A Review of the Nigerian Energy Industry

Oando, Honeywell, Vigeo, 18 others to bid for 10 PHCN discos

19 September 2012, Sweetcrude, ABUJA – THE the National Council on Privatisation, NCP, have prequalified 21 companies, among them Oando Consortium, Vigeo Holdings, Honeywell Energy Resources International Limited and Integrated Energy Distribution and Marketing Limited, to have their financial bids opened for the 10 distribution companies, known as discos, created from the unbundling of the Power Holding Company of Nigeria, PHCN.

At a meeting Tuesday, NCP, presided over by its chairman, Vice-President Namadi Sambo, approved them for the exercise billed to hold on October 10 in Abuja.

NCP said two companies – Skipper Nigeria Limited and NAHCO Power Limited – which had submitted bids for Kaduna Distribution Company, were not prequalified to move on to the next stage of the privatisation exercise.

According to NCP, their bids failed because they were technically not qualified and directed the Bureau of Public Enterprises, BPE, to invite fresh bids from all the prequalified bidders in accordance with Plan B in respect of the privatisation of any unsold successor company.

The new invitation for the fresh bids will come from all the shortlisted bidders that paid the required $20,000 fee for the bid documents.

Sambo, alongside a member of the NCP and chairman of its Technical Committee, Atedo Peterside, Minister of State for Power, Darius Ishaku, and the BPE Director General, Ms. Bolanle Onogoruwa, said the October financial bid process would have all the 10 discos participating.

The meeting approved 10 companies to bid for Ikeja Disco. They are: Honeywell, Oando, Western Consortium, Integrated Energy, Amperion Power Distribution Company Limited, Vigeo Holdings, Gumco, African Corporation AFC & CESC, Kepco/NEDC Consortium, West Power and Gas, and Rockson Engineering Limited.

For Eko Disco, six companies were prequalified comprising Oando, Integrated Energy, Sepco-Pacific Energy Consortium, Honeywell Energy, Kepco/NEDC, and West Power and Gas.

Three bidders, Western Consortium, Integrated and Kepco/NEDC Consortium, were approved to bid for Ibadan Disco.

As for Abuja Disco, Kann Consortium Utility Company Limited and Interstate Electrics Limited made the cut-off mark, while four companies – Rensmart Power Limited, Proglobal Power International Consortium, Interstate Electrics Limited and Eastern Electric Nigeria Limited – were prequalified to bid for Enugu Disco.

Also, Aura Energy Limited made the cut-off mark to bid for Jos Disco; Sahelian Power SPV Limited was prequalified for Kano Disco; Power Consortium and Rockson Engineering Limited were prequalified for Port Harcourt Disco; while Integrated Energy was the sole bidder prequalified for Yola Disco.

Four companies were also prequalified to have their financial bids opened for Benin Disco. They are: Southern Electricity Distribution Company, Rensmart Power Limited, Vigeo Power Consortium and Rockson Engineering Limited.

On the five generation companies (gencos) also being privatised, Peterside said the seven firms that had scaled the prequalification hurdle for the generation assets would have their financial bids on September 25 in Abuja.

The power plants that will be put on the block that day are Ughelli, Sapele, Geregu, Kainji and Shiroro.
He said the seven firms for the gencos had emerged victorious having attained 750 and above, which was the minimum score established for the technical bid process.

Peterside also stated that the criteria used for the selection of the seven firms included track record, financial capacity and technical expertise.

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