Nigeria's Power Privatization Bidding Enters Final Phase

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The long-awaited final lap in Nigeria's planned power generation and distribution company sell-off appears to be on track. The government's Bureau of Public Enterprises (BPE) has called for all bids for firms created by the state-owned Power Holding Company of Nigeria (PHCN) to be submitted by Tuesday, July 17. The BPE also has called for the submission of technical and financial bids for the power distribution companies by July 31.

The BPE said that the release of the bid documents to potential investors was in keeping with the revised timetable for the privatization of the 11 distribution companies and six generation companies. The generating firms on sale include Afam Generation Company, Geregu Generation Company, Kainji Generation Company, Sapele Generation Company, Ughelli Generation Company and Shiroro Generation Company.

The bureau said that the latest move was in line with plans to privatize the power sector, and the government will ensure that all processes leading to the privatization are transparent.

An earlier announcement said that the National Council on Privatization would reveal the names of the preferred bidders for the PHCN successor companies before October 23.

Earlier, the BPE selected 152 potential investors in the different successor firms from a list of 207, with 40 showing interest in the hydro generation companies, 87 in the thermal companies and 80 in the distribution companies. The selected companies had been prequalified and shortlisted by the BPE to participate in the next phase of the process.

The transaction documents issued to the selected companies were the share sale agreement, shareholder agreement, performance agreement and concession agreement. The industry documents included: gas sale and aggregation agreement, gas transportation agreement, bulk power purchase agreement (thermal), bulk power purchase (hydro), transmission use of system agreement, grid connection agreement, ancillary service agreement and vesting contract.

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