FG hands over power plants to investors Monday

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."