Power: FG approves take-over by investors

PHCN27 August 2013, Abuja – The Federal Government has given the nod for the preferred bidders to take full possession of the 15 Power Holding Company of Nigeria, PHCN successor companies, following substantial compliance recorded in payments by the investors at the expiration of the deadline last Wednesday.

The Minister of Power, Prof. Chinedu Nebo, said in Abuja that the Federal Government recorded substantial compliance in payments by the preferred bidders for the sale of the PHCN companies under a globally acclaimed power privatization programme.

By the close of transaction by 5pm on Wednesday, all the bidders had paid up, except for the Enugu Distribution Company, while the preferred bidder for Sapele Power Station had made substantial part-payment.

He said the completion payment now entitles the preferred bidders to take full possession of the 15 PHCN unbundled entities, which include 10 Distribution companies, DISCOs, and five Generation companies, GENCOs.

Nebo, upon confirmation that the investors had met the August 21, 2013 deadline, described the exercise as a great milestone in the Power Sector Reform Roadmap, which should give hope to Nigerians, and inspire confidence in government’s power reform, and President Jonathan’s Transformation Agenda.

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

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 citizenry 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 him, “Efforts are also 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.”

– Chris Ochayi, Vanguard

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