5 bidders pay $156.50m for PHCN successor companies

The power reform is progressing as five bidders have so far paid $156.50 million to the Federal Government being the mandatory 25 percent of the bid value of the PHCN successor companies they have indicated interest to acquire.

They are Amperion Power Company Limited, the preferred bidder for Geregu Power Plc which paid $33 million; Integrated Energy Distribution & Marketing Company, the preferred bidder for Ibadan and Yola Distribution Companies paid $42.25 million and $14.75 million for Ibadan and Yola Discos, respectively; NEDC/KEPCO, the preferred bidder for Ikeja Distribution Company, $32.75 million; and West Power & Gas, the preferred bidder for Eko Distribution Company, $33.75 million.

The payment is ahead of the Thursday deadline for all the bidders to make the mandatory 25 percent payment in line with the share purchase agreement for the transactions.

Other bidders for the PHCN successor companies are 4Power Consortium (Port-Harcourt Disco); Aura Energy Limited (Jos Disco); Interstate Electrics Limited (Enugu Disco); KANN Consortium Utility Company Limited (Abuja Disco), Sahelian Power SPV Limited (Kano Disco), Vigeo Consortium (Benin Disco); Transcorp Consortium (Ughelli Power Plc); CMEC/EUAFRIC Energy JV (Sapele Power Plc); Mainstream Energy Solutions Limited (Kainji Power Plc); and North-South Power Company (Shiroro Power Plc).

The final approval of the preferred bidders by NCP and its announcement for the successor companies was done on October 23, 2012.

The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.