Vigeo Power pays $32.25m for Benin Distribution Company
In line with the guidelines of the privatisation programme of the Federal Government, Vigeo Power Limited has paid $32.25 million to the Bureau of Public Enterprises (BPE).
This figure, according to sources at the Bureau, represents 25 percent of the $129 million bid price for the Benin Electricity Distribution Company (BEDC), covering Edo, Delta, Ondo and Ekiti states.
Vigeo Power Ltd is one of the consortia that emerged as core investors in the Federal Government’s privatisation programme in the power sector, having clinched BEDC in the open and internationally-acclaimed competitive bid process held in 2012.
Vigeo Holdings Limited is the consortium lead and equity member, with Global Utilities Management Company Limited (GUMCO) as local technical partner and equity member, African Finance Corporation (AFC) as equity member and TATA Power Delhi Distribution Limited (TPDDL) as the foreign technical partner. TATA Power Delhi Distribution Limited (TPDDL) will provide technical service for BEDC on the wire side while GUMCO provides technical service on the commercial side. PWC of India is the transaction advisers.
Vigeo Holdings is a multi-business group with interest in major sectors of the Nigerian economy.
With over 25 years of successful track record, VGL has made a name and carved an image as a quality group providing quality service consistently since 1985.
Before Vigeo Power Limited bought BEDC, which was one of the distribution companies unbundled from PHCN, GUMCO, a member of the consortium, had also participated in virtually all the public private partnership in the downstream sub-sector of the power sector including Revenue Cycle Management (RCM) and Prepaid Metering Service and the PHCN bid for metering and billing management (MBM).
GUMCO was the management operator for the National Pre-Payment Metering Programme (NPPMP) in the Benin Electricity Distribution Company covering Edo, Delta, Ondo and Ekiti states. The programme primarily is targeted at reducing non-technical losses and improving customer satisfaction via improved customer service delivery. This entails the procurement, installation and management of prepaid meters in BEDC. The contract provided for the installation of 161,000 Pre-Paid Meters (PPMs) within two years and management of the vending operations until the operator’s investment in metering and vending infrastructure is fully repaid.