Handover of PHCN successor firms will be delayed – Report

Minister-of State for Power, Zainab-Kuchi28 August 2013 – The handover of the 15 unbundled generation companies, Gencos, and distribution companies, Discos, of the Power Holding Company of Nigeria, PHCN, to the new owners will not happen soon even after conclusion of full payment as at the close of work last Wednesday, Daily Trust has learnt.

Industry sources said that the handover will not be soon due to the inability of government to conclude payments of the severance packages of the former (PHCN) workers.

The sources who didn’t want to be named, said due to the huge amounts involved (over N300 billion), it will not be economically wise for government to release the money at once.

“Because of the huge amount involved, government can’t release the fund at once, it is batch by batch and that will take some time to be concluded,” the source said.

Already, the new owners have made their decision known at a meeting with the power minister recently that they will not take over the companies unless all labour issues are resolved.

The source added that there are series of meetings currently going on between the new owners and the privatisation officials including power ministry officials.

Minister of Power, Prof. Chinebu Nebo in a brief on Monday confirmed that the hand over was yet to take place but assured that government was working it out.

Nebo lauded the compliance of the 15 power firms in paying up their 75% balance, adding that full possession will be handed over to the preferred bidders as soon as they are entitled to the facilities upon completion of payment.

Preferred bidders last week battled to pay up the 75% completing balance before the Long Stop Date which elapsed at the close of work last Wednesday. The successful firms taking over the five Gencos and 10 Discos include Amperion Power Company Limited (Geregu Genco), Mainstream Energy Solutions (Kainji Genco), CMEC/EURAFRIC (Sapele Power Plc), North-South Power Company (Shiroro Hydro Power Plc), and Transcorp/Woodrock/Symbion/Medea/PSL/Thomassen (Ughelli Power Plc)

Among the Discos were: Integrated Energy Distribution and Marketing Company (Ibadan and Yola Discos), West Power and Gas (Eko Disco), KANN Consortium Utility Company Ltd (Abuja Disco), and Vigeo Consortium (Benin Disco).

Others are, Interstate Electrics Ltd (Enugu Disco), NEDC/KEPCO (Ikeja Disco), Aura Energy Ltd (Jos Disco), Sahelian Power SPV Ltd (Kano Disco), and the 4Power Consortium (Port Harcourt Disco).

– Daily Trust

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