Nigeria’s plant privatisation gets underway

• 10 years ago (2014-03-08)
• Junior Isles

Africa 303

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Nigeria’s Niger Delta Power Holding Company Limited (NDPHC) has opened bids for privatising its ten power plants, built by the Nigerian government under the National Integration Power Projects, (NIPPs).

Firms were competing for an 80 per cent equity stake in the various plants, with only 42 out of 66 acquisition proposals received passing due diligence.

The ten power plants receiving bids included Alaoji Generation Company Limited, Calabar Generation Company, Egbema Generation Company, Gbarain Generation Company, Geregu Generation Company, Ogorode Generation Company, Olorunsogo Generation Company, Omoku Generation Company, Omotosho Generation Company and Benin Generation Company.

At the end of the financial bids, AITECO paid $902 million for Alaoji, after its initial bid of $680 million was below the reserve bid mark. For Calabar plant, EMA Consortium emerged the preferred bidder with an offer of $625 million, and again for Benin plant with an offer of $580 million.

For Egbema plant, Dozzy Integrated Power Limited emerged as the preferred bidder with an offer of $415.7 million, while Shayobe International Limited Consortium was the preferred bidder for Omoku plant with an offer of $318.7 million

ENL Consortium Limited was the preferred bidder for Olorunsogo plant with an offer of $751.24 million, and Daniel Power Consortium preferred bidder for Ogorode plant with an offer of $531.78 million. Seoul Electric Power emerged the preferred bidder for Geregu plant with a $690.2 million bid, with KDI Energy Resources successful with a $340 million bid for Gbarain plant.

Finally, for Omotosho plant, Omotosho Electric Company Limited posted the highest bid of $659.999 million.