NCP approves seven power sector reform bills

Vice-President Namadi Sambo
| credits: File copy

The National Council of Privatisation has approved seven new bills meant to push the reform of the nation’s power sector to new levels and will soon be sent to the National Assembly after approval by the Federal Executive Council.

In a telephone interview with our correspondent in Abuja on Monday, the Director of Public Communications, Bureau of Public Enterprises, Mr. Chigbo Anichebe, said the bills were approved by NCP at its second meeting for 2013, which held on February 28.

The reform bills are: the Competition and Consumer Protection Bill, better known as Anti-Trust Bill; Postal Reform Bill; National Transport Commission Bill; Ports and Harbour Bill; National Inland Waterways Bill; Roads Sector Bill; and the Railway Bill.

Meanwhile, the 14 companies that won the bid to purchase majority shareholding in 15 successor companies of the Power Holding Company of Nigeria have until March 21, 2013 and no more to pay the required 25 per cent bid prices, the BPE has said.

Anichebe said none of the prospective core investors had requested for the extension of the deadline.

He said although the 14 companies were originally given 15 working days from the day of the signing of the Share Purchase Agreement to make the 25 per cent payment, the calculation of the 15 working days only started when the final approval by National Council of Privatisation was dispatched to the prospective core investors.

Following the approval of NCP, chaired by Vice President Namadi Sambo, the preferred bidders had paid a total of $335,854,986.15, which the transaction process required them to pay as bid guarantees.

For the Abuja Distribution Company, Kann Consortium paid $24.6m; for Benin Disco, Vigeo Power Consortium paid $19.35m; West Power and Gas paid $20.25m for Eko Disco; Interstate Electrics Limited paid $18.9m for Enugu Disco; while Integrated Energy Distribution and Marketing Limited paid $25.35m for Ibadan Disco.

The NEDC/KEPCO Consortium paid $19.65m for Ikeja Disco; Aura Energy Limited paid $12.3m for Jos Disco; Sahelian Power Limited paid $20.55m for Kano Disco; 4Power Consortium paid $18.64m for Port Harcourt Disco; while Integrated Energy Distribution and Marketing Limited paid $8.89m for Yola Disco.

For the power generation companies, North-South Power Limited paid $16.75m for Shiroro Hydro Power Plc; Mainstream Energy Solutions paid $35.68m for Kainji Hydro Power Plc; CMEC/EURAFRIC Energy Limited paid $30.15m for Sapele Power Plc; Amperion Power Distribution Limited paid $19.8m for Geregu Power Plc; while the Transcorp Consortium paid $45m for Ughelli Power Plc.

The bid guarantees will be returned to the core investors when they make the final payments for the respective successor companies they won.