Home Economy 54 investors bid for PHCN 11 distribution outfits

54 investors bid for PHCN 11 distribution outfits

by Business News Report

By Omoh Gabriel

The Bureau of Public Enterprises yesterday said that 54 potential investors have submitted bid for the 11 distribution companies about to be privatized. The Bureau in a release signed by its head of corporate communication Mr. CHUKWUMA NWOKOH gave the break down as follows Abuja Electricity Distribution Company Plc five bidders, Benin Electricity Distribution Company Plc seven bids, Enugu Electricity Distribution Company Plc four bids, Eko Electricity Distribution Company Plc, nine Ibadan Electricity Distribution Company Plc, seven bids; Ikeja Electricity Distribution Company Plc, ten bids; Jos, Kano and Kaduna Electricity Distribution Companies Plc two bid each; Port Harcourt and Yola Electricity Distribution Companies Plc, three each.

The statement said “In keeping with the timeline for the privatisation of the distribution companies created from the unbundling of Power Holding Company of Nigeria (PHCN), the Bureau of Public Enterprises (BPE) on Tuesday, July 31, 2012 received technical and financial proposals from 54 potential investors interested in the privatisation exercise.

“It will be recalled that the revised timeline had July 31, 2012 as deadline for receipt of technical and financial bids from the potential investors.

“Prospective core investors, who must be local and/or international power distributors or investors with power distributors as technical partners, will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government of Nigeria. The transaction timeline reveals that the evaluation of the technical bids will take place between August 14 and 28, 2012. The National Council on Privatisation (NCP) will approve the results of the technical evaluation by September 11, 2012.

“The deadline for the shortlisted bidders for generation companies to submit their letters of credit is September 18, 2012 while October 2, 2012 is the deadline for shortlisted bidders for distribution companies. Consequently, NCP’s approval will pave way for the opening of financial bids of the shortlisted investors.
“The BPE will on September 25, 2012 open the financial bids of prospective investors for the generating companies while October 10, 2012 is the date for the opening of the financial bids for the distribution companies. The announcement of the preferred bidders for the generating companies is October 9, 2012 while October 23, 2012 is the date for the announcement of the preferred bidders for the distribution companies.

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”.

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