FG Targets $2.6Bn from Sale of Power Assets

Bureau of Public Enterprises (BPE) is expected to generate over $2.6 billion  for the federal government in the 2013 fiscal year through the sale of power assets.

Already, the potential core investors in 15 of the successor power companies carved out of the Power Holding Company of Nigeria (PHCN) had paid $559.45 million into the coffers of federal government by the deadline date of Thursday March 21, 2013.

The amount represents only 25 per cent of the total sum, which the federal government is expecting from the sale of the 15 power companies.

The transaction process of the two remaining successor companies of Afam Power Plc and Kaduna Distribution Plc are currently ongoing.

Recall that the 18th successor company, the Transmission Company of Nigeria is slated for Management Contract.

The potential core investors are expected to pay the 75 per cent balance of the bid value of the assets in the next six months.

The BPE said that on March 21,2013, it received $31million from four Power Consortium for Port-Harcourt Distribution Company; $31.5 million from Interstate Electrics Limited for Enugu Distribution Company; and $27,913,633.50 from North-South Power Company for Shiroro Power Plc. These amounts represent the mandatory 25 per cent bid value for the companies.

Earlier, Vigeo Consortium, the preferred bidder for Benin Distribution Company, had paid USD $32.25million; Transcorp/Woodrock Consortium, the preferred bidder for Ughelli Power Plc, paid $75 million; CMEC/EUAFRIC Energy JV, the preferred bidder for Sapele Power Plc, paid $50,249,965; Kann Consortium, the preferred bidder for Abuja Distribution Company, paid $41 million; Aura Energy, the preferred bidder for Jos Distribution Company, paid $20,464,968.15.

Mainstream Energy Ltd, the preferred bidder for Kainji Power Plc, paid $59,467,500; and Sahelian Power SPV, the preferred bidder for Kano Distribution Company, paid $34.25million.