Stories y Etuka Sunday
The National Council on Privatization (NCP) and the governing board of the Niger Delta Power Holding Company (NDPHC) have approved financial bids opening of the 42 prequalified bidders out of 66 bidding
consortia for the 80% equity in the 10 NIPP power plants.
The bids opening which was scheduled for Friday, March 7th, 2014 and approved by Vice President Mohammed Namadi Sambo after a joint meeting at the weekend was in keeping with the published timeline for the transaction.
A statement by the Head, Public Communications, BPE, Chigbo Anichebe said that the 42 bidders that have been prequalified met the criteria set forth in the requests for proposal (RFP) and passed the due diligence verification conducted on technically qualified bidders.
The statement further said the NIPP Privatization is a joint transaction between the NCP and the Governing Board of NDPHC. The 10 plants are jointly owned by the three tiers of government; local, state and federal governments with the Federal Government contributing 47% equity stake and the local and state governments with the remaining 53% equity.
It quoted the Vice President as saying that “the privatization of the 10 NIPP power plants is the first time the private sector, National Assembly, Federal, State and Local governments are joining forces to ensure an all-inclusive transaction process, following highly successful investors’ fora spanning five countries “In this regard, he said all the three tiers of government and the private sector in Nigeria were continuing to collaborate in the privatization process of the power plants which is being jointly offered for sale by the Bureau of Public Enterprises (BPE) and Niger Delta Power Holding Company (NDPHC) to ensure that the same level of transparency acclaimed the world over in the PHCN transaction was replicated in the NIPP transaction process.
“Vice President Sambo further said that if Nigeria was going to be among the 20 largest economies in the world by the year 2020, the right steps must be taken, assuring that the administration of President Goodluck Jonathan is committed to ensuring that those right steps are taken going forward in implementing the Transformation Agenda; adding that this transaction is one such big step.
Recall that 66 proposals were earlier received from prospective investors interested in the 10 NIPP plants on November 8, 2013, The 10 power plants being offered for sale are: Alaoji, Benin, Calabar, Egbema, Gbarain, Geregu, Ogorode, Olorunsogo, Omoku, Omotoshho.