Winners emerge for 10 power generation firms

By The Citizen

Top bidders for the 10 Niger Delta Power Holding Company of Nigeria electricity generation firms emerged on Friday as the Federal Government opened the financial bids for the power plants.

Investors whose bids were above the reserved price for each of the companies were announced at the bid opening ceremony, which was chaired by the Governor of Benue State, Mr. Gabriel Suswam, in Abuja.

The National Council on Privatisation and the governing board of the NDPHC had approved 42 pre-qualified bidders out of 66 bidding consortia for the 80 per cent equity in the 10 power generation companies.

The 10 generation companies include Alaoji, Benin, Calabar, Egbema, Gbarain, Geregu, Ogorode, Olorunsogo, Omoku, and Omotosho.

For Alaoji, the AITEO Consortium emerged as the only bidder with a financial offer of $902m for the firm, while EMA Consortium was highest bidder for both Benin and Calabar Gencos.

Dozzy Integrated Power Limited, KDI Energy Resources, Seoul Electric Power Limited and Daniel Power Consortium emerged highest bidders for Egbema, Gbarain, Geregu and Ogorode Gencos respectively.

ENL Consortium Limited, Shayobe International Limited Consortium, and Omotosho Electric Power were highest bidders for Olorunsogo, Omoku and Omotosho power generation companies respectively.

Speaking at the programme, Suswam described the bidding process as transparent, adding that when privatised, the firms would help boost the country's power generation capacity and significantly improve electricity supply.

He said, 'The President wants the process to be transparent and I can tell you that it had been more than transparent. The President is serious about improving the power situation in Nigeria in order to meet the power yearnings of Nigerians and this we hope to achieve through this process.'

In his address, the Director-General, Bureau of Public Enterprises, Mr. Benjamin Dikki, said the bids opening was about the last activity in the privatisation process of the power generation companies.

According to him, the conclusion of the financial bids opening process would see to 'the privatisation of virtually all the Gencos in the country,' adding that power plants in Nigeria would henceforth be fully run by private investors.

He said, 'The privatisation of the successor companies of the defunct Power Holding Company of Nigeria was a huge success and was applauded as being very transparent globally.

'The privatisation of this 10 generation companies is the first time this transaction is being handled by the NDPHC and the BPE and we are determined to bring the process to a successful conclusion by ensuring that it is transparent.'

The Managing Director, NDPHC, Mr. James Olotu, said the privatisation of the power generation companies was a joint transaction between the NCP and the governing board of NDPHC.

The 10 plants are jointly owned by the three tiers of government. The Federal Government contributes 47 per cent equity stake, while the local and state governments contribute the remaining 53 per cent equity.