BPE Seeks Investors for $8B Power Plants

Shortlisted bidders for the Bureau of Public Enterprises/Niger Delta Power Holding Company (NDPHC) joint sale transaction process for the sale of 10 National Integrated Power Project (NIPP) power plants, cumulatively worth over $8 Billion will be announced on the August 8.
 
Benjamin Ezra Dikki, director general of BPE said at a presentation to prospective investors in it ongoing Hong Kong road show jointly organized by the Bureau and Niger Delta Power Holding Company.

Dikki stated that the sale of the power plants falls within the context of President Goodluck Jonathan’s Transformation Agenda programme.

The Transformation Agenda seeks to, among other things; create a conducive atmosphere for private capital inflows.
 
Dikki noted that besides power, the transport and housing sectors, development finance institutions and the Abuja Commodities and Stock Exchange that will introduce the warehouse receipt trading system, are also great investment opportunities awaiting interested local and international investors.
 
Dikki said that BPE and NDPHC are partners in the joint sale transaction process for the sale of the 10 power plants.

He added that BPE is legally authorized to sell Federal Government’s 47% shares, while NDPHC has the authorization of the States and local government councils  to sell 53% of the 80% shares on offer.
 
The DG extolled that the BPE will add significant value to the process using its vast experience in privatization of assets in Nigeria spanning nearly 500 transactions in its 25 year history.

The most recent, he noted, were the sale of the 15 Power Holding Company of Nigeria (PHCN) successor companies.
 
Chigbo Anichebe, head, Public Communications told Nigeria CommunicationsWeek in a message that the BPE boss advised prospective bidders to be aware of some of the observed lapses by prospective bidders in the previous bid processes.

They  involve  bids failing to substantially comply with the Requests for Proposal (RFP), failure to meet the threshold of required tangible net worth, failure to submit bid bonds, failure to submit audited accounts, failure to submit bids on time, among others.
 
He noted that the intension of the Expressions of Interest (EOI) process for the sale of the10 power plants was meant to improve on the rigorous requirements of the PHCN successor companies’ privatization transactions.

Anichebe warned that: “It is critical that all interested parties/potential investors go through the EOI guideline document”.
 
He reiterated to the potential investors that the deadline for the submission of expressions of interest remains 19th of July 2013, warning that the date would not be extended.
 
Governor Gabriel Suswan, Benue State, who is also the chairman of the Joint Technical Committee for the transaction, said that power is the bedrock of the development agenda of the current administration in Nigeria, adding that it is the policy of the Federal Government to ensure that solid foundation is laid.
 
He said the three tiers of government— local, State and Federal –have invested well over $8 billion in building the ten power plants.
 
Suswan noted that with a population of over 160 million, Nigeria is the largest market for investors in Africa and the atmosphere is conducive for investments.
 
Senator Chris Ngige, deputy chairman of the Senate Committee on Power, in a goodwill message said the proceeds of over $2.6 billion raised by the BPE in the privatization of PHCN successor companies, is the largest privatization transaction ever in Nigeria and one of the largest in the African continent.
 
Ngige noted that the contract between the BPE and winning bidders of the 15 PHCN successor companies were signed in February 2013 and the privatization transaction process is expected to conclude by September this year. 

He further pointed out that the privatization of the power sector is expected to accelerate the growth of the nation’s economy.

Ngige assured potential investors that their investments are safe in Nigeria and money well spent.