Wednesday 26 September 2012

IBB Group Buys Shiroro Plant

Transcorp  yesterday won the bid for the sale of 100 per cent share of Thermal Generation Company at Ugheli with a bid price of $300 million, while Amperion Power Distribution Company emerged the reserved bidder with a bid price of $252 million.
Transcorp and Wood Rock is a  consortium of Transnational Corporation of Nigeria, Symbion Power Plc of USA , Medea Development S.A of Luxemburg, PSL Engineering and Control of Nigeria and Thomassen Services and Contracting Company of Oman . Also, CMEC/EURAFRIC Energy which is equally a consortium of  China Machine Engineering Corporation, Eurafic Energy Limited of Nigeria.
British Power International,  First Bank Nigeria Plc and Aetex Solicitors and Arbitrators of Nigeria won the bid for the purchase of 100 per cent shares in Sapele Power plc with a price of $201 million, while JBN- Nestoil Services Limited, comprising Nestoil Plc Nigeria, Julius Berger Investment Limited, Babcock Borsig Steinmuller of Germany, Steag Energy Services of Germany, Quantum Power of Israel and Harith Fund of South Africa emerged the reserved bidder with $106 million which is the reserved bid for the enterprise.
In the case of Geregu  Power plc,  Amperion Power Distribution Limited,  emerged the preferred bidder with a bid price of $128.5 million  for 51 per cent of the company shares. Kainji Power plc (which has a 15 years  concession) was won by   Mainstream Energy Solutions, with a bid price of $50.76 million . Mainstream is a consortium of RusHydro International and RusHydro JSC of Russia, Col.Sani Bello , a Nigerian businessman , Amni International Petroleunm Development Company of Nigeria, NIGELEC of Niger, Pqcqua Energy Limited, Confluence Cable Netwotk Limited, Crust Energy, TAK and Anchorage Holdings (all from Nigeria).
However, North- South Power which has XS Energy Limited of Nigeria, BP Investment Limited, Urban Shelter Limited of Nigeria, Transatlantic Development and Investment Company of USA, China International Water Electric, China Three Gorges Corporation, Niger State Government and Roads Nigeria Plc in the consortium emerged the sole winner for fifteen years concession of Shiroro Power plc with a bid price of $111.7 million.
In his opening remarks on the occasion, Chairman of the Technical Committee of ncp, Mr Atedo Peterside, said that in  December 2010, the NCP advertised for Expressions of Interest (EOIs) from prospective core investors interested in acquiring successor thermal generation companies (“Thermal Gencos”) and concessionaires interested in managing the hydro generation companies (“Hydro Gencos”.)
According to him, both  the Thermal  GENCOS and the Hydro GENCOS were  companies created out of the unbundling of NEPA, as required by the Electricity Sector Reform (EPSR) Act, 2005. And by March 4, 2011, the deadline for the submission of Expression of Interest (EOIs), 204 applications were received for the four Thermal Gencos and 67 applications were received for the two Hydro Gencos.
That is, a total of 271.??”Following the evaluation of the applications, 87 applications for the Thermal Gencos and 40 applications for the Hydro Gencos were shortlisted. The shortlisted bidders were requested to pay $20,000 to purchase the Request for Proposals (RFP), have access to the data room and proceed to the next phase of the transaction. At the deadline for the payment of the data room access fees, 56 out of the 87 shortlisted bidders for the Thermal Gencos and 35 out of the 40 shortlisted bidders for the Hydro Gencos had each paid $20, 000.
The shortlisted bidders that paid the sum of $20, 000 are those that the BPE refers to as pre-qualified bidders” he said.??Peterside recalled how Nigerians have craved for better electricity service for three over decades now, giving insufficient allocation of resources to the sector as a reason. “As you all know, for upwards of three decades, Nigerians have been embarrassed and inconvenienced by epileptic and inadequate electricity supply to their homes and businesses. For much of this period, there was an insufficient allocation of resources by the Government to its Power Sector Holding Company (PHCN) which operated like a monopoly producer and distributor and so PHCN could not undertake the required investment expenditure.
Meanwhile, low electricity tariffs also ensured that the consumers could not augment the shortfall in PHCN’s funding needs. These two factors combined to reinforce a LOW EQUILIBRIUM TRAP that ensured that the quantum of electricity generated and delivered to the consumer typically fluctuated between 2,000 and 3,000 mega watts, that is, after adjusting for system losses.?
The fastest way to break out of this Low Equilibrium Trap is to introduce cost-reflective tariffs immediately which will help to restore a healthy value chain that adequately rewards private investors who could come in and invest in well-defined segments of a well-regulated sector”he said. But the Director General of Bureau of Public Enterprises(BPE), Ms Bolanle Onagoruwa  gave the hope that Nigerians will soon begin to reap the  efforts geared towards improving the electricity supply in the country.
“Today, we begin to reap the efforts of over a decade of reform and privatisation of the Nigerian power sector. A lot has been happening, a lot has been achieved, and a lot more are in the works and the end result will significantly improve the lives of Nigerians.?”In September 2001, the Federal Executive Council approved the National Electric Power Policy (NEPP). The NEPP sets out the policy framework for re-designing the Nigerian Electricity Supply Industry (NESI), privatizing and liberalizing entry into the industry, attra

No comments:

Post a Comment