• Saturday, December 09, 2023
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NELMCO begin plans to auction PHCN non-core assets

NELMCO begin plans to auction PHCN non-core assets

Nigerian Electricity Liability Management Company (NELMCO) has commenced plans to sell or lease some old assets such as 16-storey Eko Electric building in Lagos, corporate headquarters of Kano Electricity Distribution Company (KEDCO), a proposed head office for Ibadan Disco, among other properties belonging to the defunct Power Holding Company of Nigeria (PHCN) across the 36 states.

The development is in line with the next phase of power privatisation exercise.

NELMCO was designated to assume responsibility for all of the PHCN liabilities leading up to the November 1, 2013 handover of the companies, as well as the management of the noncore assets of the companies, prior to disposition of same.

It administers the stranded debts, settles PHCN’S Power Purchase Agreement (PPA) debts obligations, legacy debts, and sells, lets, mortgages as well as dispose of any of the property or non-core assets of the company.

In its latest letter to prospective bidders, NELMCO invites buyers for property such as 8 story building at N0. 1-2, Ahmadu Bello Way Kaduna, Kaduna state available for lease, 4-bedroom detached bungalow at 16A, Western Way GRA, Zaria, Kaduna State, a fully operational Tank Farm with capacity of 12,820 metric tonnes and storage building at Old Ijora Power Station, Ijora Olopa, Idodo, Lagos State.

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“NELMCO in pursuant of her mandate have gotten the approval of the National Council on Privatisation (NCP) to appoint sales agents and offer the under listed properties for sale to interested members of the public,” Adebayo Fagbemi, CEO NELMCO said in a letter seen by Businessday.

Other properties available for auctioning includes a 16-storey building occupied by Eko Disco located at 24/25, Marina Street, Lagos, available for lease, proposed head office of Ibadan Disco located at Kenneth Dike Road, Bodija, in Ibadan North local government, Oyo State, and corporate headquarters of KEDCO, located at 1 Niger Street, Nasarawa Kano, Kano State.

NELMCO asked prospective bidders to pay an application fee of N50,000 alongside evidence of Certificate of Registration with the Corporate Affairs Commission (CAC), current tax clearance certificate, valid means of identification, and proof of financial capability and source of funding.

Last month, NELMCO announced the Federal Government has a total liability of N823 billion remaining in the inherited stranded debts of the defunct PHCN.