FG Plans Sale Of 10 Power Stations

In line with its power sector reforms, the Nigerian government has expressed its plans to find strategic investors who will purchase 80 percent stakes in 10 thermal power stations spread across the country.

The plan to put on sale most of the thermal stations which were built under the National Integrated Power Project (NIPP), is also in consonance with the objectives of Niger Delta Power Holding Company (NDPHC) a special purpose firm owned by the three tiers of Nigerian government.

The NIPP was conceived in 2004 as a fast-track government funded initiative to stabilise Nigeria’s electricity supply system while the Electric Power Sector Reform Act (EPSRA) of 2005 took effect.

The NIPP was originally designed around seven medium sized gas fired power stations in the gas producing states, and the critical transmission infrastructure needed to evacuate the added power into the national grid.

Meanwhile, there are strong indications that the move will rekindle and attract the interest of prospective investors bidding for the purchase of the 80 percent stakes in the advertised power stations for bidders.

Setting criteria for prospective investors in the 10 thermal stations, the NDPHC said such investors must come to the negotiation table with proven experience in the field of power generation company, a company that owns and/or operates utility size of power plants, while in the case of a consortium at least one of the consortium members must be an experienced power generation company (the technical partner).

The technical partner, according to the regional power holding company, shall be responsible for providing operation, maintenance and management services under a long term agreement.

The NDPHC also explained that prospective bidders should register their interest by completing requisite forms online via the NIPP transaction website (www.nipptransaction.com), or submit to its Abuja office on or before June 28, 2013.

The 10 generation companies for which bidding is invited are; Alaoji Generation Company Limited-situated near Aba in Abia state with installed capacity of 831.3 MW, Benin Generation Company Limited with installed capacity of 507.6 MW, Calabar Generation Company Limited with installed capacity of 634 MW, Egbema Generation Company Limited near Owerri in Imo State with installed capacity of 380.7 MW, Gbarain Generation Company Limited near Yenagoa in Bayelsa State with installed capacity of 253.8 MW.

Others are, Geregu Generation Company situated in Ajaokuta in Kogi State with installed capacity of 506.1 MW; Ogorode Generation Company Limited Sapele, Delta State with installed capacity of 507.6 MW; Olorunsogo Generation Company Limited situated in Ogun State with installed capacity of 754 MW; Omoku Generation Company Limited Port Harcourth, Rivers State with installed capacity of 264.71 MW; and Omotosho Generation Company Limited in Ondo State with installed capacity of 512.82 MW.