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FG to privatise 10 NDPHC power generation plants by 2014

By The Rainbow
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The Federal Government plans to privatise 10 power generation plants built by the Niger Delta Power Holding Company as an intervention programme by mid 2014, the Managing Director, Niger Delta Power Holding Company (NDPHC), Mr James Olootu, has said.

He spoke during  an interactive session with journalists at the weekend in Lagos.

Olootu said the board of directors of the company had recommended the sale of the plants to President Goodluck Jonathan, who has approved the sale.

Vice President Namadi Sambo  is  the chairman, has

He said the sale became imperative due to the fact that the company had achieved the mandate given to it from inception in 2005. The mandate was to build 10 independent power plants to generate 5,000 mega watts (MW) which has been built but awaiting commissioning.

According to him, 'the mandate was to build 10 power plants across the country with capacity to generate 5000MW by the end of 2013 and divest it. We are confident to tell you that this year will be a year of harvest in the power sector. All the power generating plants will be completed this year. In fact, six plants are ready for commissioning while four others will be completed in the next few months.

'The process that we went through to ensure that we are where we are today is intrinsic. President Goodluck Jonathan has approved the divestment plan and it would be concluded mid next year.'

'Providing stable power supply has been a major priority of this administration and we all know that power business is best managed by private investors.

'We are divesting 80 per cent stake in each power plant as valued by our financial advisers/valuers. We will retain 20 per cent in order to assure potential investors of our confidence in the plants we are selling,' he stated.

He said sensitisation would commence today through a road show in Lagos. The road show will be extended to the United Kingdom, the United States and Hong Kong.

Benue State governor, Gabriel Suswam, had recently hinted that: 'The power companies will be privatised  after a road show had been undertaken to make sure the country gets the best form of businesses. A committee will be set up to marshall the entire process of privatisation.'