NCP Approves Recent Bids For PHCN GENCOs And DISCOs

The National Council on Privatisation under the chairmanship of the Vice President, Arc Mohammed Namadi Sambo, at its sixth meeting for 2012 which held today, at the State House, Abuja, deliberated on the outcome of the recent financial bid opening for PHCN Successor Generation Companies (GENCOs) and Successor Distribution Companies (DISCOs), which was conducted by the Bureau for Public Enterprises (BPE).  However, the NCP disqualified Southern Electricity Distribution Company for submission of multiple bids for Benin Disco. The approved bids are as enumerated below.
The meeting also approved the next steps for the conclusion of the privatization of the PHCN generation and distribution companies as follows:
1) After the approval of the results of the financial bids by Council, the highest ranked bidder for each Generation or Distribution Company will be required to post an additional bid security (“Preferred Bidder’s Bank Guarantee”) in the form of a Letter of Credit or Bank Guarantee for fifteen percent (15%) of the transaction value within fifteen (15) business days of notification from the Bureau of Public Enterprises. The Preferred Bidder’s Bank Guarantee shall be from a Standard & Poor (S&P) or Moody & Fitch “A” rated foreign bank with a correspondent bank in Nigeria or a Nigerian bank rated “A” by a Rating Agency approved by SEC and be valid through twenty-one (21), calendar days after the stipulated proposal validity period or any extended proposal validity period.
2) The designated Preferred Bidder will be invited for negotiations with BPE. Within fifteen (15) Business Days after signing of the Sale and Purchase Agreement, the Shareholders’ Agreement or the Performance Agreement ‘whichever is earlier, or at a mutually agreed earlier time, the Bidder shall make a down payment of twenty-five percent (25%) of the share purchase price.
3) Within six (6) months after signing of the Sale and Purchase Agreement or the Shareholders’ Agreement, whichever is earlier or mutually agreed upon time, the Bidder will be required to pay the outstanding seventy five per cent (75%) of the share purchase price to complete the transaction. Upon receipt of payment, the Preferred Bidder’s Bank Guarantee will be returned to the bidder within a maximum of four (4) weeks.
4) After the completion of payment, the handover of the successor company to the Preferred Bidder will conclude the transaction.
APPROVED BIDS FOR PHCN GENERATION COMPANIES (GENCOS)
NCP approved that Amperion Power Distribution Company Limited with a bid of USD$132,000,000 is the preferred bidder for the core investor sale of 51% shares of Geregu Power Plc;
It also approved that Mainstream Energy Solutions Limited which offered an annual fee of USD$50,760,665.18 and a commencement fee of USD$257,000,000 is the preferred bidder for the concession of Kainji Hydro Power Plc;
NCP approved that North-South Power Ltd which offered an annual fee of USD$23,602,484.87 and a commencement fee of USD$111,654,534 is the preferred bidder for the concession of Shiroro Hydro Power Plc;
The privatization body also approved that Transcorp/Woodrock/Sumbion/Medea/PSL/ Thomassen with a bid of USD$300,000,000 is the preferred bidder for the core investor sale of 100% shares of Ughelli Power Plc;
NCP also approved that Amperion Power Distribution Company Limited with a bid of USD$252,000,000 is the reserve bidder for the core investor sale of 100% shares of Ughelli Power Plc;
NCP approved that CMEC/EURAFRIC Energy JV Consortium with a bid of USD$201,000,000 is the preferred bidder for the core investor sale of 100% shares of Sapele Power Plc;
NCP approved that JBN-NESTOIL Power Services Ltd with a bid of USD$106,500,000 is the reserve bidder for the core investor sale of 100% shares of Sapele Power Plc; and
Given that Amperion is the preferred bidder for Geregu Power Plc, NCP also approved that Feniks Electricity Limited would be the reserve bidder for Ughelli Power Plc subject to their bid being revised to match the reserve price.
NewsDiary