Vice-President Namadi Sambo
| credits: File copy
The Federal Government has said it would on Monday
formally hand over the privatized power plants to
private sector investors.
Vice President Namadi Sambo gave the assurance on
Friday in Abuja during a special forum on financing the
power sector reforms for economic development.
The forum, which was supported by the Central Bank
of Nigeria and sponsored by Nigerian Deposit Money
Banks, was aimed at reviewing the contribution of the
banking sector to the reforms in the power sector.
Sambo, who is also the Chairman of the National
Council on Privatization, said that all labour issues with
workers of the Power Holding Company of Nigeria had
been resolved.
To this end, he added that the payment of severance,
pensions and gratuities of all the 47,913 workers
would be settled on Friday (yesterday).
He said, “At the inception of the privatisation
programme, a total of 25 generating companies and
54 distribution companies sent in bids. After a rigorous
and screening process, five bidders for the Gencos
and 10 bidders for the Discos were successful.
“The relevant government agencies have since
February 2013 signed the transaction document. The
winning bidders have also paid their bids in two
instalments of 25 per cent and 75 per cent by the end
of August 2013.
“With their full payment of the transaction amount,
the stage is now set for the formal handing over of the
generation and distribution companies on Monday 30
September, 2013.
“Another major success of the transaction was the
successful resolution of all labour issues. The
agreement reached is being implemented and
payment of severance, pensions and gratuities of all
the 47,913 workers of the PHCN is planned to be
completed today.”
The VP described the response of the private sector to
government’s call to invest in the sector as massive.
This, he added, is a clear demonstration of the
confidence of investors not only in the potential of the
nation but in the government’s commitment to deliver
the dividends of democracy in the power sector.
He said the FG was also implementing an extensive
programme for the upgrading and expansion of power
transmission capacity and called on the banking sector
to support in financing power projects in the country.
“The FG through NNPC, the Nigeria Gas company and
the private sector, is implementing a robust
programme for the realisation of Nigeria gas
masterplan with specific interest in meeting the gas-to-
power demand in the country at a planned cost of
about $8bn.
“Already, $500m out of the $1bn Eurobond would be
utilised as counterpart funding for the implementation
of this project. This is another opportunity for our
bankers to participate,” he added.
He said the FG would, in tandem with the goals and
objective of the National Electric Power Policy,
continue to improve the efficiency and affordability of
power supply.
The VP added that the generation capacity of the
power sector is being improved.
He said, “We are investing in improving the generation
capacity of this country by the construction of Zungeru
hydropower which would add 700 MW at a cost of
$1.2bn; the construction of the Mambilla Hydropower
plant which would add 3,050 MW and we are utilising
$1.7bn from the sale proceed of the NIPP power plant
as counterpart funding for this project that would cost
$6.4bn.”
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