Power Firms – 10 Bidders Beat Deadline for 75 Percent Payment

The Bureau of Public Enterprises kept sealed lips yesterday over the outcome of the privatisation process for the unbundled PHCN companies as the deadline for payment of the 75 per cent balance expired yesterday.

But LEADERSHIP gathered from sources within the bureau that 10 companies had made full payment before the deadline expired yesterday while the remaining four were still making efforts to meet their obligations.

Efforts made to confirm this from officials of the BPE proved abortive as phone calls and short messages to the bureau’s spokesman were not answered.

But the minister of power, Prof. Chinedu Nebo, said earlier yesterday that they were getting positive responses from the bidders.

Nebo, who said this in Abuja during a briefing on the outcome of the weekly Federal Executive Council (FEC) meeting, expressed the hope that the bidders would meet the deadline as many of them had responded positively as at Tuesday.

“As many of you already are aware, today is the last day for the payment of the 75 per cent of the remaining amount of the money owed by the preferred bidders of the GENCOs (generating companies) and DISCOs (distribution companies) that have been privatised,” he said. “And I’m very happy to announce to you that we are getting very positive results – that many of these GENCOs and DISCOs are living up to expectations.”

Nebo said government had no plan to extend the deadline as the company that came second in the bidding process “are waiting desperately to pay”.

The federal government is expecting to receive about N264 billion as full payment if the 75 per cent is paid for all 15 distribution and generation companies. Added to the N87.8 billion received earlier as 25 per cent payment on March 21, 2013, the total money received for the privatisation of the 15 successor companies would amount to about N352 billion.

A breakdown of the payment indicates that Integrated Energy Distribution & Marketing Company, which won the bids for Ibadan and Yola distribution companies, had a financial commitment of $171 million broken down as $126.75 million for Ibadan and $44.25 million for Yola respectively. The company earlier paid $42.25 million and $14.75 million respectively for the two Discos.

4Power Consortium is paying $93 million being 75 per cent balance for Port Harcourt Distribution Company. The company earlier paid $31 million; Interstate Electrics Limited, which earlier paid $31.5 million for Enugu Distribution Company, would balance $94.5 million to take possession of the company.

North-South Power Company which paid $27.9 million for Shiroro Power Plc is balancing $83.7 million. The company obtained an $82 million financing deal from UBA Plc and UBA Capital to finance the acquisition.

Vigeo Consortium is paying the balance of $96.75 million for Benin Distribution Company having paid USD $32.25million earlier.

Transcorp/Woodrock Consortium, CMEC/EUAFRIC Energy JV, Kann Consortium and Aura Energy are balancing $225million, $150.75 million, $143 million and $61.38 million for Ughelli Power Plc, Sapele Power Plc, Abuja Distribution Company and Jos Distribution Company respectively. The companies earlier paid $75 million, $50.25 million, $41 million and $20.46 million respectively.

Also, Mainstream Energy Ltd, Sahelian Power SPV, NEDC/KEPCO, West Power & Gas and Amperion Power Company Limited are paying $178.4 million, $102.75 million, $98.25 million, $101.25 million and $99 million respectively for Kainji Power Plc, Kano Distribution Company, Ikeja Distribution Company, Eko Distribution Company and Geregu Power Plc, having earlier paid $59.47 million, $34.25million, $32.75 million, $33.75 million and $33 million.