FG rallies 200 investors for 80% sale in 10 power plants

FG rallies 200 investors for 80% sale in 10 power plants

• How investors can avert militancy, community face-off – Uduaghan

The Federal Government on Tuesday gathered over 200 prospective investors at a road show in Lagos for the sale of 80 per cent stakes in ten power plants, according to Arif Mohiuddin, Vice President (West Africa) of CPCS, the financial advisers and valuers to the privatisation of the plants.

The 10 plants with a combined generation capacity of 5, 000 Mega Watts, he said in a presentation, adding that $200 million is required to construct a 550 Mega Watts plant.

Giving investors a financial guideline for proper bidding, Mohiuddin said that $100 million is required for the construction of 275 Mega Watt power plants.

“For over 275 and up to 550 MW $150 million is needed while $200 million is required to generate above 550 MW,” he said.

Also at the event, governor of Delta state, Emmanuel Uduaghan and his Benue state counterparts, Gabriel Suswan called on the investors to quickly tap into the business advantage, which, according to them, is a guarantee for more fortunes.

Uduaghan, who assured the investors of adequate safety and security in the Niger Delta where most of the plants are situated said: “My advise to the investors is that immediately you buy this plants is that you should sit with the governors and work out a security master plan.

“Another advice is that you should ensure that you sit with the community. This becomes necessary because the people of an environment may not understand why they should not have light, while a plant is situated in their communities.”

Oba of Lagos, Rilwanu Akinolu called on investors to buy into the 10 power plants, describing it as a lucrative venture, calling on the Federal Government not to relent in its efforts to ensure adequate power supply in the country. He stressed that Lagos, like other states should not be left behind in the venture.

Commenting also, Minister of power, Chinedu Nebo assured the investors of Government attempt to break the monopoly of electricity that has formed the caricature of our image as a nation.

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“This is as seen in the transformation agenda launched by the President himself. Mr. President does not and will not tolerate half-measure to this privatisation. The privatisation of power sector is irreversible and we will do all within our power to give needed support to the private sector to drive this process.

“There has been success of privatisation in the telecommunication sector, what we are targeting is that the success of this power sector’s privatisation will dwarf the success in the telecommunication sector.

“We will ensure transparency and accountability in the process as we will use the best possible practices all over the world. I invite you all to come and invest in these ten power plants and others and be a part of history,” he said.

Chief Executive of the Niger Delta Power Holding Company (NDPHC), James Olotu expressed belief that “with the planned privatisation there would be efficiency and effectiveness in the management of the power plants.

“Government can play its role where it has relative advantage. Government will invest little but more on transmission sector so as to build the country’s power infrastructure,’’ he added.

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Olotu said President Goodluck Jonathan, based on the recommendation of the board chaired by Vice President Namadi Sambo, has the sales of the plants, adding that the sale becomes imperative because the company has achieved the mandate given to it from inception in 2005.

He said the mandate was to build 10 independent power plants to generate 5000 mega watts (MW) which has been built but awaiting commissioning.

According to him, “the mandate was to build 10 power plants across the country with capacity to generate 5000MW by end of 2013 and divest it.

“We are confident to tell you that this year will be a year of harvest in the power sector. All the power generating plants will be completed this year. In fact, six plants are ready for commissioning while four others are about to be completed within the next few months,” he said.

According to him, “the process that we went through to ensure that we are where we are today is intrinsic. President Goodluck Jonathan has approved the divestment plan and it would be concluded mid next year.

“Providing stable power supply has been a major priority of this administration and we all know that power business is best managed by private investors.

“We are divesting 80 per cent stake in each power plants as valued by our financial advisers and values. We will retain 20 per cent in order to assure potential investors of our confidence in the plants we are selling,” he stated.

Source: Daily Independent

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