Bids Cancelled over Firms Linked to Nnaji

Participation by two companies linked to the Minister of Power, Professor Bart Nnaji, in the power privatization process has compelled the National Council on Privatisation (NCP) to cancel the technical bid evaluation process conducted for Afam Generation Company Limited and Enugu Distribution Company Limited.

The NCP, after its meeting had announced the results of the technical evaluation conducted for the 25 bids it received last month for the six generation companies (Gencos) created from the unbundling of the Power Holding Company of Nigeria (PHCN). From that process, seven bidders were said to have successfully met the cut-off mark of 750 and above during the technical evaluation process and were prequalified to have their financial bids open on September 25.

They are: Phoenix Electricity, Transcorp Consortium and Ampiron Power Distribution Limited, which bid for Ughelli Power Company; CMEC Energy and GPN Nestoil Power Services Limited for Sapele Power Company; while Ampiron Power Distribution Limited, Mainstream Energy Solution Limited and North South Power Company Limited were prequalified for Geregu, Kainji and Shiroro Power Companies respectively.

NCP was silent on the bidders that were prequalified for the Afam Power Station owing to the potential conflict of interest that had arisen during the privatization process. Nnaji, who is a member of the NCP by virtue of his position as Minister of Power, had brought it to the attention of the council that O & M Solutions of Pakistan, a member of one of the consortia bidding for Afam, had worked as a contractor for Geometric Power. The consortium, in which O & M Solutions has a stake, is Skipper Nigeria Limited, which had submitted technical and financial bids for Afam on July 17, the deadline set by the Bureau of Public Enterprises (BPE) for the submission of bids for the Gencos. Other companies that bid for Afam, a power plant in Rivers State with an installed capacity of 776mw, are Primeniza Energy Limited and NPG Consortium.

The minister further notified the NCP that Geometric Power has a minority stake in Eastern Electric Nigeria Limited, which had submitted technical and financial bids for Enugu Distribution Company Limited on July 31. He also informed the council that owing to his position, he had notified President Goodluck Jonathan of his company’s bid for Enugu Distribution Company, and brought it to their attention that although he has an interest in Geometric Power, he had resigned from its board and transferred his shares to a blind trust.

http://www.thisdaylive.com/articles/privatisation-bids-cancelled-over-firms-linked-to-nnaji/123388/ 

Perennial Power Outages: EPRA to rescue

The federal government will soon embark on total implementation of the provisions of the Electricity Power Reform Act (EPRA) of 2005 in order to tackle the perennial power outages being experienced in the country.

Minister of Power, Prof. Barth Nnaji made this known in a press briefing in Abuja after meeting with President Goodluck Jonathan on the performance of his ministry in the implementation of the 2012 budget. He was accompanied by his state counterpart and the Senior Special Adviser to the President on Media and Publicity, Dr Reuben Abati.

The EPRA Act provides in its preamble that companies will be formed to take over the functions, assets, liabilities and staff of the Power Holding Company of Nigeria (PHCN) in order to “develop a competitive electricity markets.” It also provides for the establishment of the Nigerian Electricity Regulatory Commission (NERC), “to provide for the licensing and regulation of the generation, transmission, distribution and supply of electricity.” The NERC, the Act stipulates further, will also enforce performance standards, consumer rights and obligations and provide the determination of tariffs and other related matters.

The federal government also has in view the completion of 156 on-going projects across the country in order to facilitate the job of the Transmission Company of Nigeria (TCN), which will soon partner private sector investors in the provision of power to the people of the country.

Nnaji who described power and its provision as the biggest constraint of the nation, said that the ministry received the sum of N75.5 as budgeted for 2012,  while the National  Assembly  provided for N78 billion, the difference being the lawmakers’ additions for some constituency projects. He also disclosed that the ministry’s performance in the implementation of the budget was 52.9%, explaining that out of the 75.4 Billion budgeted for capital project; N21.5Billion has been released while the amount used is N11.4Billion.

Court restrains Minister, NERC Chairman & PHCN from awarding prepaid meter contract

An Abuja Federal High Court has issued an interim order restraining the Minister of Power, Prof. Bart Nnaji, the Chairman of the Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, and the Power Holding Company of Nigeria from going ahead with the award of contract for prepaid meters, pending the determination of a suit brought by a firm, Ziklagsis Network Limited. The order was issued by Justice Gladys Olotu of a Federal High Court in Abuja.

Ziklagsis Network Limited claimed that the PHCN had in 2003 entered into a tripartite agreement with it and Unistar High-Tech System Limited for the maintenance of prepaid electricity meters. The firm also alleged that the said agreement was frustrated by senior management personnel of the PHCN through various manipulations.

An arbitral panel headed by Justice Kayode Eso, a retired justice of the Supreme Court had earlier issued an order restraining the Power Holding of Nigeria (PHCN) from awarding the contract to any other company pending the determination of an appeal brought by a firm, Ziklagsis Network Limited. But Nnaji was said to have vowed that the government of Nigeria would not be bound by any court order.

 PHCN had in 2003 entered into a tripartite agreement with Ziklagsis, Unistar High-Tech System Limited for the maintenance of Prepaid Electricity Meters.  Ziklagsis in separate letters to Nnaji and Amadi alleged that the agreement was frustrated by very senior management staff of the PHCN through various manipulations.

PHCN workers stage walk out on Ministers

Power Holding Company of Nigeria (PHCN) workers staged a walkout during a meeting with two ministers and some top government officials. The meeting held at the PHCN head office, Abuja, was aimed at fine-tuning negotiations between government and labor for the privatization of PHCN. The Ministers present were the Minister of Power, Prof. Bart Nnaji, and his counterpart in the Labor and Productivity, Chief Emeka Wogu, were at the meeting.

A statement from the Ministry of Power, signed by the Special Adviser to the Minister of Power, Mr. Ogbuagu Anikwe, said the government-labour negotiating team requested Nnaji to address the workers on the government’s position on the matter. The statement said, “As early as 8am, the conference hall of PHCN was filled to capacity. However, midway into the session, someone came to ring a bell to announce that the General Secretary, National Union of Electricity Employees, Mr. Joe Ajaero, has directed all workers in the hall to leave with immediate effect. “Many of the workers immediately complied. This, however, did not deter the team, which went on to deliver the message to the management and a few workers who were left behind.”

The meeting, which lasted for two hours, was aimed at giving the ministers and the negotiating panel a hearing as well as to brief them about the final phase of the power sector reform exercise. Nnaji stated that he came to have a face-to-face interaction with the workers and to answer questions that might be agitating their minds over the ongoing privatization exercise.