Nigerian Government Meets Key Objectives In Attracting Private Investment In Power Sector
Over 100 Expressions Of Interest Received For Sale Of Power Plants
London 31st July 2013--International investors have responded with enthusiasm to the Nigerian Government's attempts to attract private investment into its power industry with over 100 bidders submitting Expressions of Interest to acquire majority shareholdings in the NIPP ten new thermal power plants. The combined sales could generate several billions of US dollars and would represent one of its most successful private investment projects.
According to the Niger Delta Power Holdings Company (NDPHC), 110 bids had been received by the July 19th cut-off date.
The sale process is being handled by the NDPHC, a special purpose company set up by the Government in 2005 to implement its National Integrated Power Project (NIPP) and the Bureau of Public Enterprises. The NIPP represents the Nigerian Government's flagship project that is mandated to add new generation, transmission and distribution capacity to Nigeria's electricity supply industry and resolve its chronic shortfall in supply.
Commenting on the positive response from international investors, Mr Anthony Muoneke, Executive Director, (Finance and Administration) at the NDPHC and Chairman of the Joint Working Group, superintending the share sale transaction, said, “This is a tremendous vote of confidence by the international investment community for the Federal Government of Nigeria's declared policy to increase private sector involvement in the electricity industry.
The historic inability of the power industry to meet demand has held Nigeria back as a country and prevented the Nigerian people from achieving their true potential. This will go a long way to addressing the current shortfall between supply and demand that plagues Nigeria.
This Government, under the leadership of President Goodluck Jonathan, is committed to resolving this situation and the Minister of Powers Prof. Chinedu Nebo has set a tight schedule of performance increases which are now being met.”
The NDPHC is overseeing the sale of these ten power generation assets in collaboration with the Bureau of Public Enterprises (BPE).
Each of the ten power plants is currently owned by a wholly owned subsidiary of NDPHC and 80% of the outstanding shares of these subsidiaries is offered for sale. Five of the plants are either fully or partially operating today with the remainder due to be operational latest mid-2014. Once operational, the ten power plants will generate over 5,000MW (ISO).
Each generation company will benefit from a contract structure covering the sale of electricity, the supply and transportation of natural gas, and access to the electricity transmission network.
The sale process has included staging events in New York, Lagos, Hong Kong and London during June. Each roadshow attracted over 400 attendees including representatives from the international investment community and their advisors.
At the 2013 Ministerial Platform held in Abuja on July 23rd the Ministry confirmed that its year on year performance 'score card' included increasing available generation capacity from 3,700MW in 2010 to 6,522MW in 2012-2013, and the average number of hours of power availability per day has also increased from 8 hours in 2010 to 16 hours in 2012.
Mr Muoneke, one of the three man team responsible for managing the NDPHC went on to say, “I am delighted at the calibre of the bidders we have attracted; all of which have had to meet stringent prequalification criteria. The Technical prequalification was to have experience of operating comparable sized plants, whilst the Financial prequalification was to pass an 'Equity Participation Financial Threshold' of between $100m and $200m depending on the size of the plant they are bidding for”.
“Staff from numerous organisations have been involved in the share sale project and I applaud my colleagues for their professionalism and integrity”.
The NDPHC will now evaluate all the bids received and create a shortlist by August 8th. Those shortlisted will receive a Request for Proposal (RFP) and will have until November to submit their proposal.
Press Contact:
Please direct any media enquiries to Keene Communications Ltd, a PR agency based in London.
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Press Contact: Peter Woodman Email: [email protected]
Telephone: 00 44 (0)20 7 839 2140
Note to editors:
About the NDPHC
Niger Delta Power Holding Company Limited (NDPHC) was established in 2005 to serve as the legal vehicle to contract for, hold, manage and operate the NIPP assets using private sector best practices. It is owned by three tiers of Government; the Federal Government holds 47%; 36 State Governments hold 35% and 774 Local Governments hold 18%.
Its Board of Directors is appointed from shareholders. Arch. Namadi Sambo, Vice President of the Federal Republic of Nigeria, is Chairman.
The Management team comprises: Mr James Olotu (Managing Director); Engr Louis Edozien (Executive Director, Engineering and Technical Services); and Mr Anthony Muoneke (Executive Director, Finance and Administration).
About Tony Muoneke
Tony Muoneke is available for press interviews and can comment on the following topics:
· Progress made with executing the National Integrated Power Project (NIPP)
· The current share sale project
· Insights and observations on the Government's strategy for the power industry and its policy of attracting private investment into the Power industry
Images of Tony Muoneke are available upon request
Please contact the NDPHC's media advisors, Keene Communications to arrange an interview.
Peter Woodman
Consultant
t: +44 (0)20 7839 2140