Government to realise $4.3billion from sale of seven power plants.
The Federal Government on Friday confirmed the preferred bidders for seven of the 10 power plants owned by the Niger Delta Power Holding Company, NDPHC, executed under the National Integrated Power Plants, NIPP.
Delta State governor, Emmanuel Uduaghan, at the end of Joint Transaction Board meeting of the of the National Council on Privatisation, NCP and the NDPHC in Abuja, said the government hopes to realize about $4.3 billion from the sale of the seven power generating plants.
Confirmation of the successful bidders for the other three plants would be delayed till ongoing litigations against their bids were resolved, he said.
Mr. Uduaghan announced the confirmation of EMA Consortium as the preferred bidder for Benin Generation Company with a bid of $580 million, while the reserved bidder was Index Consortium, which bided $575 million. The governor said EMA Consortium was also the preferred bidder for Calabar Generation Company with a bid price of $625million, as against Nebula Power Generation Consortium, which emerged the reserved bidder with an offer of $623.75 million.
Dozzy Integrated Power Limited was confirmed the preferred bidder for Egbema Generation Company with a bid of $415.7 million dollars, while AITEO Consortium was named the reserved bidder with an offer of $392 million.
Seoul Electric Power Limited, was confirmed the preferred bidder for Geregu Generation Company with a bid of $690.2 million, with YellowStone Electric Limited as the reserved bidder with $613.1 million.
Similarly, Mr. Uduaghan said Ogorode Generation Company had Daniel Poer Consortium as the preferred bidder with a bid of $532.78 million, followed by ESOP Power Limited as reserve bidder with an offer of $510 million.
Mr. Uduaghan said that the preferred bidder for Olorunsogo Generation Company was ENL Consortium Limited, which bidded $751.24 million dollars, with the reserved bidder as Index Consortium, which offered $730 million.
He named Omotosho Electric Power as the preferred bidder for Omotosho Generation Company with a bid of $659.9 million, while the reserved bidder was ENL Consortium Limited, which offered $645.15 million.
Already, the board, under the chairmanship of the Vice President, Namadi Sambo, had approved the sale of the affected plants to the preferred bidders following a successful financial bids opening exercise conducted on March 7, 2014.
The governor said the sale of Alaoji Generation Company, Omoku Generation Company and Gbarain Generation Company have been stepped down until the litigation instituted by Messrs. Ethiope Energy Limited against their bids were resolved.
AITEO Consortium, which was the sole bidder for Alaoji, had offered $902 million during the financial bids opening exercise, while Shayobe International’s bid of $318.7 million was declared the winner as against the $312.5 million offer by AITECO Consortium as the reserve bid.
KDI Energy Resources was the lead bidder for Gbarain Power plant with an offer of $340 million, with the reserve bid by Azikel Power Limited for $305.09 million.
The Director-General of the Bureau for Public Enterprises, BPE, Benjamin Dikki, said the bid winners were required to provide an Unconditional Bank Guarantee of 15 per cent of the offers within 15 business days of official notification to them.
He said the Federal Government hopes to realize about $4.3 billion at the conclusion of the privatisation process of the seven NDPHC power plants.
Mr. Dikki said the meeting had approved that all pending legal actions be given accelerated attention to vacate the court injunctions in respect of the three other generation companies. NAN