FG begins privatisation of 10 power plants
The Federal Government’s 10 independent power plants built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Project (NIPP) are to be privatised soon.
James Olotu, managing director, of NDPHC, made this known at an interactive session with newsmen in Lagos.
The power plants are Omotoso in Ondo State (450 megawatts), Sapele in Delta (450 megawatts), Geregu in Kogi (434 megawatts), and Olorunsogo in Ogun (750 megawatts) and Ihovbor in Edo (450 megawatts).
Others are Gbarain in Bayelsa (225 megawatts), Alaoji in Abia (450 megawatts), Calabar in Cross River (561 megawatts), Egbema in Imo (338 megawatts) and Omoku in Rivers (225 megawatts).
Olotu explained that a road show to indicate the commencement of the exercise would start in Lagos from Tuesday, June 4 to June 5 with 40 investors.
He said that the road show would be extended to United Kingdom, United States and Hong Kong.
The NDPHC boss confirmed that six of the plants had been completed technically, while the remaining would be completed before 2014.
He explained that the Federal Government would divest 80 percent of its shares in the power plants, while auctioning would involve the Ministry of Power and the Bureau of Public Enterprises (BPE).
Olotu, who did not disclose the expected revenue from the auction, said that proceeds realised would be used to build additional power plants and boost transmission lines in the country.
“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 said.
Olotu stated that the board of directors of the company which has Vice President Namadi Sambo as its chairman, had got the approval of the Federal Government to privatise the plants.
He said the sale became imperative due to the fact that the company has achieved the mandate given to it in 2005.
“The mandate was to build 10 independent power plants across the country with capacity to generate 5000 megawatts 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.
“We are divesting 80 percent stake in each power plant as valued by our financial advisers.