Nigeria to rake in over $4bn from sale 7 NIPP power plants

The Joint Transaction Board comprising the Boards of the National Council on Privatisation (NCP) and the Niger Delta Power Holding Company (NDPHC), have approved the preferred and reserved bidders of seven out of the ten NIPP power plants, owned by the Niger Delta Power Holding Company.

Vice President Namadi Sambo, who also chairs the Joint Transaction Board, commended the successful conduct of the financial bid opening, which held on the 7th of March, 2014 at the Transcorp Hilton Hotel, and adjudged by all stakeholders as transparent.

However, the Vice President directed that the sale of the three other Power Plants, namely Alaoji Generation Company, Omoku Generation Company and Gbarain Generation Company affected by litigation instituted by Messrs Ethiope Energy Limited should be stepped down, until the matter is resolved.

The preferred bidders are required to within 15 business days of official notification, provide an Unconditional Bank Guarantee of 15 per cent of the price offered by them. The country is expected to rake in US$4,253,291,777 at the conclusion of the privatisation process of the seven NDPHC power plants.

The meeting which held at the State House Abuja on Friday, approved as follows:

1. Benin Generation Company: Preferred Bidder EMA $580,000.000 .Reserved Bidder Index Consortium $575,000,000

2. Calabar Generation Company: Preferred Bidder EMA Consortium $625,000,000
Reserved Bidder Nebuia Power Generation Consortium $623,750,000

3. Egbena Generation Company: Preferred Bidder Dozzy Integrated Power Limited $415,075,000
Reserved Bidder AITEO Consortium $392,000,000

4. Geregu Generation Company: Preferred Bidder Seoul Electric Power Limited $690,200,000
Reserved Bidder Yellowstone Electric Limited $613,111,113

5. Ogorode Generation Company: Preferred Bidder Daniel Power Consortium $531,777,777
Reserved Bidder ESOP Power Limited $510,000,000

6. Olorunsogo Generation Company: Preferred Bidder ENL Consortium Limited $751, 240,000
Reserved Bidder Index Consortium $730,000,000

7. Omotosho Generation Company: Preferred Bidder Omotosho Electric Power $659,999,000
Reserved Bidder ENL Consortium Limited $645,156,220

The Optimal Sales Value for the Preferred Bid is $4,253,291,777 billion and the Least Sales Value for the Reserved Bids is $4,089,017,333 billion.

The meeting also approved that notifications be issued to preferred bidders of each of the seven Generation Companies to summit the required 15% bank guarantees within the following 15 business days, while also approving the commencement of transaction closure planning meetings following the placement of the required bank guarantees.

The meeting further approved that the legal actions to vacate the court injunctions in respect of the three other Generation Companies continue with vigour for expeditious dispensation.

The meeting had in attendance the Governor of Delta State,  Emmanuel Uduaghan, the Deputy Governor of Ekiti State, Prof. Modupe Adelabu, and the Minister of Power,  Chinedu Nebo.

Others present were the Supervising Minister of National Planning Commission, Ambassador Bashir Yuguda, the Minister of State Power, Hon. Mohammed Wakil as well as the Chairman of the Technical Committee of the NCP,  Atedo Peterside among other top government functionaries.