Clara Nwachukwu
The Federal Government has approved extension, by three weeks, of the deadline for the submission of Expressions of Interest, EOIs, for the successor companies created out of the Power Holding Company of Nigeria, PHCN to Friday, March 4.

The deadline was originally scheduled for March 18, thereby raising doubts that the global investment forum, which the Bureau of Public Entreprises embarked upon to attract foreign investors to the comatose power industry, may not have been as successful as anticipated.

The BPE recently concluded a five-city Electric Power Investors’ Forum, to court world class investors to participate in the privatisation of the successor companies. The Forum held in Lagos (January 18); Dubai (January 24); London (January 27); New York (February 1); and Johannesburg (February 10).

But the BPE in a statement on Thursday, defended that the extension followed representations by prospective investors, which was approved by Vice President Mohammed Namadi Sambo, who is also the Chairman, National Council on Privatisation, NCP.

However, some industry analysts, who spoke with Vanguard in confidence, noted that the privatisation programme was ill-timed in view of the upcoming general elections in April, coupled by the high sense of insecurity in the country, occasioned by spates of kidnapping and civil unrests in different parts of the country.

“How can the Federal Government expect foreign investors to come and invest in Nigeria at this point in time, when the elections are just round the corner? They want to be sure of the outcome of the elections before they know whether to put their money down,” they noted.

Call for interest
Last year, the BPE called for expression of interests for the companies unbundled from the PHCN in published adverts in local and foreign media, between December 13 and 20, 2010.

Prospective core investors were invited to express interest in the 11 distribution companies, four thermal power stations, and as concessionaires for the two hydro power stations.

The companies are, Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Eko Electricity Distribution Company Plc; Ibadan Electricity Distribution Company Plc; and Ikeja Electricity Distribution Company Plc. Others are Jos Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.

The Thermal Power Generating Companies include:
Ughelli Power Plc – situated in Delta area in South-South region of Nigeria with a total installed capacity of 972 MW;
Geregu Power Plc- situated in Kogi State in North Central Nigeria with a total installed capacity of 414 MW;
Afam Power Plc comprising of Afam I-V power stations located in Rivers State in South-South Nigeria with an installed capacity of 776 MW; and Sapele Power Plc located in Sapele, Delta State in South-South Nigeria with an installed capacity of 1020 MW.

Hydro Power Generating Companies:
Kainji Power Plc comprising Kainji Power Plants and Jebba Power Plants located in Niger and Kwara States respectively in North-Central Nigeria; and Shiroro Power Plc located at the Shiroro Gorge, Niger State in North-Central Nigeria.

Pre_qualification
According to the BPE, “Potential bidders should be existing power distribution companies or core investor groups with power distribution companies as long-term technical partners.

“Successful bidders will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy, NEPP.”

For the generating companies, the Bureau stated that “Potential bidders/concessionaires, who should be existing local and/or international power generators or investors with power generators as long-term technical partners, will be responsible for operating the station, improving the generation capacity and making the necessary investments in line with the objectives of the Federal Government of Nigeria set out in the NEPP.”