Ten years after, the Nigerian Government has officially presented a post-privatization discharge certificate for the acquisition of the 972MW natural gas fired Ughelli Power Plant, in Ughelli, Delta State to Mr. Tony Elumelu’s Transcorp Power Limited, having satisfied the Key Performance Indicators (KPIs) contained in the Share Sale and Purchase Agreements (SSAPs) on critical national assets.
Vice President Yemi Osinbajo, who doubles as the Chairman of the National Council of Privatization (NCP) presented the discharge certificate at the NCP meeting attended by Mr. Tony Elumelu, Group Chairman, Transnational Corporation Plc (Transcorp), owners of Transcorp Power on Monday.
EnergyDay’s check showed that in 2013, Transcorp Power Limited (TPL), acquired the 972MW gas-fired Ughelli Power Plant, through a 20 years concessionary deal in November 2013, after winning the $300m competitive bidding process. Since then, the power plant formerly known as Delta Power Station (known as Delta III) has been phenomenally transformed by Elumelu’s Transcorp.
In his remark, Professor Osinbajo said, “Handing over key national assets only to serious-minded investors is the right approach to privatization and the commercialisation of public assets.
“The electricity needs of our country are great and thus, we believe the right approach is the steady privatization of national power assets to enable private sector players to invest in the provision of public power and allied utility.
“I am in high spirits with the way the NCP conducted the privatization process, which I believe is for the ultimate benefit of our country.
“Post privatisation monitoring is an important aspect of the Federal Government’s privatisation programme. Transcorp Power has been able to ensure compliance and surpassed expectations with all post privatisation deliverables.
Professor Osinbajo warned that “This being the first, should not be the last post privatisation discharge event. He also commended the management of Transcorp Power PLC under Mr. Elumelu and the Bureau of Public Enterprises (BPE) for working together to delist Transcorp Power.
Elumelu, while commending the Federal Government for ending routine post-privatisation monitoring activities of the Bureau of Public Enterprises (BPE) of the asset, said that Transcorp has driven a strong indigenous agenda on the plant, apart from the need to fulfill the post privatisation performance criteria.
He said, “The power plant is fully managed and operated by Nigerians. We have created jobs and reduced unemployment in the country through the asset. Safety is very important to us as well, since we began operations in 2013, we have recorded zero incidents to date.”
Alex Okoh, Director-General of the Bureau of Public Enterprises, commended the board and management of Transcorp for 10 years of managing the asset and turning it around.
He said, “Transcorp Power increased the generation capacity of the plant by 227% from the operational status as at handover in 2013.”
“The capital expenditure totaling N58.612 billion was covenanted for phase1, phase 2 as “additional investment” but the actual investment made by Transcorp was the sum of N83.85 billion, leading up to a score of 143%.
EnergyDay’s check on the asset showed that Transcorp power acquired the country’s largest fossil-fuel-based power generating station when it was doing 160MW.
Transcorp Power has increased the available capacity to 680.83MW (being a 227% increase) within four years of the takeover, surpassing BPE’s 5-year performance target of 670MW, targeting over 900MW capacity mark.