BPE, NDPHC’s full account of how winners will emerge for 506MW Geregu; 507MW Benin (Ihovbor); 634MW Calabar; 513MW Omotosho; and 754MW Olorunsogo power plants
Investors have begun to send in Expressions of Interest for the five power plants worth billions of dollars, which Nigeria put up for sale.
Platforms Africa gathered exclusively, that over four bids (expression of interest) were made known barely 24 hours after the bids were announced.
The Board of Directors, Niger Delta Power Holding Company, NDPHC, and the National Council on Privatisation (BPE) have earleir approved the sale of the five generating companies in the country through a competitive bidding process.
“At least, four Expressions of Interest (EoI) have been made know barely 24 hours after the bids were announced. We only wish that this turn to the real bid. By and large, the pace at which EoI came in means that we are likely to have the race hot up,” a source at the Presidency, where BPE is domiciled, said in an exclusive chat with Platforms Africa.
He promised to give further details as the event unfolds and the “strengths and weaknesses of the bidders become clearer.”
This is coming even as the Bureau of Public Enterprises, BPE, has given conditions on how winners would emerge for the bids, calling on prospective investors to express interest in purchasing 100 percent shareholding.
The five power generation companies constructed under the National Integrated Power Project, NIPP, listed for sale are, according to BPE list made available to Platforms Africa, 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, Mr. 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.