Released August 14, 2012 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Privatization is progressing on all state-owned elements of Nigeria's power industry, including generation, transmission and distribution. In the latest move this month, Manitoba Hydro International (MHI) (Winnipeg, Manitoba) signed a $23 million management accord that will see it reorganize the Transmission Company of Nigeria (TCN), with the aim of eventually privatizing part of it.
The Canadian company is looking to turn TCN into a technically and financially efficient, stable and sustainable company that will be market-driven and capable of utilizing its maximum generating capacity. MHI wants to see TCN distribute power throughout Nigeria 24 hours a day, 365 days a year. In the context of the country's chronically dysfunctional power system up to the present, this will be a game-changing achievement when it happens.
Nigeria's public enterprises director general, Bola Onagoruwa, said work on the project will begin immediately.
"The management contract will provide efficient management of government investments and ensure adequate and equitable generation dispatch, according to fair merit order and sound regulatory principles," she said. "It will also ensure fair market settlements between electricity traders and provide for skills and expertise transfer to the Nigerian counterparts who will serve as deputies and in other positions among the management staff of the management contractor."
The Nigerian Electricity Commission is an established independent regulator in the sector and is setting up the commercial framework for the sector (via cost reflective tariffs) and the bulk trader.
In the process of the ongoing privatization of the 11 national distribution companies, technical and financial proposals have been received by the bureau of public enterprises from 54 potential investors. The evaluation of technical bids will be completed by August 28, 2012 and the national council of privatization will approve the evaluation results by September 11, 2012. Prospective core investors must be local and/or international power distributors or investors with power distributors as technical partners.
For the privatization of the generating sector, shortlisted bidders must submit letters of credit by September 18, 2012. Shortlisted bidders for distribution companies must submit letters of credit by October 2. Preferred bidders for the generation and distribution sectors will be announced on October 9 and 23, 2012, respectively.
There is a wide range of local and international companies represented in the various consortiums, including Honeywell Energy Resources International (Lago) in a distribution bidding consortium. The company already has committed $1 billion to power projects in Nigeria.
For related information, see July 13, 2012, article - Nigeria's Power Privatization Bidding Enters Final Phase.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The Canadian company is looking to turn TCN into a technically and financially efficient, stable and sustainable company that will be market-driven and capable of utilizing its maximum generating capacity. MHI wants to see TCN distribute power throughout Nigeria 24 hours a day, 365 days a year. In the context of the country's chronically dysfunctional power system up to the present, this will be a game-changing achievement when it happens.
Nigeria's public enterprises director general, Bola Onagoruwa, said work on the project will begin immediately.
"The management contract will provide efficient management of government investments and ensure adequate and equitable generation dispatch, according to fair merit order and sound regulatory principles," she said. "It will also ensure fair market settlements between electricity traders and provide for skills and expertise transfer to the Nigerian counterparts who will serve as deputies and in other positions among the management staff of the management contractor."
The Nigerian Electricity Commission is an established independent regulator in the sector and is setting up the commercial framework for the sector (via cost reflective tariffs) and the bulk trader.
In the process of the ongoing privatization of the 11 national distribution companies, technical and financial proposals have been received by the bureau of public enterprises from 54 potential investors. The evaluation of technical bids will be completed by August 28, 2012 and the national council of privatization will approve the evaluation results by September 11, 2012. Prospective core investors must be local and/or international power distributors or investors with power distributors as technical partners.
For the privatization of the generating sector, shortlisted bidders must submit letters of credit by September 18, 2012. Shortlisted bidders for distribution companies must submit letters of credit by October 2. Preferred bidders for the generation and distribution sectors will be announced on October 9 and 23, 2012, respectively.
There is a wide range of local and international companies represented in the various consortiums, including Honeywell Energy Resources International (Lago) in a distribution bidding consortium. The company already has committed $1 billion to power projects in Nigeria.
For related information, see July 13, 2012, article - Nigeria's Power Privatization Bidding Enters Final Phase.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
