Chigbo-Anichebe-360x225There are indications that the Bureau of Public Enterprises (BPE) will today, release licences to seven of the 10 National Integrated Power Projects (NIPP) estimated at N1.2 trillion, which have been put up for sale by the Federal Government.

It was learnt at the weekend that licences would be presented today to the Niger Delta Power Holding Company and Transmission Company of Nigeria (TCN).

According to sources, the power plants to receive licences are Calabar Generation Company Limited; Benin Generation Company Limited; Egbema Generation Company Limited; Gbarain Generation Company Limited; Geregu Generation Company Limited; Omoku Generation Company Limited and Omotosho Generation Company Limited.

Over 200 investors have commenced moves to acquire the power plants.

Sources in the Ministry of Power, however, confirmed that the 10 power plants cost  over $8 billion (about N1.2 trillion) at completion, indicating that the government would be expecting far beyond that expenditure from the sale of the plants.

The privatisation of the NIPP projects may have become the most prominent concern for the Federal Government recently.

It was also gathered that high profile meeting and deliberations have continued in the presidency, in order not to leave any stone unturned in the privatisation process, as the second leg of the road show begins on Wednesday June 12, at the Intercontinental Park Lane Hotel, London.

The agency plans to further take the campaign to Hong Kong (June 19-20); New York City (June 26-27) accordingly.

Minister for Power, Chinedu Nebo, confirmed at the weekend that a meeting of the National Council for Privatisation and other key stakeholders was held in Abuja on Friday.

Although, Nebo did not define the real strategies to adopt as at press time, he said the privatisation of the NIPP was of key interest to President Goodluck Jonathan, which should not be allowed to fail.

He did not comment on the expected income from the planned sale, but the Managing Director, Niger Delta Power Holding Company (NDPHC) James Olotu, said the project could not be sold under the value for construction, rather, it would be re-evaluated in order to know the current value for the offer.

He said the agency, in conjunction with the BPE along with the transaction advisers have  commenced due diligence and  evaluation of the NDPHC assets to ascertain their current value, while arrangements have been made to create valuable incentives to encourage the would be investors.

 

Information from The Guardian was used in this report.

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