There are indications that the deadline for the payment of the 75 per cent balance for the unbundled firms of the Power Holding Company of Nigeria (PHCN) has been successful, with ten firms out of a total of fourteen meeting the deadline.
Although the Bureau of Public Enterprises, the government agency in charge of the privatization process, has declined to comment on the outcome, sources within the bureau said that as at the expiration of the deadline, only four bidders for the power assets were yet to pay their balance.
Efforts made to confirm this from officials of the BPE proved abortive as phone calls and short messages to the bureau’s spokesman were not answered.
But the minister of power, Prof. Chinedu Nebo, said earlier yesterday that they were getting positive responses from the bidders.
Nebo, who said this in Abuja during a briefing on the outcome of the weekly Federal Executive Council (FEC) meeting, expressed the hope that the bidders would meet the deadline as many of them had responded positively as at Tuesday.
“As many of you already are aware, today is the last day for the payment of the 75 per cent of the remaining amount of the money owed by the preferred bidders of the GENCOs (generating companies) and DISCOs (distribution companies) that have been privatised,” he said. “And I’m very happy to announce to you that we are getting very positive results — that many of these GENCOs and DISCOs are living up to expectations.’’
Nebo said government had no plan to extend the deadline as the company that came second in the bidding process “are waiting desperately to pay’’.
The Federal Government is expecting to receive about N264 billion as full payment if the 75 per cent is paid for all 15 distribution and generation companies. This will bring the total proceeds for the privatization of the 15 successor companies to N352 billion, when the N87.8 billion received earlier as 25 per cent payment on March 21, 2013 is added.
A breakdown of the payment indicates that Integrated Energy Distribution & Marketing Company, which won the bids for Ibadan and Yola distribution companies, had a financial commitment of $171 million broken down as $126.75 million for Ibadan and $44.25 million for Yola respectively. The company earlier paid $42.25 million and $14.75 million respectively for the two Discos.
4Power Consortium is paying $93 million being 75 per cent balance for Port Harcourt Distribution Company. The company earlier paid $31 million; Interstate Electrics Limited, which earlier paid $31.5 million for Enugu Distribution Company, would balance $94.5 million to take possession of the company. North-South Power Company which paid $27.9 million for Shiroro Power Plc is balancing $83.7 million. The company obtained an $82 million financing deal from UBA Plc and UBA Capital to finance the acquisition.
Vigeo Consortium is paying the balance of $96.75 million for Benin Distribution Company having paid USD $32.25million earlier.
Transcorp/Woodrock Consortium, CMEC/EUAFRIC Energy JV, Kann Consortium and Aura Energy are balancing $225million, $150.75 million, $143 million and $61.38 million for Ughelli Power Plc, Sapele Power Plc, Abuja Distribution Company and Jos Distribution Company respectively. The companies earlier paid $75 million, $50.25 million, $41 million and $20.46 million respectively.
Also, Mainstream Energy Ltd, Sahelian Power SPV, NEDC/KEPCO, West Power & Gas and Amperion Power Company Limited are paying $178.4 million, $102.75 million, $98.25 million, $101.25 million and $99 million respectively for Kainji Power Plc, Kano Distribution Company, Ikeja Distribution Company, Eko Distribution Company and Geregu Power Plc, having earlier paid $59.47 million, $34.25million, $32.75 million, $33.75 million and $33 million.