08 November 2013, Abuja – The Federal Government will today stop receiving bids for the 10 power plants being built under the National Integrated Power Project (NIPP). The project are being supervised by the Niger Delta Power Holding Company, NDPHC.
NDPHC Managing Director James Olotu said, Thursday in Lagos during the commissioning of some injection substations in Ikeja, the Lagos State capital, that he would ensure that due process, transparency and fair play are followed.
He said: “Tomorrow (today) I will be in Abuja to close the bid for those 10 power plants at 5.00pm. I will be there to ensure that all the rules and regulations for fair play and transparency needed are followed, to further ensure that the bidding process is not compromised.
“When we close the bid, we will be able to know how many people truly indicated that they want to buy. After that, we will give the bids to an evaluation committee, which comprises technical people, engineers, lawyers, accountants, representatives of the World Bank, among others.
“The process also will be monitored by the Nigerian Electricity Regulatory Commission (NERC), representatives of the Ministry of Power and NDPHC.”
The committee members, he said would work on the evaluation for the next two weeks. After the evaluation, the report will be taken to the NDPHC Board and owners of the companies. Upon their approval, the technical bid will be opened.
Olotu said the technical bid would ensure that the intending investors had ompetence, to manage the power plants they want to buy and not to buy and strip the assets thereafter and take the money away. After the technical bid, the financial bid, which is to ensure that the investors have the financial power to equip and sustain quality and efficient power delivery after takeover will be opened.
“We expect to finish everything by the end of January next year and announce the preferred bidders. We will give them about six months to gather all the money to pay for the assets they offered to buy,” he said.
Olotu said he had fruitful discussions with the new owners of Eko Distribution Company (DISCO), – West Power and Gas Company, and Sahara Energy, the majority shareholders in Ikeja DISCO.
“Our interactions during the meeting showed clearly that they are people of focus, determined to improve power efficiency in Nigeria. They are prepared to invest more in buying the right equipment that will ensure that power gets to the people, that is, the customers that they want to provide power for.
“We were able to join hands with them to commission four power injection substations in Eko and two in Ikeja. It was a wonderful interface and coming out with us made them see practically what is obtainable in the field and the challenges that they have to begin to worry about and to bring solutions to,” he added. Unlike the PHCN assets, 80 per cent shares of the NIPP plants will be sold.
The projected combined generation of NIPP assets is 5153.1megawatt (MW). Road-shows were conducted in Nigeria, United States, United Kingdom and some Asian countries to meet with prospective investors early this year.
– The Nation