Guardian

Stakeholders support sale of 10  plants

APPARENTLY savouring from the expected goodies of the transformation process, the Federal Government Tuesday said there was no going back on the ongoing privatisation of the power sector.

This affirmation was given as stakeholders across various sectors of the economy threw their weight behind the planned sale of 10 new power plants under the National Integrated Power Project (NIPP) scheme.

The Minister of Power, Chinedu Nebo, who was among the key speakers at the maiden edition of the NIPP road show in Lagos, said the privatisation process was maturing, dismissing any room for abortion.

The road show marks the kick-off of the offer, as the agency plans to further take the campaign to London (June 12-13);  Hong Kong (June 19-20); New York City (June 26-27) accordingly.

While encouraging private investors to take the opportunities in the 10 new power plants offered by the Niger Delta Power Holding Company Limited (NDPHC), Nebo assured that the Federal Government would do everything to make sure an accountable, transparent process is put in place, and the process would be implemented using the best practices in the world.

He said: “President Goodluck Jonathan has showed his key commitment to ensure power delivery to Nigeria in other to unleash prosperity in all sectors of our economy. He believes very strongly that in the times of the private sector, the power sector will thrive and drive Nigeria’s economy as well as emancipate our people.

“The government will neither tolerate half measure, nor it is an idea that is subject to abortion. This vision is maturing. The entire process of privatizing the power sector is irreversible. We are moving in the right direction to ensure that we give maximum support to the organized private sector to bring revolution to our power industry,” he said.

Citing the success case of the telecommunication sector, the minister said the revolution has injected lot of resources in Nigeria’s economy, provided jobs and all kinds of downstream opportunities.

“We expect that what is about to happen in the power sector will surpass what happened in the telecoms industry.  It is expected to be a greater exponential success and will eventually revolutionise the economic situation in Nigeria, emancipate our people, reduce poverty, create jobs, bring about industrial revolution and also the revival of our Small and Medium Enterprises (SMEs) that are eventual moribund today”

Director General, Bureau for Public Enterprises (BPE), Benjamin Dikki, described the transaction as a ‘unique one’ because the process involves the NDPHC and BPE, due to the share holding between the states and the Federal Government.

According to him, the states have 53 per cent interest while the Federal Government holds the remaining 47 percent stake.

Governor Uduaghan urged the investors to take the opportunities in the sector, assuring that all the states where power plants are situated are now safe for investment.

He enjoined the prospective investors to involve the governors of the states immediately after winning the bid, so that they can work out a security master plan.

“Niger Delta is very safe. Your investments are secured and you will maximize your investment, if you get the culture,” he said.

The NDPHC, owners of the NIPP plants said 80 per cent stake of the plants, scattered across the country would be offered to local and foreign investor in an open competitive bidding.

The power plants include, Olorunshogo phase II, 125MW (Ogun State), Ogorode 451MW (Delta State), Gbarain 225MW (Bayelsa State), Alaoji 1074MW (Abia State), Ihovbor 451MW (Edo State), Calabar 561MW (Cross River State), Egbema 338MW (Imo State), Geregu 434MW (Kogi State), Omotosho 500MW (Ondo State), and Omoku 250MW in Rivers State.

Some of the plants (expected to add about 5000MW to the national grid) are newly commissioned, while other are at various stages of completion.

Managing Director, NDPHC, James Olotu said all the on-going stations would be commissioned by December this year prior to hand over, which is slated for middle of next year.

The Transaction Adviser on privatisation to NDPHC, Arif Mohiuddin, said the submission of Expression of Interest (EOI) will elapse on July 17, 2012, while bidders’ conference will be held on September 18, submission of proposals to close on April 8. To announce qualified bidders in January 2014. The final hand over is expected to take place between June and July 2014.