective investors in Hong Kong at a roadshow,  jointly organized by the Niger Delta Power Holding Company (NDPHC) and the Bureau of Public Enterprises (BPE), Governor Gabriel Suswan of Benue State, who is also chairman of the Joint Technical Committee for the transaction, noted that with a population of over 160 million, Nigeria is the largest market for investors in Africa and the atmosphere is conducive for investments.
In his remarks, the Deputy Chairman of the Senate Committee on Power, Senator Chris Ngige, disclosed that the proceeds of over $2.6 billion raised by the BPE in the privatization of PHCN Successor Companies, is the largest privatization transaction ever in Nigeria and one of the largest in the African continent.
He noted that the contract between the BPE and winning bidders of the 15 PHCN successor companies were signed in February 2013 and the privatization transaction process is expected to conclude by September this year.
According to him, the privatization of the power sector is expected to accelerate the growth of the nation’s economy assuring potential investors that their investments are safe in Nigeria.
Meanwhile the Federal Government has slated August 8,2013, for the announcement of short listed bidders for the 10 National Integrated Power Plants (NIPP) belonging to the Niger Delta Power Holding Company (NDPHC).
The bid announcement date was disclosed by the Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, in his presentation to prospective investors at the on-going NDPHC roadshow in Hong Kong.
Dikki stated that the sale of the power plants falls within the context of President Goodluck Jonathan’s Transformation Agenda. According to him, the transformation agenda seeks to, among other things, create a conducive atmosphere for private capital inflow.
He explained that besides power, the transport and housing sectors, development finance institutions and the Abuja Commodities and Stock Exchange that will introduce the warehouse receipt trading system, are also great investment opportunities awaiting interested local and international investors.
Dikki said that the BPE and NDPHC are partners in the joint sale transaction process for the sale of the 10 power plants.
“BPE is legally authorized to sell Federal Government’s 47 percent  shares, while NDPHC has the authorization of the States and local government councils  to sell 53 percent of the 80 percent shares on offer,” he added.
The DG affirmed that the BPE would add significant value to the process using its vast experience in privatization of assets in Nigeria spanning nearly 500 transactions in its 25 year history. The most recent, he noted, were the sale of the 15 Power Holding Company of Nigeria (PHCN) successor companies.
The NIPP generation portfolio comprises ten gas-fired power plants with a combined design capacity in excess of 5,453mw at (ISO) conditions and 4,774mw (Net) with each of the power plants incorporated as a subsidiary company of NDPHC.
The 10 power plants slated for privatisation include: Omotoso, with capacity to generate 450mw; Sapele, 450mw; Geregu, 434MW; Olorunsogo, 750mw; and Ihovbor, 450mw. Others are Gbarain, 225mw; Alaoji, 450mw; Calabar, 561mw; Egbema, 338mw and Omoku, 225mw.
Recall that the Benue State Governor, Mr.Gabriel Suswam, had on June 4,2013 during the commencement of the roadshow in Lagos, said over 200 investors had expressed interest in the 10 gas-fired power plants with a combined design capacity in excess of 5,453 megawatts
IS THERE ANY HEAD WAY WITH ALL OF THIS, OR ANOTHER POLITICAL PROPAGANDA?