FG to earn N413bn from sale of power assets in 2013

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BY KUNLE KALEJAYE & WINIFRED IMONLUAMEN

THE Federal Government is to earn over N413.4 billion ($2.6 billion) from the sale of power assets in the 2013 fiscal year.

According to a publication by the Bureau of Public Enterprises, BPE, the potential core investors in 15 of the successor power companies carved out of the Power Holding Company of Nigeria, PHCN, have already paid $559.45m into the coffers of the Federal Government by the deadline date of Thursday, March 21, 2013.

The BPE said the amount represents only 25 per cent of the total sum, which the Federal Government is expecting from the sale of the 15 power companies. The agency in charge of the privatization process also stated that the transaction process of the two remaining successor companies – Afam Power Plc and Kaduna Distribution Plc are currently on going.

The potential core investors, BPE said, are expected to pay the 75 per cent balance of the bid valued of the assets in the next six months. The BPE said it is expecting to receive $31million from 4Power Consortium for Port Harcourt Distribution Company; $31.5 million from Interstate Electrics Limited for Enugu Distribution Company; and $27,913,633.50 from North -South Power Company for Shiroro Power Plc on March 21, 2013

These amounts according to BPE represent the mandatory 25 percent bid value for the companies. Earlier, Vigeo Consortium, the preferred bidder for Benin Distribution Company, had paid USD $32.25million; Transcorp/Woodrock Consortium, the preferred bidder for Ughelli Power Plc, paid $75 million; CMEC/EUAFRIC Energy JV, the preferred bidder for Sapele Power Plc, paid $50,249,965; Kann Consortium, the preferred bidder for Abuja Distribution Company, paid $41 million; Aura Energy, the preferred bidder for Jos Distribution Company, paid $20,464,968.15; Mainstream Energy Ltd, the preferred bidder for Kainji Power Plc, paid $59,467,500; and Sahelian Power SPV, the preferred bidder for Kano Distribution Company, paid $34.25million.

Other bidders are: Amperion Power Company Limited, the preferred bidder for Geregu Power Plc, which paid USD$33 million; Integrated Energy Distribution & Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies, which paid USD$42.25 million and USD$14.75 million for Ibadan and Yola Discos respectively; NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company, which paid USD$ 32.75 million; and West Power & Gas, the preferred bidder for Eko Distribution Company, which paid USD$33.75 million.

The 18th successor company, the Transmission Company of Nigeria is slated for Management Contract to Canadian power firm, Manitoba which has generated varied controversy in recent time.

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