Home / Olorunsogo / FG To Realise $5.8bn From Sale Of 10 NIPP Plants

FG To Realise $5.8bn From Sale Of 10 NIPP Plants

The federal government will rake in a total of $5, 814, 002, 617 from the sale of the 10 power plants under the National Integrated Power Project (NIPP).
Bidding for the 10 plants opened in Abuja yesterday in an event co-hosted by the Niger Delta Power Holding Company Ltd (NPDHC) and the Bureau of Public Enterprises (BPE).

The NIPPs, which are being managed by the NDPHC and jointly owned by the federal government, 36 state governments as well as local governments of the federation, will add an additional 5,454mw of electricity to power generation capacity.

The 10 power plants include the 434mw Geregu 11, Calabar 630mw, Egbema 378mw, Ihorvbor 504mw, Gbarain 252mw, Ogorode 504mw, Omoku 252mw, Alaoji 1,076mw, Olorunsogo 750mw and the 500mw Omotosho plant.

Already Omotosho and Geregu II have been commissioned and are supplying power to the national grid while others are either awaiting commissioning or at near-completion stage.

The bids were opened and announced by the chairman of the Joint Transaction Technical Committee (JTTC), Governor Gabriel Suswam, and the chairman, National Council of Privatisation Technical Committee, Peterside Atedo, who were supported by the director-general of BPE, Benjamin Dikki, and NPDHC managing director James Olotu.

At the end of the opening, Seoul Electric Power emerged the preferred bidder for Geregu II with a bid of $613,111,113, while YellowStone Electric Power emerged reserved bidder with a bid of $613,111,113. Similarly, Ihorvbor had EMA Consortium and Index Consortium as preferred and reserved bidders having bid $580 million and $575 million respectively.

EMA Consortium emerged preferred bidder for Calabar with Nebula Power Generation Consortium as reserved bidder with bids value of $625 million and $623 million respectively, while Dozzy Integrated Power Ltd emerged preferred bidder for Egbema with a bid of $415,075,000 with AITEO as reserved bidder having bid $392 million.

Gbarian had KDI Energy Resources as preferred bidder with a bid of $340 million and Azikel Power Ltd and reserved bidder with a bid of $305, 090,665, while Daniel Power was preferred bidder for Ogorode with $531,777,777 bid and ESOP as reserved bidder with a bid of $510 million.
Shynobe International Ltd emerged preferred bidder for Omoku with $ 318,710,840, and AITEO Consortium as reserved bidder with a bid of $312, 500, 000, while AITEO consortium, the sole bidder for Alaoji, emerged preferred bidder with a revised bid of $902 million after its initial bid of $680 million was said to be below the reserved price.

ENL Consortium and Index Consortium emerged preferred and reserved bidders for Olorunsogo after bidding $751,240,000 and $730 million respectively while Omotosho Electric power is preferred bidder for Omotosho plant after bidding $659,999,000 and ENL as reserved bidder with a bid of $645,156,220.

Meanwhile, the least bid received in all categories was from EMA Consortium which bid $515 (five hundred and fifteen dollars) for Omotosho power plant, while AITEO Consortium which withdrew its bid for Olorunsogo will forfeit its $1 million bid security.

In his remarks, Governor Suswam emphasised that the privatisation process had been transparent as part of government’s efforts to rekindle investors’ confidence in Nigeria, adding that the deadline for the bid payment will be announced after the meeting of the NDPHC Board.
The BPE DG emphasised that all participants were given a fair chance, noting that with the completion of the NIPP privatisation, the management of all power plants in the country will now be in the hands of the private sector.

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Culled from :Here

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