FG TO SELL PHCN POWER PLANTS TO OTEDOLA, ELUMELU, OTHERS

The Federal Government put up a bid to privatise six electricity generation companies unbundled from the Power Holding Company of Nigeria, PHCN and on Tuesday, Five firms emerged bid winners, offering a total sum of N107bn for five  electricity generation companies.

The bid winners are Transnational Corporation of Nigeria (Plc), Amperion Consortium, CMEC/Eurafric Energy Consortium, Mainstream Energy Solutions Limited and North-South Power Company Limited.

At the financial bids’ opening conducted in Abuja by the National Council on Privatisation, Transcorp emerged the preferred bidder for the Ugheli thermal power plant with an offer of $300m

The former Managing Director, United Bank for Africa Plc, Mr. Tony Elumelu, is the chairman of Transcorp, with his Heirs Holdings having substantial equity in the conglomerate.

Amperion Consortium matched the reserve bid price of $132m for the 414 megawatts Geregu power plant.

The consortium is made up of Israeli-based BSG Resource Limited, State Grid Corporation of China and Forte Oil Plc, in which billionaire businessman, Mr. Femi Otedola, is the major stakeholder.

For the Sapele thermal power plant, CMEC/Eurafric Energy Consortium emerged the preferred bidder with an offer of $201m.

Mainstream Energy Solutions Limited, which was the sole bidder for the Kainji hydro plant made an offer of $50.76m which is the reserved fixed annual fee since the plant will not be sold outright but will be given out on a 15-year concession with the bid winner paying a commencement fee of $257m before the deal can be sealed.

North-South Power Company Limited, which is linked to the former dictator, Gen. Ibrahim Babangida, emerged the preferred bidder for the Shiroro hydro power plant with a sole bid of $23.6m annually for a 15-year concession. The company will, however, pay a commencement fee of $111.65m to close the deal.

However, the bid for the Afam power plant was not opened as all the three bidders failed to meet the stipulated guidelines, according to the Chairman, Technical Committee, NCP, Mr. Atedo Peterside, who supervised the opening of the bids.

 Let's hope this privatization works and also that the bills won't be too high.