12 March 2014, Sweetcrude, Abuja – Only 80 per cent of shares in the 10 thermal power generation plants built by the Federal Government under the National Integrated Power Projects, NIPPs, are up for grabs, according to Mr. Atedo Peterside, chairman, Technical Committee of the National Council on Privatisation, NCP.
Peterside, who supervised the recent bidding process for 10 NIPPs offered for sale by the government, said the rest 20 per cent share-holdings in the companies are being retained by government.
A total of 42 companies were shortlisted for the purchase of the 10 NIPPs. The preferred and reserved bidders were selected recently, and they are now expected toproceed to the financial bids stage of the privatisation exercise.
As part of the financial bid process, a preferred bidder is expected, on approval of the NCP and the Niger Delta Power Holding Company, NDPHC, board, to pay 25 per cent of the total cost of a plant within 10 days of its selection and the balance paid in six months.
Following the bid evaluation, EMA Consortium emerged preferred bidder for Benin Genco with a bid opening of US$580 million, while Index Consortium is the reserved bidder with a US$575-million bid.
Calabar Genco also has EMA Consortium as preferred bidder with a bid of 625 million dollars and Nebula Power Generation Consortium as reserved bidder with a 623-million-dollar bid.
As for Egbema Genco in Imo State, ALTEO Consortium emerged as the preferred bidder with a 392-million-dollar bid and Dozzy Integrated Power Ltd as reserved bidder with 415 million dollars bid while for Gbarain Genco (Bayelsa), there were six bidders with KDI Energy Resources and Azikel Power Ltd emerging as preferred and reserved bidders respectively. KDI Energy Resources made a bid of 340 million dollars and Azikel Power Ltd, 305 million dollars to win the bid.
For Geregu Genco (Kogi), Seoul Electric Power Ltd emerged as preferred bidder with a 690-dollar bid and Yellow Stone Electric Ltd as a reserve bidder with 613 million dollars bid.
Daniel Power Consortium emerged the preferred bidder for Ogorode Genco (Delta) with a 531-million-dollar bid, while ESOP Power Ltd was the reserved bidder with 510 million dollars bid.
Olorunsogo (Ogun) Genco initially had five bidders but ALTEO Consortium pulled out and would therefore pay a fine of four million dollars as penalty. ENL Consortium became the preferred bidder with 751 million dollars bid and Index Consortium, the reserved bidder with 730 million dollars bid.
Also, Shayobe International Ltd Consortium is the preferred bidder for Omoku Genco in Rivers with a 318-million-dollar bid, while ALTEO Consortium emerged as reserved bidder with a 312.5-million-dollar bid.
The Omotosho Genco in Ondo State had the highest number of nine bidders, with Omotosho Electric Power emerging as preferred bidder with a 659-million-dollar bid and ENL Consortium as reserved bidder with 645 million dollars bid.
Overall, 66 companies initially applied to bid for the 80 per cent equity in the 10 power plants, but 42 companies were approved to take part in the exercise. The 10 power plant have a combined capacity of 5,034MW.