54 investors bid for 11 electricity distribution firms

Minister of Power, Professor Barth Nnaji

The Bureau of Public Enterprises on Tuesday received technical and financial proposals from 54 potential   investors interested in acquiring stakes in eleven electricity distribution companies.

 The agency, in a statement signed by its Head, Public Communications, Mr. Chukwuma Nwokoh, said the move was in line with the timetable for the privatisation of the distribution companies created from the unbundling of the Power Holding Company of Nigeria.

 The revised timetable had July 31, 2012, as deadline for receipt of technical and financial bids from the potential investors.

The breakdown of the bids received  for the eleven distribution companies slated for privatisation is as follows: Abuja Electricity Distribution Company Plc, five; Benin Electricity Distribution Company Plc, seven; Enugu Electricity Distribution Company Plc,four; Eko Electricity Distribution Company Plc, nine; Ibadan Electricity Distribution Company Plc, seven;  and Ikeja Electricity Distribution Company Plc, 10.

Others are Jos Electricity Distribution Company Plc, two; Kaduna Electricity Distribution Company Plc, two; Kano Electricity Distribution Company Plc, two; Port Harcourt Electricity Distribution Company Plc, three; and Yola Electricity Distribution Company Plc, three.

The BPE explained that prospective core investors, who must be local and/or international power distributors or investors with power distributors as technical partners, would be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government.

The transaction timetable revealed that the evaluation of the technical bids would take place between August 14 and 28, 2012.

The National Council on Privatisation, according to the statement, will approve the results of the technical evaluation by September 11, 2012.

The deadline for the shortlisted bidders for generation companies to submit their letters of credit is September 18, 2012 while October 2, 2012 is the deadline for shortlisted bidders for distribution companies, the BPE added.

It said, “Consequently, NCP’s approval will pave the way for the opening of financial bids of the shortlisted investors.

“The BPE will on September 25, 2012, open the financial bids of prospective investors for the generating companies while October 10, 2012 is the date for the opening of the financial bids for the distribution companies.

“The announcement of the preferred bidders for the generating companies is October 9, 2012 while October 23, 2012 is the date for the announcement of the preferred bidders for the distribution companies.”

Source: The Punch