21 November 2017, Sweetcrude, Abuja – Bidders for the three electricity generation companies (Gencos) built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Projects (NIPPs) have proposed to the Federal Government cash payment of 30 percent equity and 70 percent debt equity as negotiation for the privatization of the power plants continues.
The Managing Director of NDPHC, Engr. Chiedu Ugbo, explained that the exercise was in continuation of the 2013 NIPP privatization that saw to the successful bids for the 80 percent equity in the 10 power plants at $5.736bn.
There are 5 power plants shortlisted for immediate privatization by the Federal Government which include Calabar, Omotosho, Egbema, Gbarain and Geregu plants.
The five bidders with their offers, EMA Consortium, as preferred bidder with a price of $625m for Calabar Generation Company, Dozzy Integrated Power with $415.7m offer for Egbema Generation Company, Seoul Electric Power Limited for Geregu Generation Company with a bid price of $690.2m, KDI Energy Resources for Gbarain Power plant with an offer of $340m and Omotoso plant with $659.9m by Omotosho Electric Power.
Ugbo said, “We are still negotiating with the buyers. The privatization challenges such as liquidity problems, inadequate gas supply, as well as microeconomic issues, had a significant impact on the privatization process since the emergence of the bidders on March 7, 2014. But we are negotiating with them.”
According to him, the next stage immediately after the emergence of the preferred bidders for the 10 plants would have been submission of their guarantee which, he said, they did at a time and commenced negotiation with them to finalise the payment structure, but that unfortunately, NDPHCN were yet to execute the agreement because of numerous issues that came up around 2015 and 2016.