The Federal Government has reopened discussions with the preferred bidders for three of the 10 power plants built under the National Integrated Power Project (NIPP) and supervised by the Niger Delta Power Holding Company (NDPHC) Limited.
The power plants and their installed capacities are Calabar in Cross River State, 634megawatts (Mw), Geregu in Kogi State (506.1Mw) and Omotosho plant in Ondo State (512.8Mw).
The NDPHC, a special purpose vehicle, established by the Federal Government to fast-track the achievement of stable power supply, built 10 medium-sized thermal power plants but was able to successfully market seven to investors globally in 2014 during President Goodluck Jonathan led administration. The others were not billed for privatisation due to litigations.
In line with the privatisation processes, investors submitted bids for the seven power plants preferred bidders and reserved bidders emerged but the transactions were concluded before the end of Jonathan’s government.
The Nation gathered that the Federal Government has resumed talks with the investors in the previous privatisation. However, this time, the government would market the plants at the same time. A source, who wants to be anonymous, said each power plant would be sold in accordance with its peculiarities.
According to the source, the government is discussing with the preferred bidders in the earlier exercise. In the previous privatisation, the Joint Transaction Board confirmed EMA Consortium as the preferred bidder for Calabar Generation Company with a bid price of $625 million, while Nebula Power Generation Consortium emerged the reserved bidder with an offer of $623.75 million.
For the Geregu Generation Company, Seoul Electric Power Limited was the preferred bidder with a bid of $690.2 million, and YellowStone Electric Limited the reserved bidder with $613.1 million offer while Omotosho Electric Power emerged the preferred bidder for Omotosho Generation Company with an offer of $659.9 million as against an offer of $645.15 million by the reserved bidder, ENL Consortium Limited.
If the government settles for the bids in the previous exercise, it would rake in at least $1.975 billion from the three power plants. The government’s intention in reopening the bids with a determination to close the transaction sustainably, the source said, is to promote private sector investment into the power sector.
When the deal on the three power plants is concluded, another two plants will follow successively until the entire power plants are privatised. The previous government was expected to realise $4.3 billion from the sale of the plants. Whether that amount will still be realisable is left to the government to decide, the source added.