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The Federal Government to generate more than five billion dollars($5.7b) from 10 power plants -BPE Boss

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The Federal Government will generate more than five
billion dollars from the sale of 10 National Integrated Power Plants
(NIPP), an official said.
Mr Benjamin Dikki, the Director-General, Bureau of Public
Enterprise (BPE), made the disclosure at a news conference on
Friday in Abuja after the bidding process by a consortium of investors.
He said that the National Council on Privatisation (NCP) and the
Board of Niger Delta Power Holding Company (NDPHC)
would soon meet to approve the bid process before the payment.
He added that “25 per cent of the total cost of a plant must be paid
within 10 days and the balance paid in six months; of course that will
be after the approval of the NCP and the NDPHC board.”
Earlier, Mr Atedo Peterside, the Chairman of the NCP, who
supervised the bidding, assured investors of transparency.
Peterside announced the preferred bidder and reserved bidder for each
of the 10 power plants according to the highest bids submitted by the
investors.
He said the process was done in line with international best practice.
Peterside said ALTEO Consortium was the only company that bid
for Alaoji Gence with 902 million dollars to emerge the winner.
He noted that only 80 per cent of shares in each of the power
generating companies was up for sale.
The NCP chairman added that government would retain 20 per cent
of its share holdings in these companies.
He said “for Benin Genco, EMA Consortium is the preferred bidder
with a bid opening of 580 million U.S. dollars, while Index
Consortium is the reserved bidder with a 575-million-dollar bid.
“Calabar Genco has EMA Consortium as preferred bidder with a bid
of 625 million dollars and Nebula Power Generation Consortium as
reserved bidder with a 623-million-dollar bid.
“ALTEO Consortium emerged as the preferred bidder for Egbema
Genco in Imo State with a 392-million-dollar bid and Dozzy
Integrated Power Ltd as reserved bidder with 415 million dollars bid.’’
Peterside said that for Gbarain Genco (Bayelsa), there were six
bidders with KDI Energy Resources and Azikel Power Ltd
emerging as Preferred and Reserved bidders respectively.
He said KDI Energy Resources made a bid of 340 million dollars
and Azikel Power Ltd, 305 million dollars to win the bid.
“For Geregu Genco (Kogi) Seoul Electric Power Ltd emerged as
preferred bidder with a
690-dollar bid and Yellow Stone Electric Ltd as a reserve bidder
with 613 million dollars bid.
“Daniel Power Consortium emerged the preferred bidder for
Ogorode Genco (Delta) with a 531-million-dollar bid, while
ESOP Power Ltd was the reserved bidder with 510 million dollars
bid.
“Olorunsogo (Ogun) Genco initially had five bidders but ALTEO
Consortium pulled out and would therefore pay a fine of four million
dollars as penalty.
“So for Olorunsogo, we have ENL Consortium as preferred bidder
with 751 million dollars bid and Index Consortium emerged the
reserved bidder with 730 million dollars bid.’’
Peterside said that Shayobe International Ltd Consortium emerged
the preferred bidder for Omoku Genco in Rivers with a 318-million-
dollar bid, while ALTEO Consortium emerged as reserved bidder
with a 312.5-million-dollar bid.
The NCP boss said Omotosho Genco in Ondo State had the highest
number of nine bidders, with Omotosho Electric Power emerging as
preferred bidder with a 659-million-dollar bid and ENL Consortium
as reserved bidder with 645 million dollars bid.
Earlier, the Chairman of the Joint Technical Transaction
Committee, Mr Gabriel Suswam, had expressed delight at the
successful conduct of the bid.
He said “all the plants are in good condition, the investors who bid for
the plants have done their own due diligence and inspection of the
plants before submitting their bids.’’
Mr James Olotu, the Managing Director, NDPHC, said that with
the privitisation of the GENCOS, the power situation in the
country would improve significantly.
The News Agency of Nigeria (NAN) reports that 66 companies
initially applied to bid for the 80 per cent equity in the 10 power
plants, however only 42 companies were approved to take part in the
exercise.
The 10 power plant have a combined capacity of 5,034MW.
The plants for sale include Olorunsogo Power Plant (phase 2),
Ogorode GENCO, Gbarain Power Plant, Alaoji Power Plant,
Benin GENCO, Calabar GENCO and Egbema Power Plant.
Others are the Geregu Power Plant, Omotosho Power Plant and
the Omoku power plan

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