… Pay $559.446m to BPE

Clara Nwachukwu and Emma Ujah Abuja Bureau Chief

All the preferred bidders for the 15 Power Holding Company of Nigeria, PHCN successor companies  have met the deadline for the payment of the mandatory 25 percent of the offer value of their bids, the Bureau of Public Enterprises, BPE has confirmed.

As at the close of deadline Thursday, the BPE in a statement said the 14 bidders paid of a total sum of $559.446million or N87.8billion into its coffers, representing 25 percent of the bids value for the 15 successor companies.

About 24 hours to the deadline, 11 bidders had paid the mandatory cost, while the remaining three bidders paid up the mandatory fees before the close of work yesterday as shown below:.

·         4Power Consortium, promoted by the South/South governors paid $31million for Port-Harcourt Distribution Company

·         Interstate Electrics Limited – $31.5 million for Enugu Distribution Company

·         North-South Power Company – $27,913,633.50 for Shiroro Power Plc.

It had earlier been reported that many of the bidders were struggling with raising the necessary funds, which was debunked by the Vigeo Group, which noted that the delay in the payment of the 25 percent bid value was merely part of the cost effective measures being adopted by some of the bidders.

Accordingly, about seven of the bidders paid the fees 24 hours to the close of the March 21, 2013 deadline, and these included:

·          Vigeo Consortium, the preferred bidder for Benin Distribution Company, which paid $32.25million

·         Transcorp/Woodrock Consortium – $75 million for Ughelli Power Plc

·         CMEC/EUAFRIC Energy JV- $50,249,965 for Sapele Power Plc

·         Kann Consortium – $41 million for Abuja Distribution Company

·         Aura Energy – $20,464,968.15 for Jos Distribution Company

·         Mainstream Energy Ltd – $59,467,500 for Kainji Power Plc

·         Sahelian Power SPV – $34.25million for Kano Distribution Company

Other bidders who avoided the hassles of the deadline were:

·         Amperion Power Company Limited, the first to pay $33 million for Geregu Power Plc

·         Integrated Energy Distribution & Marketing Company – $42.25 million and $14.75 million for Ibadan and Yola Distribution Companies respectively

·         NEDC/KEPCO – $32.75 million for Ikeja Distribution Company

·         West Power & Gas – $33.75 million for Eko Distribution Company.

With the successful completion of the payments by all the proffered bidders, there would be no need to fall back on the reserved bidders as would have been the case, if any of the proffered bidders could not meet the deadline for the mandatory payment.

The bidders are now left with the challenge of raising the balance of their bid values, which they are expected to turn in within a 90-day deadline based on agreements with the BPE.

It would be recalled that the final approval of the preferred bdders by the National Council on Privatisation, NCP, and its announcement for the successor companies was done on October 23, 2012.

The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.

It was learnt that preparations were already at advanced levels between the investors and officials of the BPE to ensure a smooth takeover of the successor companies.

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