A Review of the Nigerian Energy Industry

Nigeria targets $2.6bn revenue from sale of PHCN assets

bpe_board19 April 2013, Abuja – The Bureau of Public Enterprises, BPE, has said that the Federal Government will earn over ($2.6 billion)(N413.4 billion) from the sale of power assets in the 2013 fiscal year.

BPE said potential core investors in 15 of the successor power companies created from the unbundling of the Power Holding Company of Nigeria, PHCN, have already paid $559.45m to the Federal Government as at the deadline date of Thursday, March 21, 2013.

The agency said in a publication that the amount represents only 25 per cent of the total sum, which the government expects from the sale of the 15 power companies.

BPE, which is in charge of the privatisation process, also stated that the transaction process of the two remaining successor companies – Afam Power Plc and Kaduna Distribution Plc are currently on going.

The potential core investors, BPE said, are expected to pay the 75 per cent balance of the bid valued of the assets in the next six months.

The BPE said it is expecting to receive $31million from 4Power Consortium for Port Harcourt Distribution Company; $31.5 million from Interstate Electrics Limited for Enugu Distribution Company; and $27,913,633.50 from North -South Power Company for Shiroro Power Plc on March 21, 2013.

According to BPE, these amounts represent the mandatory 25 percent bid value for the companies.

It said the following companies had earlier made payments: Vigeo Consortium, the preferred bidder for Benin Distribution Company, had paid USD $32.25million; Transcorp/Woodrock Consortium, the preferred bidder for Ughelli Power Plc ($75 million); CMEC/EUAFRIC Energy JV, the preferred bidder for Sapele Power Plc ($50,249,965); Kann Consortium, the preferred bidder for Abuja Distribution Company ($41 million); Aura Energy, the preferred bidder for Jos Distribution Company ($20,464,968.15); Mainstream Energy Ltd, the preferred bidder for Kainji Power Plc ($59,467,500); and Sahelian Power SPV, the preferred bidder for Kano Distribution Company ($34.25million).

Other payments are: Amperion Power Company Limited, the preferred bidder for Geregu Power Plc ($33 million); Integrated Energy Distribution & Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies ($42.25 million and$14.75 million for Ibadan and Yola Discos respectively); NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company ($ 32.75 million); and West Power & Gas, the preferred bidder for Eko Distribution Company ($33.75 million).

The 18th successor company, the Transmission Company of Nigeria is slated for Management Contract to Canadian power firm, Manitoba Hydro, and this has been generating several controversies.

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