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Power: FG To Rake In $4.2bn – Uduaghan

Governor of Delta state, Dr Emmanuel Uduaghan
Governor of Delta state, Dr Emmanuel Uduaghan

The joint meeting of the National Council on Privatisation (NCP) and the Board of the Niger Delta Power Holding Company (NDPHC)yesterday ratified the results of the financial bid opening for seven out of the 10 power Generating Companies.

The Governor of Delta state, Dr Emmanuel Uduaghan, who briefed State House Correspondents after the meeting, explained that the Federal Government would generate an optimal sales value of $4.2billion from the preferred bidders while the least total sales value from the Reserved bidders is $4.089billion.

Minister of Power, Professor Chinedu Nebo who explained the approval of the bids result said three of the 10 generating companies namely, Omoku, Alaoji and Gbarain, were however being withheld pending the out come of a court case instituted by one of the disqualified bidders, Ethiope Energy Limited.

Ethiope Energy Limited which was disqualified for failing some aspects of due diligence process and requirement, had bided for the three generating companies but later went to court to challenge its disqualification.

He said what was achieved in the privatisation of the successor companies of the PHCN had been replicated in the NDPHC power generating companies.

Announcing the ratification, Uduaghan said “The preferred bidder for Benin Generation Company is EMA Consortium with a bid price of $580million, the reserved bidder is Index Consortium which bided for $575million.

“For Calabar Generation Company, EMA Consortium won as the preferred bidder with a bid price of $625million while Nebula Power Generation Consortium followed as the reserved bidder with $623.75million.

“Egbema Generation Company went to Dozzy Integrated Power Limited which offered $415.075million with AITEO Consortium as the reserved bidder offering $392million.

“Seoul Electric Power Limited emerged as preferred bidder for Geregu Generation Company with an offer of $690.20million followed by Yellow Stone Electric Limited with an offer of $613.11million as reserved bidder.

“For the Ogorode Generating Company, Daniel Power Consortium emerged as winner with an offer of $531.77million while ESOP Power Limited follower as reserved bidder with a bid price of $510million.

“ENL Consortium Limited won the bid for Olorunsogo Generating Company with an offer of $751.24million while Index Consortium emerged as reserved bidder with a bid price of $730million.

“Omotosho Generating Company went to Omotosho Electric Power as preferred bidder which offered $659.99million while ENL Consortium Limited was selected a reserved bidder with an offer of $645.15million.

“Optimal sales value for preferred bids in the exercise amounted to $4.253billion while least sales value as reserved bids totals $4.089billion.”

Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki explained that each of the preferred bidders are expected to make 15 percent bid guarantee payment within 15 working days and 25 percent payment of their respective bid prices within 15 working days.

The balance of the payments is expected to be made within six months.

All the 10 plants are jointly owned by the three tiers of government. The Federal Government contributes 47 per cent equity stake, while the local and state governments contribute the remaining 53 per cent equity.

Source: Vanguard

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