1 October 2012 – The federal government of Nigeria has announced the preferred bidders for the privatisation of the Power Holding Company of Nigeria (PHCN) successor generation companies (Gencos) in bids totalling just over US$707.3 million.

Three thermal plants are up for sale, these being Geregu, Sapele and Ughelli power stations. Two hydroelectric plants are up for sale, these beingShiroro and Kainji.

The preferred bidder for the Ughelli power company was the Transnational Company of Nigeria consortium (Transcorp) with an offer of US$300 million.Chinese Nigeria Power Consortium was declared the preferred bidder for the Sapele power plant with a bid of US$201 million. Mainstream Energy Solutions won the contract to manage the Kainji power company with an offer of US$50.8 million as fixed annual fees and US$237.9 million as a commencement fee.

North-South Power, believed to be backed by former military president Ibrahim Babangida, was declared the preferred bidder for the Shiroro power plant with an offer of US$111.7 million as fixed annual fees and US$236.8 million as a commencement fee.

Amperion Power Distribution, a consortium made up of Israeli-based BSG Resource, State Grid Corporation of China and Forte Oil is the preferred bidder for the 414 MW Geregu power station.The consortium bid US$132 million for the power plant located in Kogi State and was the sole bidder for the Geregu plant.

However, the bid for Afam power plant was not opened as all the three bidders failed to meet the stipulated guidelines. All the winning bids are subject to the approval of the president.

Commenting on its successful bid, chairman of Transcorp, Tony Elumelu, says, "Our intent is to leverage our expertise in turning around businesses in growing the Ughelli power plant to a 1,000 MW facility by 2017."

Out of the 23 bids that made it to the evaluation stage, 10 failed the first test of completeness and responsiveness. The remaining 13 bids were then subjected to full technical evaluation. Out of the 13 bids, eight scored the minimum 75% that was required to proceed to the next stage. The bidders were then asked to submit the post-qualification bidders’ guarantee following the approval of the evaluation results. The emergence of the preferred bidders is not final as they have to meet certain requirements before they can take ownership of the plants.