BPE, PHCN investors fine-tune takeover

bpe_board02 September 2013, Abuja – The National Council on Privatisation, NCP, and investors in the Power Holding Company of Nigeria, PHCN, distribution and generation companies will today discuss modalities for the handover of the entities.

Ten distribution companies and five generation companies on August 21 concluded their payment for the power firms – in line with the NCP’s power sector privatisation dateline .

The companies are: West Power and Gas; NEDC/KPECO; 4Power Consortium; Vigeo Consortium; and Aura Energy.

Others are: Integrated Energy Distribution and Marketing Company; Sahelian Power; Transcorp/Woodrock Consortium; Amperion; Mainstream Energy Limited; Kainji Power Plc and CMEC/EUAFRIC JV.

On the agenda is PHCN workers’ severance package.
The meeting, which is coming barely two weeks after the firms paid their remaining 75 per cent bids price, will also discuss how the operators will avoid the obstacles that have affected the growth of the sector in recent times.

“Following its power sector privatisation timeline, the NCP is still maintaining October as its handover period. Although the investors have paid the balance of 75% for the entities, the Federal Government will clear all liabilities before releasing the plants to the new owners. Therefore, the issue of handover will be in October as stated in the dateline,” said an NCP source.

Minister of Power Prof. Chinedu Nebo last week said the Federal Government would this week begin the handover of the privatised power plants to their new owners.

Speaking at a forum organised by the Operator of the Nigerian Electricity Market, ONEM, last Wednesday in Abuja, Nebo said : “We congratulate our brothers and sisters who have galvanised to invest in the power assets; this is an example of the Nigerian resilience. We hope to sign off protocols to handover the assets to the new owners next week, this shows that the NESI is going in for a big explosion.”

The minister added that the Federal Government last week recorded 70% payment of severance package to PHCN employees.

The ministry has always explained that the power sector has the capacity for generating 10,000 megawatts, the transmission grid is weak to wheel the generated power for supply to consumer.

In preparation for the handover, the minister last week met with the reconstituted board of the Transmission Company of Nigeria, TCN, to boost electricity transmission in the country.

Presenting the electricity expansion plan of the company, the Chief Executive Officer, Mr. Don Priestman, noted that the company will design a plan for the transmission of 10,000mw in 2013.

He said: “For the purpose of this preliminary exercise therefore, the starting point will be the available generation which must be evacuated.

– The Nation

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