Nigeria’s
power reform process is on track as the Bureau for Public Enterprises (BPE)
announced this evening that it has received bids from 54 investors for 11 electricity
distribution companies put up for privatisation. Today was the deadline set by
the BPE to receive technical and financial proposals from investors interested
in buying the distribution companies unbundled from the Power Holding Company
of Nigeria (PHCN).
Namadi Sambo, Nigeria's Vice President and Chairman National Council on Privatization
The Federal
Government of Nigeria intends to sell as much as 70% of its stakes in the
distribution companies to interested investors. The Nigerian government hopes that selling the
electricity companies will not only bring the required efficiency in their management
but also attract the significant level of investment required to meet Nigeria’s
electricity needs.
Nigeria
current produces less than 5000MW of electricity against an estimated need of
about 30,000MW.
The breakdown
of the bids received by the BPE shows that five companies are bidding for Abuja
Electricity Distribution Company Plc, Seven companies are bidding for Benin
Electricity Distribution Company Plc, Three Companies are bidding for Enugu
Electricity Distribution Company Plc, Nine Companies are bidding for Eko
Electricity Distribution Company Plc while Seven Companies are bidding for the
Ibadan Electricity Distribution Company Plc.
Ten companies
are bidding for Ikeja Electricity Distribution Company Plc, Two Companies each are
bidding for Jos Electricity Distribution
Company Plc, Kaduna Electricity Distribution Company Plc and Kano Electricity
Distribution Company Plc. Also Three companies each are bidding for Port
Harcourt Distribution Company and Yola Electricity Distribution Company Plc.
The
BPE guidelines states that prospective core investors must be local and/or
international power distributors or investors with power distributors as
technical partners. The investors will be responsible for operating the
distribution companies, making the necessary investments to improve the
distribution network.
The transaction
timeline reveals that the evaluation of the technical bids will take place
between August 14 and 28, 2012. The National Council on Privatisation (NCP)
will approve the results of the technical evaluation by September 11, 2012.
The deadline for the
shortlisted bidders for generation companies to submit their letters of credit
is September 18, 2012 while October 2, 2012 is the deadline for shortlisted
bidders for distribution companies.
NCP’s approval will pave way for the opening
of financial bids of the shortlisted investors.
The BPE will on
September 25, 2012 open the financial bids of prospective investors for the generating companies while October 10,
2012 is the date for the opening of the financial bids for the distribution
companies.
The announcement of
the preferred bidders for the generating companies is October 9, 2012 while
October 23, 2012 is the date for the announcement of the preferred bidders for
the distribution companies.
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
I would like to thank you for the efforts that you have made in writing this article.This is exactly what I need,Thanks a lot.Keep blogging.
ReplyDeleteoffshore company