16 Firms Pre-Qualified For Five NIPP’s Privatisation

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A total of 16 companies are now pre-qualified for the privatisation of five National Integrated Power Projects across the country, the Federal Government announced on Thursday.

It announced this at the Investor Pre-bid Conference for the privatisation of the five NIPP plants which include Geregu, Omotosho, Olorunsogo, Calabar and Benin-Ihovbor.

The government disclosed this through its Bureau of Public Enterprises in a statement issued in Abuja by the Head, Public Communications, BPE, Ibeh Chidi.

The Director-General, BPE, Alex Okoh, outlined the 16 pre-qualified bidders to include Mota-Engil Nig, Amperion Power, Sifax Energy, Pacific Energy Company Ltd and Globeleq Africa Limited.

Others include Geoplex Drillteq Limited, Asfalizo Acquisition Ltd, Launderhill PJB, Lauderhill Tata, Unicorn Power Genco Ltd, Connaught Energy Services Ltd, ENL Consortium Ltd, Ardova Plc, Central Electric and Utilities Ltd, North South Power Consortium and Quantum Megawatt Consortium.

Okoh said the power sector remained a viable investment in Nigeria given the low per-capital megawatts currently being recorded across the country.

He said the interest shown by bidders and the opening up of the generation aspect of the power sector confirmed the vast opportunities that abound in the sector, adding that BPE and other relevant stakeholders were committed to making the sector sustainable.

The BPE boss said the objectives of the pre-bid conference were to address possible questions from the prequalified bidders with regards to the transactions and provide clarity on some issues in the transaction documents as might be necessary.

He said the forum also highlighted the potential in the Nigerian power sector and provided a platform for potential investors to understand the process for the privatisation of the NIPP plants as well as to enable them to prepare their bid documents.

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He was quoted as saying, “This event is a continuation of the Federal Government’s reform of the power sector with the aim of ensuring that assets within the sector are fully utilised and transformed into world-class facilities, through the injection of private sector capital and deployment of more efficient and technical capacity.”

Okoh told the investors that litigations against some of the plants were baseless and frivolous as the bureau and the Niger Delta Power Holding Company were empowered by the bids’ provisions under NIPPs transaction to terminate bids that violated the ground rules.

The statement stated that the event had critical stakeholders in the power sector including the National Electricity Regulatory Commission, Niger Delta Power Holding Company and Nigerian Bulk Trading Company in attendance.

In April 2021, the National Council on Privatisation approved the adoption of a fast-track strategy for the privatisation of the five NIPP plants.

The council also approved the engagement of CPCS Consortium as the technical adviser for the 100 per cent sale of the five power plants, in line with the policy of divesting government shares from thermal generating plants.

Subsequently, the BPE advertised in the national dailies May 6, 2021, calling for Expressions of Interest from prospective investors for the sale of the five plants, with a submission deadline of June 30, 2021.

At the expiration of the deadline for the submission of EOIs, 36 EOIs were duly submitted from the prospective investors and the closure for the receipt of the EOIs was witnessed by the representatives of the Department of State Security Services and the Anti-Corruption and Transparency/Servicom Unit of the Bureau.