10 August 2012 – Nigeria’s Bureau of Public Enterprises (BPE) has received technical and financial proposals from 54 potential investors interested in buying Nigeria’s electricity distribution companies.
Nigeria’s BusinessDayonline reports that the breakdown of the bids received at the 31st of July deadline for the eleven distribution companies slated for privatisation shows that the Abuja Electricity Distribution Company received five bids from prospective investors; Benin Electricity Distribution Company seven bids; Enugu Electricity Distribution Company four bids; Eko Electricity Distribution Company nine bids; Ibadan Electricity Distribution Company seven bids; Ikeja electricity Distribution Company 10 bids; Jos Electricity Distribution Company two bids; Kaduna Electricity Distribution Company two bids; Kano Electricity Distribution Company two bids; Port Harcourt Electricity Distribution Company three bids; and Yola Electricity Distribution Company three bids.
Prospective core investors, who must be local and/or international power distributors or investors with power distributors as technical partners, will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the federal government of Nigeria.
The transaction timeline reveals that the evaluation of the technical bids will take place between August 14th and 28th, 2012. The National Council on Privatisation (NCP) will approve the results of the technical evaluation by September 11, 2012.
The deadline for the shortlisted bidders for generation companies to submit their letters of credit is September 18th, 2012, while October 2, 2012 is the deadline for shortlisted bidders for distribution companies. Consequently, NCP’s approval will pave the way for the opening of financial bids of the shortlisted investors.
The BPE will open the financial bids on September 25th, 2012 for prospective investors for the generating companies, while October 10th, 2012 is the date for the opening of the financial bids for the distribution companies.
The announcement date of the preferred bidders for the generating companies is October 9th 2012, while October 23, 2012 is the date for the announcement of the preferred bidders for the distribution companies.
The Nigerian electricity industry is being unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.
The bidders for the various distribution companies include:
For Ikeja electricity distribution company: Rockson Engineering Ltd; SEO International, Oando Consortium; Amperion Power Distribution Co Ltd; Honeywell Energy Resources International Ltd; Integrated Energy Distribution & Marketing Ltd; West Power & Gas Ltd; Vigeo Holdings; African Corporation AFC & CESC Consortium; Daniel Power Plant Company Nigeria Ltd; and KEPCO/NEDC Consortium.
For Eko electricity distribution company: Oando Consortium; Integrated Energy Distribution & Marketing Ltd; NPD Consortium; SEPCO-Pacific Energy Consortium; West Power & Gas; Electric Utilities Nigeria Ltd; KEPCO/NEDC Consortium; ENL Consortium Ltd; and Honeywell Energy Resources International Ltd.
For Ibadan electricity distribution company: Western Consortium; ENL Consortium Ltd; Integrated Energy Distribution & Marketing Ltd; Skipper Nigeria Ltd; ICOMM Energy Ltd; Electric Utilities Ltd; and KEPCO/NEDC Consortium.
For Benin electricity distribution company: Southern Electricity Distribution Company; Cable & Rods Company Nigeria Ltd; Copper Belt Consortium; Rockson Engineering Company Ltd; RENSMART Power Ltd; Duncan Freeman Company/Draytom Energy Ltd; and Vigeo Power Consortium.
For Abuja electricity distribution company: Skipper Nigeria Ltd; NAHCO Power Consortium; KANN Consortium Utility Company Ltd; Interstate Electrics Ltd; and ENL Consortium Ltd.
For Enugu electricity distribution company: Rensmart Power Ltd; Proglobal Power International Consortium; Interstate Electrics Ltd; and Eastern Electric Nigeria Ltd.
For Port Harcourt electricity distribution company: Utility Integrated Management Services Ltd; Rockson Engineering Company Ltd; and Power Consortium.
For Yola electricity distribution company: SNECOU Group of Companies Ltd; Vivadis Power Ltd (ORTECH Consortium); and Integrated Energy Distribution & Marketing Ltd.
The trio of Jos, Kaduna and Kano has two bidders each apparently due to the security situation in the northern part of the country and also because of the low level of power consumption in these areas.
For Jos the bidders are: SNECOU Group of Companies Ltd; Vivadis Power Ltd (ORTECH Consortium); and Integrated Energy Distribution & Marketing Ltd.
For Kaduna the bidders are: Energy & Power Ltd; and Skipper Nigeria Ltd.
For Kano the bidders are: Sahelian Power SPV Ltd; and Profile Energy Consortium Ltd.