03 June 2013, Lagos — The Federal Government, weekend, disclosed that proceeds from the sale of 10 power plants across the country would be re-invested in the power sector.
Speaking at a forum in Lagos to herald the flag-off of its investment road show, Mr James Olotu, Managing Director/Chief Executive Officer, Niger Delta Power Holding Company Limited, NDPHC, owners of the National Integrated Power Project, NIPP, said the decision to re-invest the proceeds in the sector was to further boost the capacity of the country’s power infrastructure.
According to him, when collected from buyers of the power plants the money would be re-invested in the sector to boost power supply to all nooks and crannies of the country.
Olotu said: “This will unleash the huge potentials of Nigeria, leading to meaningful economic growth and development”.
He disclosed that the Federal Government is to sell 80 per cent of its stake in the power plants, as the remaining 20 per cent will serve to assure buyers of the plants of the safety of their investment and minimal government interference in the daily affairs of the companies.
Sale to be completed July 2014
Olotu said government plans to complete the sale of the power plants by July 2014, adding, however, that the plants would not be handed over to the buyers until they have been commissioned.
He expressed optimism that when privatised, the plants will be run in such a way as to attract further investment in the country’s power sector, as well as in other sectors of the economy.
He said, “the privatised firms will be run in such a way that will attract further investment in the sector. This is so because the buyers will testify to other potential investors of the transparency of the process and government’s commitment to the sanctity of contract among others.
He added that the Board of the NDPHC has considered various strategies available to it, as well as endorsed and approved recommendations of the consultants to the project and forwarded same to the Presidency who has given the go-ahead.
Also speaking, Arit Mohinddin, Transaction Adviser on Privatisation to NDPHC, said with the investment road show scheduled to kick off in Lagos, on June 4 and 5, 2013, the government would be wooing both local and foreign investors in Nigeria, London, Hong Kong and New York.
He noted that the road show was designed to attract credible investments which meet the necessary requirements, adding that its intention is to attract as many investors as possible.
The power plants the NDPHC plans to sell are the 750 mega watts Olorunsogo, phase II power plant in Ogun State; 451MW Ogorode power plant in Delta State; 225MW Gbarain power plant, near Bayelsa State; 1,07MW Alaoji power plant near Aba in Abia State and 451MW Ihovbor power plant in Edo state.
Others are the 561MW Calabar power plant in Nsit Nyong, Cross River State; 338MW Egbema power plant in Egbema Ohaji, Imo State; 434MW Geregu power plant in Ajaokuta, Kogi State; 500MW Omotosho power plant in Ondo State and 250MW Omoku power plant in Rivers State.
*Michael Eboh & Sebastine Obasi, Vanguard
