15 companies take over unbundled PHCN firms

PHCN23 August 2013, Abuja – The unbundling of the Power Holding Company of Nigeria, PHCN, has been completed.

Ten Distribution Companies, DISCOs, and five Generation Companies, GENCOs, have been handed the successor companies that rose from the balkanisation of the defunct PHCN.

The companies are those which completed the payment of the 75% balance on their bid price for the companies.

Minister of Power Professor Chinedu Nebo said by Wednesday night deadline, all preferred bidders had paid up, except the Enugu Distribution Company, while the preferred bidder for Sapele Power Station had made substantial part-payment.”

He spoke in a statement by his media assistant Kandel Daniel.

The statement said: “The completion payment now entitles the preferred bidders to take full possession of the 15 PHCN unbundled entities (10 Distribution companies and five Generation companies),” the statement said.

Nebo described this development as a great milestone in the Power Sector Reform Roadmap that should give hope to all Nigerians, and inspire confidence in government’s power reform programme and President Goodluck Jonathan’s Transformation Agenda.

The Minister said he would soon formally declare open the Transition Electricity Market, to enable the investors commence business in earnest and further drive the process.

Professor Nebo also reassured Nigerians and investors of government’s resolve to pursue the transformation agenda to the end, and monitor the emerging transition market, in order to protect the interest of both the citizens and the investors.

He said the stability of the national grid was being enhanced to ensure effective transmission of any quantity of power being generated in the new dispensation.

According to the Power Minister, efforts are on to provide more electricity off-grid, especially for the rural areas, while also sustaining subsidy for low income electricity consumers in the nation’s tariff structure.

The new owners paid $2.238 billion.

The successful consortia are: West Power and Gas, the preferred bidder for the Eko Distribution Company; NEDC/KEPCO, Ikeja Distribution Company; 4power Consortium, Port Harcourt Distribution Company; Vigeo Consortium, Benin Distribution Company; Aura Energy, Jos Distribution Company; Kann Consortium, Abuja Distribution Company; Integrated Energy Distribution and marketing Company, the preferred bidder for the Ibadan and Yola Distribution Companies; Sahelian Power, Kano Distribution Company; Trancorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy Limited, Kanji Power Plc; and CMEC/EUAFRIC Energy JV, which made the part-payment for the acquisition of Sapele Power Plc.

– John Ofikhenua, The Nation

About the Author