|Energy Roadshow session|
The Bureau of Public Enterprises said it has received bids from prospective investors for the sale of the Kaduna disco and the Afam power plant which were left behind in the first phase.
The process which started since the administration of former President Olusegun Obasanjo now looks set for its final phase.
The buyers have expressed readiness to pay up the 75 percent balance. Speaking at the transaction signing ceremony with investors on Monday, chairman of Transcorp Plc, the preferred bidder for the Ughelli Power Plc, Tony Elumelu said they were ready to pay up the balance to take possession of the firms.
The generation companies are; Geregu power plc with Amperion as preffered bidder, Kainji HydroPower Plc with Mainstream as preffered bidder, Sapele power Plc with CMEC/EURAFRIC as preffered bidder, Shiroro Hydro Power Plc with North-South as preffered bidder and Ughelli power Plc with Transcorp/Woodrock/Symbion/Medea/PSL/Thomassen as preffered bidder.
The discos include; Abuja Distribution Company Plc, Benin Distribution Company Plc, Eko Distribution Company Plc, Enugu Distribution Company Plc, Ibadan Distribution Company Plc, Ikeja Distribution Company Plc, Jos Distribution Company Plc, Kano Distribution Company Plc, Port Harcourt Distribution Company Plc, and Yola Distribution Company Plc.
The federal government is expected to garner about N400 billion from the power sector privatization. The investors are expected to inject the necessary fund, vibrancy and competitiveness into the sector, qualities which have been absent in government’s decades of ownership.
A couple of hurdles remain to be crossed to achieve the 30, 000mw of electricity projection by the government by 2020.
The preferred bidders have so far shown strong financial commitment to acquire the PHCN unbundled assets. Only time will tell if they have the technical and managerial capacity to transform the sector.
Nigerians have good reasons to be apprehensive of what the future holds given the sour taste that remain in their mouth from the disputed sale of many state enterprises in the past including the Nigerian Telecommunications Limited (NITEL), Daily Times Plc, Ajaokuta steel and a host of others.