Business
Coal Corporation Commences Winding Down Process
The Nigeria Coal Corporation (NCC) has commenced its strategic winding down process, in preparation for privatisation.
The Managing Director of NCC, Mr. Dennis Okafor, told newsmen on Monday, in Enugu, that the corporation had commenced the sale of its core and non-core assets.
“Privatisation involves the disposal of the corporation’s assets and liabilities. This is being done under the Bureau of Public Enterprises (BPE). For now, we are dealing with non-core assets like vehicles, houses, lands and machines.
“They are at various stages of disposal while the proceeds will be used to offset liabilities, including payment of arrears of pensions,” Okafor said.
He said BPE had already advertised the sale of landed assets belonging to the corporation and all its departments and agencies in Ankpa, as well as, Okaba in Kogi.
On sale of mines, Okafor said that the Federal Government had commenced the process of negotiation with some foreign companies.
The Federal Executive Council recently approved contracts worth N1.7 billion for the provision of consultancy services for feasibility studies and detailed engineering design.
The contract also included drafting of contract documents for the two coal-fired power plants to be located within the Enugu and Benue/Kogi/Gombe axis. The contract for the Enugu axis to be handled by Messrs Steag Encotec West Africa/IMC would cost 2.141 million pounds.
The sum is payable at the prevailing interest rate in addition to N296.49 million, with a completion period of 15 months. The contract for coal-fired power plant to be sited in the Benue/Kogi/Gombe axis was awarded to Messrs GTA/WAPCOA for 4.157 million dollars plus N188.6 million, with a completion period of 12 months.
On when the winding down would be completed, Okafor said, “I do not know. As you can see, the feasibility study will last for 15 months. It is a gradual process. The corporation has to be in good shape before an investor will buy it.”