Financial Energy Review
The Board of Directors, Niger Delta Power Holding Company, NDPHC, and the National Council on Privatisation have approved the sale of five generating companies in the country through a competitive bidding process.
This is coming even as the Bureau of Public Enterprises, BPE, has called on prospective investors to express interest in purchasing 100 percent shareholding. Vanguard, gathered weekend that the five power generation companies constructed under the National Integrated Power Project, NIPP, listed for sale are located in Kogi, Edo, Cross River, Ondo and Ogun.
The five generation plants include Geregu Generation Company Ltd with gross installed capacity at ISO condition of 506 Megawatts (MW) and Benin (Ihovbor) Generation Company Ltd with 507 MW. Others are Calabar Generation Limited with 634MW, Omotosho Generation Limited with 513MW and Olorunsogo Generation Company Limited with 754MW.
A document about sale of the GenCos indicated that in continuation of the ongoing reforms of the Nigerian Electricity Supply Industry and was consistent with the Nigerian Electric Power Policy and Electric Power Sector Reform, EPSR, Act, 2005. However, prospective investors are expected to submit separate Expressions of Interest, EoI, for each generation company. The Director-General, BPE, Alex Okoh, stated: “Each bidder must be an experienced power generation company that owns and/or operates utility size power plants. ‘’In case of a consortium, at least one of the consortium members must be an experienced power generation company (the “Technical Partner”.
The technical partner will be responsible for providing operation, maintenance and management services under a long term agreement. BPE had during its 2021 budget defence at the National Assembly, disclosed plans by the Federal Government to sell some generation companies.
