FG targets $4.3bn from sale of 7 NIPP – Uduaghan

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The Federal Government will generate $4.3 billion from the sale of seven out of the 10 generating power plants being executed by the Niger Delta Power Holding Company (NDPHC).

Gov. Emmanuel Uduaghan of Delta made this known when he briefed State House correspondents on the outcome of a meeting of the Joint Transaction Board.

The boards comprise Board of the National Council on Privatisation (NCP) and the NDPHC, in the Presidential Villa, Abuja, on Friday.

Uduaghan, an NDPHC board member, said the amount would be generated from the sale of the plants to the preferred bidders of seven National Integrated Power Plants (NIPP), owned by the NDPHC.

He said the preferred bidder for Benin Generation Company was EMA Consortium with a bid of $580 million, while the reserved bidder was Index Consortium which bided $575million.

Similarly, EMA Consortium also won Calabar Generation Company with a bid price of $625million, as against Nebula Power Generation Consortium which bided $623.75 million.

He said Dozzy Integrated Power Limited won the Egbema Generation Company with a bid of $415. 08 million, while AITEO Condortium was the reserved bidder at $392 million.

Seoul Electric Power Limited, he added, won Geregu Generation Company with a bid of $690.2 million, while YellowStone Electric Limited was the reserved bidder at $613.1 million.

The Ogorode Generation Company was won by Daniel Poer Consortium at a bid of $532.78 million followed by ESOP Power Limited which offered $510 million.

Uduaghan said that the preferred bidder for Olorunsogo Generation Company was ENL Consortium Limited at bid price of $751.24 million while the reserved bidder was Index Consortium at $730 million.

“Omotosho Generation Company is Omotosho Electric Power at a bid of $659.9 million and ENL Consortium Limited which offered $645.15 million as the reserved bidder.’’

He said already the board under the chairmanship of Vice President Namadi Sambo had approved the sale of the affected plants to the preferred bidders.

He said that Sambo commended the successful conduct of the financial bid opening, which was conducted on March 7, at the Transcorp Hilton Hotel, and adjudged by all stakeholders as transparent.

The governor said that the vice president directed that the sale of the three other ower plants, namely Alaoji Generation Company, Omoku Generation Company and Gbarain Generation Company affected by litigation instituted by Messrs Ethiope Energy Limited should be stepped down, until the matter was resolved.

The Director-General of the Bureau for Public Enterprises, Benjamin Dikki, said the bid winners were required to provide an ‘Unconditional Bank Guarantee’ of 15 per cent of the offer.

According to him, the preferred bidders will provide the unconditional bank guarantee within 15 business days of official notification to them.

“The country is expected to rake in US$4.3 billion dollars at the conclusion of the privatisation process of the seven NDPHC power plants,’’ Dikki said.

Dikki said that the meeting also approved that notifications be issued to preferred bidders of each of the seven generation companies to submit the required 15 per cent bank guarantees within the following 15 business days.

“The meeting further approved that the legal actions to vacate the court injunctions in respect of the three other generation companies continue with vigour for expeditious dispensation.’

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