FG woos investors to 10 power plants

Minister of Power, Prof. Chinedu Nebo

As part of efforts to guarantee effective and sustainable power supply in Nigeria, the Federal Government recently in London encouraged investors to invest in the 10 National Independent Power Plants currently earmarked for privatisation.

The government assured investors of maximum support towards ensuring success.

The roadshow, which marked the beginning of the international investment drive for the divestment of government stakes in the generation assets of the Niger Delta Power Holding Company , started in Lagos and has moved to London for the privatisation of 10 NIPP power plants and will move to Hong Kong and New York subsequently.

At the NDPHC roadshow in London, the Minister of Power, Prof. Chinedu Nebo, spoke on how the power sector reform was taking shape.

He said, “The essence of the privatisation of the power plants is in conformity of the President Goodluck Jonathan administration’s objective in ensuring effective and qualitative power supply in the country.

“This London roadshow is to kick-start the international investment drive for the divestment of government stakes in the generation assets of the Niger Delta Power Holding Company .”

He further said, “To provide you some background as to how we got here, two important tools that led to the reforms of the sector, the Nigerian Electric Power Policy (2001) and the subsequent Electric Power Sector Reform Act 2005 were products of about five years’ work by sterling experts in the field of electricity and utility reforms. The Act was a necessary foundation for charting a new course for a sector that had delivered far below the most liberal expectations of Nigerians.

“Privatisation of all public generation and distribution companies is one of the pillars of the efforts of the Federal Government of Nigeria  to reform the power sector. The recent privatization of the Power Holding Company of Nigeria successor electricity distribution and generation companies is a testament to the commitment of the FGN to the reform process.” Nebo added

He added that the current privatisation process provided a huge opportunity for international investors seeking for viable investment opportunities that have the benefit of adding great value to the economic well-being of the people of the land.

This golden opportunity, he said, would  dwarf the great economic revolution occasioned by the telecoms industry in Nigeria.

The Chairman, Senate Committee on Privatisation, Senator Gbenga Obadara, said, “We are in the best position to market Nigeria’s products. We will provide security for your investment in Nigeria and we are giving enough assurance of opportunities to investors in the country.

“Investors have been expressing interest in the 10 gas-fired power plants with a combined design capacity in excess of 5,453 megawatts.´

According to him, 53 per cent of the NDPHC plants is owned by states and the local governments, while the Federal Government owns the remaining 47 per cent.” he said.

The Managing Director, NDPHC, Mr. James Olotu, said the 80 per cent of the shares of the 10 power plants in Omotoso in Ondo State (450MW); Sapele in Delta (450MW), Geregu in Kogi (434MW), Olorunsogo in Ogun (750MW) and Ihovbor in Edo (450MW).

Others are Gbarain in Bayelsa (225MW); Alaoji in Abia (450MW); Calabar in Cross River (561MW); Egbema in Imo (338MW) and Omoku in Rivers (225MW), are to be sold to investors.

Also speaking on the occasion, the Director-General, Bureau of Public Enterprises, Mr. Benjamin  Dikki, said  the privatisation of the 10 power plants would be very transparent.