Sale of PHCN Companies: Southern Electricity flouted due process

Of all the consortia that participated in the bid opening for the sale of PHCN Companies, Southern Electricity was the only one that submitted multiple commercial bids for the same disco. This disclosure was made by the Chairman, Technical Committee of the National Council on Privatization (NCP), Mr. Atedo Peterside.

The governors of Delta, Edo and Ekiti States had at a joint news conference in Abuja vehemently rejected the choice of Vigeo Power Consortium as the preferred bidder for the Benin Disco and described the bid processes organized by the BPE as “highly fraudulent, not transparent and representing some racketeering interests”. Part of their contention was that Vigeo lacked the necessary technical competence and capacity to run the Benin Disco. Specifically, the Governor of Edo State, Adams Oshiomhole, had claimed that the process was rigged to favour Vigeo as Southern Electricity scored 898 points to Vigeo’s 847 points during the technical evaluation of the bids and ought to have emerged the preferred bidder.

However, Peterside disclosed that Southern Electricity’s envelope was discovered to have contained two different commercial bids, both of which were signed by one Mr. Matthew Edevbie. He said: “The first bid was dubbed the ‘primary bid’, while the other was dubbed an ‘alternate bid’. This was a clear contravention of the RFP. While reaffirming that the entire transaction followed due process and was governed by the provisions of the RFP, Peterside noted that close to 90 per cent of the seven members that make up Southern Electricity comprises private sector companies that are not owned directly or indirectly by the governments of Delta, Edo, Ekiti and Ondo States.

PHCN Privatization: Bid winners still under scrutiny

The National Electricity Regulatory Commission (NERC) has revealed that companies which won bids for state-owned power generation assets put up for sale or concession would still undergo a “fit and proper” scrutiny. NERC’s Chief Executive Officer, Dr. Sam Amadi, said the commission is looking into the memorandum submitted by the companies to determine whether the local firms and their foreign partners possess the technical and financial capacity to manage the assets.

The commission’s head also disclosed that they are conducting checks on the individuals involved in the transaction to find out if they are “fit and proper” to run the unbundled companies on behalf of Nigerians. Amadi added that the report would be sent back to the president before the curtain is drawn on the exercise.

Chairman of the Technical Committee of the NCP, Mr. Atedo Peterside, had echoed a similar sentiment during the opening of the financial bids. He cautioned the jubilant representatives of the successful companies to be mindful of the fact that their emergence as preferred bidders was still subject to the approval of NCP and that they could still be denied the opportunity of taking over the companies if they failed to pay their fees or if they were found wanting in documentation during post-bid assessment.

PHCN: $1bn to be generated from privatization

Nigerian Government is expected to generate $1,001,654,534 from the sale of the five generation companies (gencos) unbundled from the Power Holding Company of Nigeria (PHCN) but the entire sum must be paid by the various successful bidders before the assets are handed over to the new core investors. Chairman of the Technical Committee of the National Council on Privatisation (NCP), Mr. Atedo Peterside made this clarification.

Peterside stated that Amperion Power Distribution Company Limited would pay $132,000,000 into the Federal Government’s treasury for the acquisition of the Geregu power station, while Transcorp and its partners – Woodrock, Symbion, Medea, PSL and Thomassen – would pay $300,000,000 for Ughelli Power Station. For Sapele Power Station, CMEC and Eurafric JV would pay $201,000,000, while $257,000,000 would be paid by Mainstream Energy Solutions Limited for Kainji Power Station.

He further stated that the Federal Government would earn $111,654,534 from the concession of Shiroro Power Station to North South Power Company. However, unlike the gas-fired power stations, the transaction for Kainji-Jebba hydro power station is a 15-year concession and not an outright sale, he said. Also, for the Shiroro hydro power plant, North-South Power Limited will manage the station under a concession.