FG opens bids for 100 percent sales of 5 power plants

FG opens bids for 100 percent sales of 5 power plants

FG opens bids for 100 percent sales of 5 power plants

Oredola Adeola

The Federal Government has announced plan to sell five power generating plants including Calabar (563MW) in Cross River state,Benin (Ihovbor) (451MW) in Edo state, Geregu (434 MW) in Kogi State, Olorunsogo in Ogun state, Omotosho (451 MW) in Ondo state, all constructed under the National Integrated Power Project (NIPP). 

This development was made known in a document signed by the Director-General of the BPE, Alex Okoh, and made available to the media. The document called for bids for sales of  the 100 percent shareholding of the government in any of the five companies. 

The sale of the companies according to BPE, will be done through the Bureau of Public Enterprises (BPE), which handles the sales of public assets. 

The development according to BPE, is part of ongoing reform in the Nigerian Electricity Supply sector, and in line with the Nigerian Electric Power Policy and Electric Power Sector Reform (EPSR) Act, 2005.

The Board of Directors of the Niger Delta Power Holding Company (NDPHC) and the National Council on Privatisation, according to the statement, had approved the sales of the companies but the amount expected from the sales was not stated. 

The five power plants are, Geregu Generation Company Ltd with gross installed capacity at ISO condition of 506 Megawatts (MW), Benin (Ihovbor) Generation Company Ltd with 507 MW, Calabar Generation Ltd with 634MW, Omotosho Generation Ltd with 513MW and Olorunsogo Generation Company Ltd with 754MW.

The document said, “Each bidder must be an experienced power generation company that owns and/or operates utility size power plants.

“In case of a consortium, at least one of the consortium members must be an experienced power generation company (the “Technical Partner”).

“The technical partner shall be responsible for providing operation, maintenance and management services under a long term agreement.”

The federal government had in November 2021 said it hoped to realise N434 billion from the sales of three power plants in Geregu, Omotosho and Calabar, which it said would shore up the Federation Account.  According to the breakdown at the time, Geregu power plant was billed to be sold for N140.7 billion; Omotosho Power Plant was to be sold for N151.4 billion while Calabar plant would be available for sale for N143.4 billion.