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Transcorps Wins Bid For The Acquisition of Ughelli Power Plant

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The Nigerian Bureau for Public Enterprises ('BPE') , following the conclusion of its evaluation of the commercial bids for the privatization of some of the power generation companies created from the unbundling to the Power Holding Company of

Nigeria (PHCN), has announced that the Transcorp Consortium consisting of Transcorp, Symbion Power LLC, Medea Development, Thomassen Holding Limited and PSL Engineering (the 'Consortium') has won the bid for the acquisition of the 972 mega watts capacity Ughelli Power Plant; one of the six power generation companies being privatized.

The Transcorp Consortium has over 35 years worldwide power sector experience in Africa, Europe and Middle East. The Consortium's bid had earlier scaled the technical evaluation by the BPE, confirming its capacity to manage the plant according to international standards.

The President/CEO of Transcorp, Mr. Obinna Ufudo said 'We are excited at this opportunity to contribute to the improvement of power generation in Nigeria while diversifying our operating entities. This is a win-win for the Nigerian public and for our 300,000 plus Nigerian shareholders. Our Consortium prepared this bid with precision, pulling together all the components necessary for the effective turnaround and doubling of the plant's generating capacity. Our immediate plan is to deploy private sector resources to improve the output of the plant from the current 300MW to over 650MW within the first 2 years of our take over.'

'The Consortium members bring a track record of expertise and international best-practices in generation, operation, and maintenance. We have a deep commitment not only to revamping the Ughelli Power Plant to full capacity, but also to building capacity in the communities we operate in. We will improve the quality of the human capital at the plant through on-the-job and other specialized training and improvement programs, equipping them with necessary skills to upgrade the power plant to international standards' says Tony Chukwueke, Director of Transcorp Energy (a wholly-owned subsidiary of Transcorp Plc). 'There is no reason why a Nigerian operated power plant cannot be ranked amongst the best managed plants in the world' he concluded.

Commenting on the successful bid, The Chairman of Transcorp Plc, Mr. Tony O. Elumelu, CON said 'Our intent is to leverage our time tested expertise in turning around businesses in growing the Ughelli Power Plant to a 1000mw generating plant by 2017.''

Commenting on the process leading to the Selection of the Transcorp Consortium, the Chairman of The Technical Committee of The National Council on Privatisation (NCP) Mr Atedo Peterside said "The NCP, as a matter of deliberate strategic choice raised the qualification bar to ensure that only operators who are technically qualified and financially sound make it to the finishing line." He added that he is fairly confident that the process has produced the most appropriate core investors and concessionaires for the thermal and hydro generating companies, thus, fulfilling the government objective of rapid transformation of the electric power sector in Nigeria.

Ughelli Power Plc (Ughelli Genco) is a thermal power generating plant located in Delta State with installed capacity of 972 MW but currently producing   330MW which accounts   for 13% of Nigeria's total power production.

 About the Consortium
Transnational Corporation of Nigeria Plc
Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate with a diversified shareholder base of over 300,000 investors. Our portfolio comprises strategic investments in the hospitality, agribusiness and energy sectors. Our notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Metropolitan Hotel, Calabar; Teragro Commodities Limited, operator of Teragro Benfruit plant - Nigeria's first-of-its-kind juice concentrate plant; and Transcorp Energy Limited.

Symbion Power LLC
Symbion Power LLC is an American electricity power services company that operates across the globe in generation and transmission. Symbion is an established Independent Power Producer in Africa and currently owns and operates power generation plants and distribution facilities in Tanzania and has provided services in the development of electricity supply infrastructure in some of the most challenging environments including Iraq at the height of the insurgency and, Afghanistan.

Thomassen Holding Limited
Thomassen is a specialised gas turbine maintenance contractor with operating companies in the United Arab Emirates and the Sultanate of Oman, which provide specialist site services to utility companies and industrial power plants in the Middle East and Africa.

Medea Development S.A.
Medea is a consulting, engineering and projects development company based in Italy with a proven track-record in the energy and mineral resources sector, particularly in power generation, hydrocarbons (oil and gas) and mining (coal, uranium, iron ore, etc.).

PSL Engineering and Control Limited
PSL is based in Nigeria and provides engineering solutions to clients throughout the country, mainly in the power and oil & gas sectors.