16 Ready To Buy Geregu Generation Coy, Four Other NIPPs
Sixteen firms have been shortlisted for the privatisation of five National Integrated Power Projects (NIPPs) in the country.
The 16 pre-qualified bidders are Mota-Engil Nig, Amperion Power, Sifax Energy, Pacific Energy Company Ltd, Globeleq Africa Limited, Geoplex Drillteq Limited, Asfalizo Acquisition Ltd and Launderhill PJB.
Others are Lauderhill Tata, Unicorn Power Genco Ltd, Connaught Energy Services Ltd, ENL Consortium Ltd, Ardova Plc, Central Electric and Utilities Ltd, North-South Power Consortium and Quantum Megawatt Consortium.
NIPP was conceived in 2004 to address the issues of insufficient electric power generation and excessive gas flaring from oil exploration in the Niger Delta region. Seven power plants were designed in gas-producing states as part of the project.
The planned privatisation of the five NIPPs and the investor’s pre-bidding conference is part of the Bureau’s 2021 work plan approved by the National Council on Privatisation (NCP).
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.
Director-General of the Bureau of Public Enterprises (BPE), Alex A. Okoh noted that the power sector remains a viable investment in the country given the low per-capital Megawatts recording Nigeria.
He stressed that the interest shown by bidders and the opening up of the generation aspect of the power sector confirmed the vast opportunities abound in the sector and that the Bureau and other relevant stakeholders were committed to making the sector very sustainable.
Okoh explained that the objectives of the pre-bid conference were to address possible questions from the pre-qualified bidders with regards to the transactions and provide clarity on some issues in the Transaction Documents as may be necessary.
Also, he said that the forum would also highlight the potential in the Nigerian power sector and provide a platform for potential investors to understand the process for the privatisation of the NIPP power plants as well as to enable them adequately to prepare their bid documents.
Okoh added: “This event is a continuation of the Federal Government’s reform of the power sector with the aim of ensuring that assets within the sector are fully utilized and transformed into world-class facilities, through the injection of private sector capital and deployment of more efficient and technical capacity.”
He allayed the fears of potentials buyers of some of the plants which have litigation issues, saying that such litigations were baseless and frivolous as the Bureau and the Niger Delta Power Holding Company (NDPHC) were empowered by the bids’ provisions under NIPPs transaction to terminate bids that violated the ground rules.
The event attracted critical stakeholders in the power sector including the National Electricity Regulatory Commission (NERC), Niger Delta Power Holding Company (NDPHC) and Nigerian Bulk Trading Company (NBET).
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