PHCN: NCP Okays Transcorp, 14 Others As Preferred Bidders For Discos, Gencos

SAN FRANCISCO, February 21, (THEWILL) - The unbundling of the Power Holding Company of Nigeria (PHCN) finally entered its most crucial stage, Thursday, as the National Council on Privatisation (NCP) okayed 10 distribution companies (Discos) and five generation companies (Gencos) to take over the operations of PHCN successor companies at a ceremony which held at the Banquet Hall of the State House, Abuja.

At the ceremony, the companies appended their signature to a Sale and Purchase Agreement which granted them the status of the preferred bidders upon down payment of 25 percent of the share purchase price within 15 business days after signing, as well as payment of the outstanding 75 percent 90 working days after the signing.

The preferred bidders for the Discos as approved by the NCP are Kann Consortium for Abuja Successor Company valued at $164 million; Vigeo Power Consortium for Benin valued at $129 million; West Power & Gas for Eko Distribution Company valued at $135 million; Interstate Electrics Ltd for Enugu at $126 million; Integrated Energy for Ibadan Distribution Company at $169 million; NEDC/KEPCO for Ikeja Distribution Company at $131 million; Aura Energy Ltd for Jos at $82 million; Sahelian Power SPV Ltd for Kano at $137 million; 4Power Consortium for Port Harcourt at $124 million and Integrated Energy Distribution & Marketing for Yola valued at $59 million

The preferred bidders for the Gencos are Amperion for Geregu Plant at $132 million; Mainstream for Kainji Plant at $50.76 million plus commencement fee of $237,870,000;North-South for Shiroro Plant at $23.60 million plus commencement fee of $111 million; Transcorp/Woodrock for Ughelli Plant at $300 million and CMEC/Eurafric for Sapele Plant at $201 million.

The process which started eight years ago, with the vision of reforming the power sector, was legally backed up with the enactment of the Electricity Power Sector Reform Act which provided for the unbundling of the PHCN successor companies.

When the privatisation began, the Bureau of Public Enterprises, BPE received 301 Expression of Interests (EOIs) and later shortlisted 207 firms that met the minimum qualification standards set. Out of this number only 163 firms purchased bid documents.

Vice President Namadi Sambo, who chairs the NCP, described the event as "important landmark", saying it marked several important milestones in the on-going reform of the Nigeria Electricity Supply Industry.

He expressed delight that the "Gencos would today (Thursday) be signing Ancillary Agreement with the Transmission Company of Nigeria Plc" to pave way for compensation to providers of services in line with the best practice in the power sector.

Sambo, who was represented by the Minister of Power, Prof Chinedu Nebo, thanked the World Bank for "its support towards making these agreements bankable through the provision of Partial Risk Guarantee credit support instrument".

He assured that the Federal Government would take all necessary steps to ensure that the "expectations of the Nigerian people in terms of improved service delivery are achieved".

BPE acting Director General , Mr. Benjamin Ezra Dikki, said the ceremony "underscores President Jonathan's commitment to move Nigeria from darkness to light, to leave Nigeria a better pace than he met it, whatever it cost him,” adding “ Today's signing ceremony is a clear indication that where there is a will, there is always a way.".