The National Council on Privatisation (NCP) has approved the sale of 70 percent of Egbin Power Plant in Lagos at the cost of $407.3 million to KEPCO, a Korean firm.
The council also approved Omotosho power plant in Ondo State and Olorunsogo power plant in Ogun State for sale to the Chinese firms constructing them.
Atedo Peterside, chairman, Technical Committee of NCP, who announced this to State House correspondents after the council ended its meeting chaired by Vice President Namadi Sambo at the Presidential Villa, Abuja, said the Geregu power plant value was
increased to $600 million, as against $549 million valuation of 2007 when the Federal Government began negotiations to sell only 51 percent equity of the plant to the same firm.
Peterside disclosed that “it made more sense to NCP to offer the plants on right of first refusal to the Chinese firms since they would naturally understand the plants better and have agreed to a sale price the council considered reasonable enough”.
He disclosed that except for Afam plant “every other power plant owned by PHCN now has a core investor”.
Akin Akinfetiwa, CEO of Forte Oil, a partner of Amperium Consortium, presented a confirmation of payment of $33 million including local component
of N519.12 million into NCP account, being 25 percent down payment for acquiring 51 percent of Geregu power plant.
The firm was given 15 days grace but the firm owned by business mogul, Femi Otedola, paid the purchase sum immediately after the approval was granted and the meeting ended.
The NCP also deliberated on the report of the progress being made by the attorney-general of the federation on the issue of arbitration delaying the privatisation of the Ajaokuta Steel Plant and Aluminium Smelter Company of Nigeria (ALSCON).
This was made known by Mines and Steel Development Minister, Sani Sada, who disclosed that the feuding parties had their
initial meeting to settle out of court, adding that “some useful discussions to take the resolution further are ongoing”.
According to him, “We are beginning to see that very soon we are likely to conclude some of those issues, such that BPE will take full charge of these two important facilities and are appropriately privatised, not the way it happened before that is now putting us into these issues”.
Minister of communications technology, Omobola Johnson, also announced the NCP’s approval of five draft bills for onward transmission to the Federal Executive Council (FEC) for further approval. They are Inland Waterway; Ports; Railways; Road Sector, and National Transport Commission.
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