FG to sell-off nation’s power plants, slashes price to $1bn from $5bn
Maureen Aguta
The Federal Government is currently in talks with investors for the sale of the nation’s five power plants, built over the years through the National Integrated Power Projects (NIPP), with report indicating that the proposed cost of the transaction could be rock-bottom.
The PUNCH, quotes sources close to the transaction, which is being handled by the Bureau for Public Enterprises (BPE), as saying that the price could be as low as $1.15 billion, for the plants, which real values is said to exceed $5 billion based on international benchmarks.
Though the report quotes Ignatius Ayewoh, Acting Director-General of BPE, as saying: “The transaction is ongoing. is not concluded,” thus confirming the deal, the BPE boss was said not to have disclosed the cost for the five plants, as he quickly stated that he was in a meeting and would not be able to give additional details.kip Ad
But the paper, cited “impeccable sources” at the bureau to have named the five power plants to include the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State, as well as the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.
The report, which said the Omotosho plant, which has four power generating turbines, might be sold at about $85 million the price tag on that of Olorunsogo NIPP with also four turbines was put cost $170 million, adding that through the transaction the nation hoped to rake in over N260 billion (around $600 million). \
Also quoting sources, the paper reported that the development had already begun to attract negative reactions, with many Civil Society Organisations (CSOs), railing against it with the argument that the amount would not significantly impact the rising budget deficits at the time.
Though neither the BPE boss nor the Niger Delta Power Holding Company, (NPHC), which manages the NIPPs, has confirmed its sale, the paper reports, it quoted sources as putting the initial estimates for individual NIPPs to range from $300 million to $500 million.