No fewer than 82 companies have been requested to submit proposals for 10 power plants under the National Independent Power Plants, NIPPs, in the next round of Nigeria’s electricity privatisation programme.
In a statement obtained by Vanguard yesterday, the Bureau for Public Enterprises, BPE, said the decision was taken at the second joint meeting of the National Council on Privatisation, NCP, and the Board of the Niger Delta Power Holding Company Limited, NDPHC, which held last Monday, August 12.
The Bureau said NCP approved the pre-qualification of 386 expressions of interest, EOIs, submitted by 82 of the 110 consortia that earlier expressed interest in the acquisition of 80 percent equity in the 10 NIPP power plants jointly owned by the Federal, state and local governments.
According to the statement, signed by the Head of Public Communications of BPE, Chigbo Anichebe, “following the evaluation, 82 of the 110 submissions were successful and have been approved to continue to the Request for Proposal, RFP, stage.“The Joint Board, chaired by Vice President Namadi Sambo, equally approved the issuance of the request for proposals, RFPs, to the pre-qualified bidders from August 19.
“The Joint Board also approved the recommendation of the Joint Technical Transaction Committee, JTTC, to allow Technical Services Providers, TSP, with no equity stake in the consortia, to participate in the privatisation process with as many bidders as it chooses.”
Some of the consortia include, Omotosho Electric Energy Company, Sepco-Pacific Energy Partners Limited, PPN Power Generating Company Limited, AFC and Globeleg Consortium, AFC, Globeleg and Vogeo Consortium.Others are Spark Generation Power Company, Calls Power Consortium, Neon Electric Power Consortium, CET Power Consortium and Azura Benin Generation Consortium.
The number of EOIs for each of the 10 generation plants include: Gbarain Generation Company, 46; Benin Generation Company, 44; Omotosho Generation Company, 42; Egbema Generation Company, 41; Omoku Generation Company, 41 and Geregu Generation Company, 39.The others are Calabar Generation Company, 37; Ogorode Generation Company, 36; Alaoji Generation Company, 30 and Olorunsogo Generation Company, 30.
Recall that at the close of the deadline for the submission of EOIs by the prospective investors on July 19, about 110 consortia submitted expressions of interest.
Thereafter, two evaluation teams were constituted to evaluate the submissions based on the approved guidelines.The guidelines provided that to be technically qualified, bidders must show evidence of experience in operating at least 300Mw of thermal generation plant for at least three years and to be deemed financially qualified, meet a tangible net worth threshold of $100 to $200 million depending on the size of plant they wish to be pre-qualified for, among other requirements.
BPE and NDPHC are partners in the joint sale transaction process for the sale of the 10 power plants.
While NCP and BPE are legally authorised to sell Federal Government’s 47 percent shares, NDPHC has the authorisation of the states and local governments to sell 53 percent of their equities in the power plants.
Information from Vanguard was used in this report.