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| Alhaji Aliko Dangote |
Our correspondent gathered that the prequalified companies, including Dangote Industries Limited and Oando Plc, started going round the country to conduct physical due diligence on the firms a fortnight ago.
Indian giant, Essar Consortium; Honeywell Energy Resources International Limited, Kenya Electric Generating Company, Odu’a Distribution Company Limited and Rockson Engineering are among other prominent firms participating in the due diligence exercise.
Before the physical due diligence inspection began, the Bureau of Public Enterprises had opened the door for the companies to conduct virtual due diligence through the virtual data room.
The spokesman of the BPE, Mr. Chukwuma Nwokoh, confirmed to our correspondent in a telephone conversation on Tuesday that the prospective bidders had started conducting physical due diligence on the successor companies.
Our correspondent learnt that the BPE had, at a pre-due diligence conference in Abuja mid October, drawn a schedule for the bidders to visit the companies.
The PHCN successor companies include 11 distribution firms, six generation companies and one transmission company – the Transmission Company of Nigeria.
Among the distribution companies that are up for sale are the Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Eko Electricity Distribution Company Plc; Ibadan Electricity Distribution Company Plc; and Ikeja Electricity Distribution Company Plc.
Others are Jos Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.
The thermal power stations include the Ughelli Power Plc, which is situated in Delta State, with total installed capacity of 972 megawatts; and the Geregu Power Plc, situated in Kogi State with a total installed capacity of 414MW.
Others are the Afam Power Plc comprising the Afam I-V power stations and located in Rivers State with combined installed capacity of 776MW; and the Sapele Power Plc located in Delta State with an installed capacity of 1,020MW.
The hydro power generating companies are the Kainji Power Plc comprising the Kainji and Jebba power plants located in Niger and Kwara states respectively; and the Shiroro Power Plc located at the Shiroro Gorge, Niger State.
The BPE had on September 1, 2011 issued Request for Proposals to prospective bidders for the 17 firms.
RFPs are forms on which intending privatisation advisers and potential core investors make their proposals on an offer announced by BPE. The agency usually calls for RFPs before calling for detailed technical and financial bids.
According to a reversed transaction timetable issued by the privatisation agency in July, the deadline for submission of bids for the generation companies is January 16, 2012, whereas the deadline for the submission of bids for the distribution companies is January 30, 2012.
The evaluation process for the distribution firms is expected to be completed on February 14, 2012, while that for the distribution companies will be completed on February 28, 2012.
Potential bidders, according to BPE, should be existing power distribution companies or core investor groups with power distribution companies as long-term technical partners.
Successful bidders 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 as set out in the National Electric Power Policy. (credit: Punch)
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