Govt Rakes In N304bn From Sale of Power Assets

An estimated N304.82 billion was paid to the federal government last week when 14 of the preferred bidders who won the bids for the distribution companies created from the unbundling of Power Holding Company of Nigeria (PHCN) finally paid up 75 per cent of the transaction value for the power utilities.

However, when the amount is added to the 25 per cent paid six months ago as initial deposits for the same assets, a total of N425.830 billion ($2.733 billion) would have been generated by the federal government through the sale of the power assets in less than a year.

A breakdown of the sums paid by the bidders last week showed that for the generation companies (Gencos), Amperion Power Limited, which won the bid for Geregu power station, paid $99 million; Transcorp/Woodrock which also won the bid for the Ughelli power plant paid $225 million; Mainstream Energy, which also met the payment deadline as prescribed by the National Council on Privatisation (NCP), paid $216.472 million for Kainji hydro power station; and NEDC/KEPCO paid $407 million as full and final payment for the 1,320MW Egbin power station.

Similarly, CMEC/Eurafric paid $120.034 million out of an outstanding balance of $150.75 million expected from the bidder for the Sapele power plant, while North-South Power paid $39.822 million from an outstanding balance of $101.442 million for Shiroro hydro power station. CMEC/Eurafic and North-South Power are awaiting the go-ahead from the Bureau of Public Enterprises (BPE) to pay $30.41 million and $61.62 million respectively to complete the payment for Sapele and Shiroro power plants.

The lenders for both bidders, THISDAY gathered, missed the deadline for the transfer of the balance on behalf of their clients by a few minutes last Wednesday, and have requested the permission of the BPE to close the transactions.  

For the distribution companies (Discos), of the 10 bidders approved by the NCP, nine met the deadline last week by paying the outstanding 75 per cent of the transaction value for the power assets.

Bidders that paid included Kann Consortium for Abuja Disco, which paid $123 million; Vigeo Power Consortium for Benin Disco paid $96.750 million; while West Power and Gas for Eko Disco paid $101.250 million.

In addition, Integrated Energy which won the bids for Ibadan and Yola Discos paid $171 million for both assets; NEDC/KEPCO paid for Ikeja Disco at $131 million ($98.250 million as 75 per cent outstanding) and Aura Energy Limited for Jos Disco at $82 million (($61.500 million as 75 per cent outstanding).

Other bidders that paid are Sahelian Power SPV Limited which won the bid for Kano Disco - $102 million and 4Power Consortium for Port Harcourt Disco - $93 million.

Source: Legit.ng