The 13 consortia that beat the
Wednesday’s deadline for the preferred bidders to pay the 75 per cent
balance of the bid prices for the 15 successor companies of the Power
Holding Company of Nigeria are set to take over the firms.
Sources at the Bureau of Public
Enterprises, who spoke with one of our correspondents under the
condition of anonymity on Wednesday, said 13 consortia succeeded in
making payment for the remaining 75 per cent before the 5pm deadline.
The successful consortia are: West Power
and Gas, the preferred bidder for the Eko Distribution Company;
NEDC/KEPCO, Ikeja Distribution Company; 4Power Consortium, Port Harcourt
Distribution Company; Vigeo Consortium, Benin Distribution Company;
Aura Energy, Jos Distribution Company; and Kann Consortium, Abuja
Distribution Company.
Others who met the payment deadline,
according to the source, are: Integrated Energy Distribution and
Marketing Company, the preferred bidder for both the Ibadan and Yola
Distribution Companies; Sahelian Power, Kano Distribution Company;
Transcorp/Woodrock Consortium, Ughelli Power Plc; Amperion, Geregu Power
Plc; Mainstream Energy Limited, Kainji Power Plc; and CMEC/EUAFRIC
Energy JV, which made part-payment for the acquisition of Sapele Power
Plc.
However, two of the intending investors failed to pay the balance as scheduled.
They are: Interstate Electrics
consortium, the preferred bidder for the Enugu Distribution Company,
whose members include Chief Emeka Offor’s Chrome Energy, Power House
International Limited and Metropolitan Electricity Authority of
Thailand; and North-South Power Company, the preferred bidder for the
Shiroro Power Plc.
The North-South consortium is made up of
the Niger State Government, XS Energy Limited, BP Investment Limited,
Urban Shelter Limited, Road Nigeria Plc, China International Water
Electric and China Three Gorges Corporation.
Going by the rules guiding the
privatisation process, the two firms have lost in their bid to acquire
the power assets as the reserved bidders will now be given the
opportunity to step up and acquire the companies upon the payment of the
bid prices.
Indeed, one of the reserved bidders,
Eastern Electric Company, said it was ready to take over the Enugu
Electricity Distribution Company following the failure of Interstate to
pay before the expiration of the deadline.
It said it was ready to pay $126m for
the takeover of the company, which provides power to the south-eastern
part of the country.
The failure of the two consortia to meet
the payment deadline, experts said, confirmed the concerns that a
number of the investors were finding it difficult to raise money from
their lenders.
Both companies had met the March 21,
2013 deadline for the payment of the mandatory 25 per cent of the offer
value of their bids by crediting the account of the Bureau of Public
Enterprises with $31.5m and $27,913,633.50, respectively.
The BPE had received a total sum of
$559,445,573.96 from all the preferred bidders as the 25 per cent of
their respective bid prices.
Until recently, the failure to meet the
deadline would have seen the forfeiture of the 25 per cent paid earlier.
However, the Head, Public Communications, BPE, Mr. Chigbo Anichebe,
told our correspondent said the rule had been reviewed.
He explained that the BPE would deduct
the cost of transaction from the 25 per cent initial payment and return
the balance to the defaulting preferred bidders.
Sources in the BPE said payments made by the preferred bidders had already been confirmed by the agency’s account department.
Our correspondents gathered that
NEDC/KEPCO consortia paid $101m as the 75 per cent outstanding balance
for the acquisition of the Ikeja Disco.
“We paid $96.75m today (Wednesday),”
the Chairman, Vigeo Consortium, Chief Gbolade Osibodu, told one of our
correspondents on telephone.
Similarly, the Chairman, West Power
& Gas Limited, the preferred bidders for the Eko Disco, Mr. Charles
Momoh, said the company had finalised the payment for the acquisition of
a 60 per cent stake in Eko Disco ahead of the deadline.
He said the balance payment of $101.25m
was made two days ahead of the BPE deadline; adding that this followed
the payment of the initial 25 per cent deposit of $33.75m earlier in
March, bringing the total transaction value to $135m.
Momoh said, “To date, WPG has raised
close to $500m in equity and debt financing to fund the acquisition of
the Eko Disco and the significant rehabilitation and transformation work
required to improve distribution network infrastructure and operations.
“Out of this, $250m has been allocated
to rehabilitation, while the company has allocated a further $48m
towards a power purchase agreement with the Nigerian Bulk Electricity
Trading Plc.
“Today marks a tremendous milestone and a
major step forward towards the completion of the most significant
privatisation of government assets in Nigeria’s history. The success of
the power transformation programme is critical to the future development
of Nigeria.
“WPG, along with the other preferred
bidders, fully appreciate the magnitude of the task before us and are
honoured to have been selected. As a sector, we must work together to
ensure we achieve the desired results.”
Eastern Electric Company, the reserve
bidder for the Enugu Disco, said in a statement by its Communication
Consultant, Mr. C. Don Adinuba, said it would not have difficulties
raising the funds needed for it to take over the power firm.
The consortium was formed by the five
South-East state governments; Nestoil, an indigenous operator in the
upstream sector of the Nigerian petroleum industry; Aba Power Limited;
Geometric Power Limited, led by the former Minister of Power, Prof. Bart
Nnaji; and the founding Chairman of Diamond Bank Plc, Mr. Pascal Dozie.
Other members of the consortium are
NRECA of the United States, which operates in Latin America, Pakistan,
Sudan and Bangladesh, and controls 10 per cent of the US’ one million
megawatt grid; and the NETGroup of South Africa, which operates the
Tanzanian power system and maintains a significant presence in South
Africa’s electricity business.
Adinuba said, “We have a robust and
matchless combination of global best practices and the best experience
of emerging economies. We shall not have difficulty raising the funds.
The Bureau of Public Enterprises is still holding on to our $10m bank
bond raised when we were bidding for the Enugu Disco.
“As all Nigerians must have known, the
141MW Aba integrated power project built by Geometric Power and which
cost over $450m is about to be inaugurated.”
The Minister of Power, Prof Chinedu
Nebo, had shortly after the Federal Executive Council meeting expressed
the hope that the bidders would meet the deadline as many of them had
responded positively as of Tuesday.
He said, “As many of you already are
aware, today (Wednesday) is the last day for the payment of the 75 per
cent of the remaining amounts of the money owned by the preferred
bidders for the generating and distribution companies that have been
privatised.
‘‘And I am very happy to announce to you
that we are getting very positive results that many of these Gencos and
Discos are living up to expectations.’’
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