IBB,Otedola, Others Win Power Contracts

President, Nigerian Bar Association, Okechukwu Wali (SAN) left, and Governor Chibuike Amaechi of Rivers, during a thanksgiving service in honour of Wali in Port Harcourt, on Sunday

The Bureau of Public Enterprises (BPE) yesterday named a
consortium, which includes Transcorp Nigeria Plc,  chaired by former group managing director,
UBA Plc, Tony Elumelu as the highest bidder for the Ughelli Power Plc with an
offer of $300 million.

The result was announced by Chairman, Technical Committee,
National Council on Privatisation (NCP), Mr Atedo Peterside at the opening of
the financial bids for five electricity generation companies.

Our correspondent reports that eight companies bided for the
generation companies located in Geregu, Ughelli, Sapele, Shiroro and Kainji.

For Ughelli Power Plc, the consortium of Transcorp and Wood
Rock/Symbion Power/Medea/PSL/Thomasen emerged as the preferred bidder over
Amperion Power Distribution Ltd and Feniks Electricity.

Amperion, a consortium which includes, Forte Oil Plc, a
petrol marketing firm with majority shares owned by Nigerian businessman, Femi
Otedola, offered $252 million for Ughelli Power to emerge as reserve bidder.

Symbion Power is a United States-based electricity company,
Medea, is a Luxemburg based engineering firm, while PSL is an indigenous firm,
and Thomassen Services, an Oman engineering company.

For Geregu Power Plant, a group known as Amperion Power
Distribution Ltd, which includes, Forte Oil Plc, a petrol firm with majority
shares owned by Nigerian businessman Femi Otedola, won with a bid of $132
million.

Other partners in Amperion include Guernsey a company
located in a UK protectorate in Europe and Shanghai Municipal Electric Power of
China.

For Sapele Power Plc, CMEC/Eurafric Energy JV, a consortium,
which includes First Bank Nigeria Plc, won the bid with an offer of $201
million.

The reserved bidder for Sapele was a group comprising of
construction giant, Julius Berger Nigeria, which offered $106.5 million above
the reserve price of $06 million.

A group, North-South Power Company Ltd, which has Niger
State government as a stakeholder, believed to be backed by former military
president, Ibrahim Babangida won the bid for Shiroro Power Plant with an offer
of $23.6 million.

Other core investors in the company include indigenous firms
XS Energy Ltd, BP Investment Ltd, Urban Shelter Ltd and Road Nigeria Plc.

The “Shiroro Group’’ also has China International Water
Electric and China Three Gorges Corporation, an electric power utility company.

For Kainji, Mainstream Energy Solutions Ltd, a consortium,
which includes Nigerian businessman, Col. Sani Bello and NIGELEC, a Niger
Republic registered company, was declared the preferred bidder with an offer of
$50.7 million.

Chief Executive Officer of Transcorp, Mr Obinna Okudo,  told reporters that his company would
“deliver optimum services to Nigerians.’’

“We are going to let Nigerians know that a Nigerian company
can lead a foremost Nigerian sector (electricity),’’ he said shortly after his
company was announced as the preferred bidder for Ughelli.

Also speaking to reporters, Peterside said the selection of
prospective core investors was hinged on their “technical competence and
financial capability.’’

“You need technical knowledge to run your company, and also
financial capacity to expand it.’’

The NCP chairman argued that there was no controversy over
the sale of generation plants in Kainji and Shiroro located in Kwara and Niger
states, respectively.

“Kainji and Shiroro are hydro assets, you cannot sell River
Niger, and you can only give a consensus to the people utilising it so there is
no controversy over the issue of hydro plants,” he said.

Peterside explained that some of the companies disqualified
for the bid submitted their proposals late, and some were not up to standard,
while others failed to pay the required fees.

Earlier, the Director-General of BPE, Ms Bolanle Onagoruwa,
had assured investors of NCP commitment to international best practice in the
sale of the 17 Power Holding of Nigeria (PHCN) successor companies.

Eleven distribution companies and six generation companies
are put up for sale under the Federal Government’s privatisation programme.

Onagoruwa said: “We wish to reaffirm that the National
Council on Privatisation (NCP) will continue to ensure that electricity sector
privatisation transactions are completed to the best of internationally
accepted standards.

“We have come so far and achieved so much since mid-2010
when this administration restarted the electricity sector reform programme.

“With your support and with the strong desire to serve our
patient and long-suffering citizens of Nigeria, we will continue to strive to
achieve even more and ultimately succeed,’’ she said in her opening address at
the bid ceremony.