By Bolaji Ajala with agency report
Copperbelt Energy Cooperation, CEC, has been shortlisted to take over Power Holding Company of Nigeria, PHCN, which is scheduled for privatization. CEC is likely to take on more debts for the purchase of PHCN in view of its planned privatization.

Nigeria plans a multi-billion dollar privatization of its power sector to improve efficiency and cut persistent electricity outages. Meanwhile CEC is Zambia’s distributor of power to the mines and was in the process of buying Nigeria’s power unit.

Director of corporate finance, CEC, Mutale Mukuka told Reuters on the sidelines of an investor conference in Johannesburg that Nigeria has split Power Holding Company’s distribution into 11 different units valued at about 100 million dollar each, adding that consortia that includes CEC has been short-listed to buy at least two of them.

Mr Mukuka explained that “We still have some leverage on our balance sheet. We can raise some money through the balance sheet and then we can do a rights issue depending on how good the deal is.

“The first call is the balance sheet and hereafter if we need more we can leverage it through bringing in more equity in the business.”

He further said that CEC also expects electricity demand to exceed the pre-crisis level of 540 megawatts in at least 18 months as new mines come on stream and existing operations expand.

”Africa’s top copper producer expects at least two new mining operations to begin. Brazilian Vale’s Konkola North mine and the Muliashi mine which will be operated by Luanshya Copper Mine.

“With all these projects coming onstream, taking up power definitely, will call for additional load. Each of the existing operations is also trying to maximize copper production and take advantage of the price.” Mukuka noted.

Zambia has vast high-grade reserves of the metal and expects output to more than double to around two million tonnes by 2015.