James Abiodun Olotu
The federal government will tomorrow kick off the process of privatising the 10 brand new power stations built under the National Integrated Power Projects (NIPP) with a road show that will be held in Lagos.
The road show, which will commence tomorrow and Wednesday, will also be extended to the United Kingdom and Hong Kong, later in the year.
Briefing journalists in Lagos at the weekend, the Chief Executive Officer of the Niger Delta Power Holding Company (NDPHC), operators of the NIPP, Mr. James Abiodun Olotu, disclosed the privatisation of the 10 plants had already attracted over 40 local and foreign investors.
Olotu said the board of directors of NDPHC, headed by Vice-President Namadi Sambo, had recommended the sale of the plants to President Goodluck Jonathan, who had also approved their sale.
The 10 power plants are located in Olorunsogo in Ogun State; Omotosho in Ondo State; Ihobvor in Edo State; Geregu in Kogi State; Egbema in Imo State; Alaoji in Abia State and Sapele in Delta State.
Others include Calabar Power Station in Cross River State; and Gbarain Ubie Power plant in Bayelsa State.
Olotu, who confirmed that the privatisaion would be concluded by the middle of 2014, further stated that four of the plants had been technically completed, while six others, which were at various stages of completion, would be completed in 2014.
He said the federal government would sell 80 per cent of its shares in the power plants, adding that the Ministry of Power and Bureau of Public Enterprises (BPE) would partner in the sale of the power plants.
“With the planned privatisation, there would be efficiency and effectiveness in the management of the power plants.
“Government can play its role where it has relative advantage. Government will invest a little but more in the transmission sector so as to build the country’s power infrastructure,” he said.
Olotu assured prospective investors that the auction of the plants would be transparent and follow due process, in view of the caibre of investors that had expressed interest and the federal government’s desire to make the power sector work.
He, however, declined to disclose the value of the assets slated for sale, but added that the proceeds from the exercise would be used to build more power plants.
Speaking on the timetable for the exercise, the CPCS Global Transaction Adviser to NDPHC, Mr. Arif Mohiuddin, said submission of bids for the plants would take place on July 19, 2013, while August 8 has been fixed for the shortlisting of bidders.
According to him, there would be a bidders' conference on September 18 and 19. He also stated that the bidders would submit their proposals on November 8, while the evaluation of technical proposals would be done one month later.
He said the names of successful bidders for the plants would be announced, while the handover of the assets to the investors would come up before June 2014.
Mohiuddin said the plants would not be handed over to the would-be owners until they are fully completed.
Olotu said the sale became imperative because NDPHC had achieved the mandate given to it from inception in 2005, which was to build 10 independent power plants to generate 5,000 megawatts (MW) of electricity.
“The mandate was to build 10 power plants across the country with capacity to generate 5,000MW by end of 2013 and divest from them.
“We are confident to tell you that this year will be a good year in the power sector. All the power generating plants will be completed this year.
“In fact, six plants are ready for commissioning while four others are about to be completed within the next few months.
“The process that we went through to ensure that we are where we are today is intrinsic. President Goodluck Jonathan has approved the divestment plan and it would be concluded mid-next year.
“Providing stable power supply has been a major priority of this administration and we all know that the power sector is best managed by private investors.
“We are divesting 80 per cent in each power plant as valued by our financial advisers and valuers. We will retain 20 per cent in order to assure potential investors of our confidence in the plants we are selling,” he explained.
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