Power Sector Reform: Sale Of PHCN's 18 Successor Firms To End May 2011

ABUJA, August 31, (THEWILL) - The privatization of the 18 successor companies of the Power Holding Company of Nigeria (PHCN) is expected to be concluded by May 2011, according to the Director General of the Bureau of Public Enterprises (BPE), Ms. Bolanle Onagoruwa.

She made the disclosure during an inter-active session of key government officials with the private sector which held in Lagos.

"The next stage of the reform is to start an electricity market. The reform involves some level of liberalisation, as we will request investors to enter the market for the full privatisation of the PHCN. We have started the process of engaging consultants through Quality Based Selection (QCBS) method." Onagoruwa apprised that some firms were invited to express interest in receiving Requests for Proposal (RFP) to form consortia as transaction advisers.

"A transaction advisory consortium shall be led by a financial institution that possesses an excellent global investment banking pedigree. Other members of the consortium shall include a Nigerian financial institution with considerable investment banking experience, a Nigerian law firm with strong transaction advisory competencies, and accounting, engineering, and other relevant technical firms. A consortium must have considerable experience of electricity sector project finance and privatisation, globally and in Africa," she said.

At deadline on August 23, 2010, for the submission of Expressions of Interest (EOI) for the provision of consultancy for the privatisation of the generation and distribution successor companies of PHCN, six firms indicated their interest in receiving the RFP.

They are: African Finance Corporation, CPCS Transcorp, Goldman Sachs/ Stanbic IBTC, IPA Energy, Lazard/UBA; and Standard Chartered Bank.

RFPs will be sent to the firms this week and they have five weeks to respond, Onagoruwa added.