Here are the 5 Nigeria’s Integrated Power Plants Up for Sale as 36 Investors Indicate Interest
The Nigerian government is moving ahead to sell five of its National Integrated Power Plants (NIPPs) after the process was stalled since 2016, Amina Tukur Othman, head of public communications at Bureau of Public Enterprises (BPE) confirmed in a statement released on Monday.
Since the expression of interest (EOI) for the privatization was advertised on May 6, 2021, Othman said 36 investors have so far indicated an interest in the purchase.
Here are the 5 plants up for sale:
Benin Generation Company Limited at Ihovba, Edo state; Calabar Generation Company Limited, Cross River state, Geregu Generation Company Limited, Kogi state, Olorunsogo Generation Company Limited, Ogun state and Omotosho Generation Company Limited, Ondo state.
The BPE director-general, Alex Okoh, said the sale of the NIPP plants is in accordance with the 2021 work-plan of the bureau, which was approved by the National Council on Privatisation (NCP).
According to Okoh, the Privatisation process of the plants began in 2012 and the plan at the time was to sell the 10 NIPP plants. By November 2013, he said, bidders had submitted technical and financial proposals for the sale.
“In the Request for Proposal (RfP), the bidders were informed that they would be required to pay the full purchase consideration for the acquisition of 80% equity in the NIPP generation companies”, he said.
Okoh further explained that in February 2016, the Niger Delta Power Holding Company (NDPHC) gave the approval to proceed with a phased implementation of the program by negotiating with the Preferred bidders of the four NIPP generation companies with the least challenges.
The transaction was, however, stalled and eventually terminated, mainly due to the liquidity challenges in the power sector, amongst other factors.
In April 2021, at the BPE’s second meeting for the year, it secured the approval of the National Council on Privatisation to expedite the transaction process.
The statement said that President Muhammadu Buhari’s administration is determined to revive the power plants to put them to full use for the much-needed power needs of the people and the growth of the nation.
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