42 firms named to buy 10 NIPP thermal plants

Professor Chinedu Nebo

Professor Chinedu Nebo, Minister of Power

06 March 2014, Abuja – The identities of 42 bidders that are technically qualified to proceed to the next phase of the planned sale of 10 thermal power generation plants built under the National Integrated Power Projects (NIPPs) were Wednesday made known by the Niger Delta Power Holding Company (NDPHC) Plc and its transaction advisers, CPCS Transcom International Limited.

The final list of the 42 firms contained some notable names like AITEO Consortium and Bresson Consortium especially in Nigeria’s energy services sector but it was learnt that they were initially made up of 52 bidders.

THISDAY gathered that the list was however pruned down to 42 at the combined meeting of the board of the NPDHC and National Privatisation Committee (NCP) last Friday in Abuja following observations allegedly made by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on the corporate character of some of the bidders.

It also observed that none of the new owners of the successor generation and distribution companies of defunct Power Holding Company of Nigeria (PHCN) was shortlisted to participate in the next phase of the NIPP privatisation exercise, although it is not clear if any of them is part of the prequalified consortium.

As it was disclosed in the list that was obtained by THISDAY from the NDPHC and CPCS Transcom International Limited, bidders shortlisted to proceed to the financial bids stage of the privatisation exercise include: AITEO Consortium for Alaoji Generation Company Limited; Index Consortium, EMA Consortium and Bolivar Consultant for Benin Generation Company; EMA Consortium, Nebula Power Generation Consortium and First Imperial Power Consortium for Calabar Generation Company, as well as AITEO Consortium, Dozzy Integrated Power Limited and Essential International Limited Consortium for Egbema Generation Company.

Others are Azikel Power Limited, EMA Consortium, Tempo Energy Consortium, ESOP Power Limited, KDI Energy Resources and CET Power Consortium for Gbarain Generation Company; Yellowstone Electric Limited, Index Consortium, Power Ventures Consortium, EMA Consortium and Seoul Electric Power for Geregu Generation Company.

Also bidding for Ogorode Generation Company are Daniel Power Consortium, AITEO Consortium, ESOP Power Limited and Tempo Energy Consortium; Index Consortium, Cyrex Energy Consortium, ENL Consortium Limited, Sepco-Pacific Partners Limited and AITEO for Olorunsogo Generation Company.

For Omoku, DFC Alliance Energy Limited, Shayobe International Limited Consortium and AITEO Consortium have been shortlisted, while Index Consortium, Bresson Consortium, ENL Consortium Limited, EMA Consortium, CET Power Consortium, AVS Power, Omotosho Electric, Nebula Power Generation Consortium and Worley Parsons/Arrow Capital are up for Omotosho Generation Company.
A source in the presidency who is privy to internal proceedings in the privatisation exercise, confirmed that it was the  observation made by Okonjo-Iweala on the corporate character and integrity of some of the bidders that prompted the decision of the board to review and prune the number of the bidders from 52 to 42.

The presidency source hinted that one of the affected bidders was Rockson Engineering, which was contracted to build about four of the NIPP plants at Alaoji, Egbema, Gbarain and Omoku.
It was learnt that the company’s alleged delay in completing these power plants contracted to it had counted against it in the bidding process. The source equally hinted that its promoters might have petitioned President Goodluck Jonathan on the development.

The NCP and the governing board of the NDPHC have also approved tomorrow (Friday) for the opening of the financial bids of the 42 pre-qualified bidders contesting to acquire 80 per cent equity in the 10 NIPP thermal electricity plants.

Rising from its third joint meeting on February 28, the NCP had directed that the bids be opened on the scheduled date in keeping with the published timeline for the transaction.
The joint meeting, which was chaired by Vice-President Namadi Sambo also affirmed that the 42 bidders, which had been pre-qualified, met the set criteria  in the requests for proposal (RFP) and passed the due diligence verification conducted on technically qualified bidders.

 

– Chineme Okafor, This Day

About the Author