Post by Emmanuel A. O. on Aug 22, 2013 14:07:05 GMT 1
FG May Have N358.04Bln Selling 15 PHCN
The Federal Government may have raked in about N358.045 billion ($2.238 billion) from the sale of 15 Power Holding Company of Nigeria, PHCN, successor companies, which transaction deadline ended yesterday.
The amount represents 7.18 percent of the national budget of N4.987 trillion in 2013, making it the biggest privatisation sales ever in the history of Nigeria and Africa.
The sum is derived from the $559.44 million already paid by the 14 bidders as 25 percent of the total cost of their bids for the respective distribution (Discos) and Generation (Gencos) companies unbundled from PHCN.
Economic experts have already called for prudence in the spending of the funds, saying “the government should account for the disbursement of the money properly; it should not be used for politics.”
But there wasn't official confirmation on the proceeds realised from the National Council on Privatisation, NCP, or the Bureau of Public Entreprises, BPE, which executed the sales.
Photo - PHCN: FG rakes in N358.04bn
NCP Chair speaks
Chairman, Technical Committee of NCP, Mr. Atedo Peterside, said that at least 13 of the 14 bidders that had paid their 25 percent bond for the 15 PHCN successor companies beat the 5p.m. yesterday deadline for the payment of the balance of 75 percent of their bids, according to Vanguard.
Mr Peterside said: “I can confirm that nine bidders out of the 10 for the Discos paid, four out of the five Gencos paid, one partially paid because of issues with banks transfers.
“But we will only be able to say for sure by tomorrow (today) how much was realised. Don’t forget some paid in Dollars and some in Naira, and for some of those who paid in Dollars, the amount will not hit our bank until tomorrow.”
Successful bidders
Among those that met the payment deadline were Interstate Electrics Limited, Enugu Disco; Vigeo Consortium, Benin Disco; Integrated Energy Distribution & Marketing Company, Ibadan and Yola Discos, respectively; 4Power Consortium, Port-Harcourt Disco, and Aura Energy for Jos Disco.
Others are West Power & Gas, for Eko Disco; NEDC/KEPCO, Ikeja Disco; Transcorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy Ltd, Kainji Power Plc; Kann Consortium, Abuja Disco; Sahelian Power SPV, Kano Disco; Amperion Power Company Limited, Geregu Power Plc, and North-South Power Company for Shiroro Power Plc.
Taking possession
By this payment, the bidders are now closer to taking possession of the respective PHCN distribution and generation companies they bided for, following approval by the Federal Government.
This is even as organised labour has criticised the transaction in view of outstanding issues.
However, any bidder which was unable to pay the balance of the 75 percent will lose the 25 percent already paid, and the slot for ownership for the company will be given to the reserved bidder in that category.
Peterside said: “Any bidder that failed to meet his obligation will lose the slot for that company, and we will hand it over to the reserved bidder.”
Although he refused to give more details, he expressed delight that the process had ended seamlessly, adding that it was left for the new owners to get to work and give power to Nigerians.
From: Vanguard
The Federal Government may have raked in about N358.045 billion ($2.238 billion) from the sale of 15 Power Holding Company of Nigeria, PHCN, successor companies, which transaction deadline ended yesterday.
The amount represents 7.18 percent of the national budget of N4.987 trillion in 2013, making it the biggest privatisation sales ever in the history of Nigeria and Africa.
The sum is derived from the $559.44 million already paid by the 14 bidders as 25 percent of the total cost of their bids for the respective distribution (Discos) and Generation (Gencos) companies unbundled from PHCN.
Economic experts have already called for prudence in the spending of the funds, saying “the government should account for the disbursement of the money properly; it should not be used for politics.”
But there wasn't official confirmation on the proceeds realised from the National Council on Privatisation, NCP, or the Bureau of Public Entreprises, BPE, which executed the sales.
Photo - PHCN: FG rakes in N358.04bn
NCP Chair speaks
Chairman, Technical Committee of NCP, Mr. Atedo Peterside, said that at least 13 of the 14 bidders that had paid their 25 percent bond for the 15 PHCN successor companies beat the 5p.m. yesterday deadline for the payment of the balance of 75 percent of their bids, according to Vanguard.
Mr Peterside said: “I can confirm that nine bidders out of the 10 for the Discos paid, four out of the five Gencos paid, one partially paid because of issues with banks transfers.
“But we will only be able to say for sure by tomorrow (today) how much was realised. Don’t forget some paid in Dollars and some in Naira, and for some of those who paid in Dollars, the amount will not hit our bank until tomorrow.”
Successful bidders
Among those that met the payment deadline were Interstate Electrics Limited, Enugu Disco; Vigeo Consortium, Benin Disco; Integrated Energy Distribution & Marketing Company, Ibadan and Yola Discos, respectively; 4Power Consortium, Port-Harcourt Disco, and Aura Energy for Jos Disco.
Others are West Power & Gas, for Eko Disco; NEDC/KEPCO, Ikeja Disco; Transcorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy Ltd, Kainji Power Plc; Kann Consortium, Abuja Disco; Sahelian Power SPV, Kano Disco; Amperion Power Company Limited, Geregu Power Plc, and North-South Power Company for Shiroro Power Plc.
Taking possession
By this payment, the bidders are now closer to taking possession of the respective PHCN distribution and generation companies they bided for, following approval by the Federal Government.
This is even as organised labour has criticised the transaction in view of outstanding issues.
However, any bidder which was unable to pay the balance of the 75 percent will lose the 25 percent already paid, and the slot for ownership for the company will be given to the reserved bidder in that category.
Peterside said: “Any bidder that failed to meet his obligation will lose the slot for that company, and we will hand it over to the reserved bidder.”
Although he refused to give more details, he expressed delight that the process had ended seamlessly, adding that it was left for the new owners to get to work and give power to Nigerians.
From: Vanguard