The Bureau of Public Enterprises (BPE) has assured prospective investors that the sale of five National Integrated Power Plants (NIPPs) will go on as planned.
Speaking with journalists on Monday, Alex Okoh, BPE director-general, said the privatisation of the five NIPP plants was in line with the bureau’s 2021 workplan as approved by the National Council on Privatisation (NCP), which would be strictly adhered to.
The five NIPP plants are: Benin Generation Company Limited at Ihovba, Edo state; Calabar Generation Company Limited, Cross River state, Geregu Generation Company Limited, Kogi state, Olorunsogo Generation Company Limited, Ogun state and Omotosho Generation Company Limited, Ondo state.
According to a statement by Amina Tukur Othman, head of public communications at BPE, Okoh said based on the approval of the NCP, the bureau engaged the services of a technical adviser and advertised for the expression of interest (EOI) in three national dailies on May 6, 2021
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He said the BPE has so far received 36 EOIs as at the close of the advertised period for the preparation of the EOIs.
Giving the background to the privatisation process of the plants, Okoh said the initial process was for the ten NIPP plants which commenced in 2012 and that by November 2013, bidders had submitted technical and financials proposals for their privatisation.
“In the Request for Proposal (RfP), the bidders were informed that they would be required to pay the full purchase consideration for the acquisition of 80% equity in the NIPP generation companies”, he said.
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According to him, an approval was given through the Niger Delta Power Holding Company (NDPHC) in February 2016, to proceed with a phased implementation of the programme by negotiating with the Preferred bidders of the four NIPP generation companies with the least challenges.
The BPE DG explained that the transaction was eventually stalled largely due to the liquidity challenges in the power sector, amongst other factors.
He said with the earlier termination of the NIPP transaction in accordance with the provisions of the RfP, the bureau after securing the approval of the NCP of its 2021 workplan, subsequently presented a memo to the council at its 2nd meeting for the year 2021 held on April 22.
The memo was to secure approval for the transaction as well as an expedited transaction process, which the council granted.
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Okoh further said that the NDPHC on its part had, in a letter dated April 7, notified the bureau of the approval at its 45th board meeting held on April 1 for a joint termination of the previous (2013) privatisation process, this also included the approval to commence the re-privatisation of the plants.
The statement noted that the President Muhammadu Buhari’s administration is determined to resuscitate the power plants to put them to full use for the much needed power needs of the people and growth of the nation.
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