From JULIANA TAIWO-OBALONYE, Abuja
History was made in Abuja, the federal capital, yesterday with the formal presentation of share certificates and licences to 14 new investors in the defunct Power Holding Company of Nigeria (PHCN), by President Goodluck Jonathan.
The ceremony which held at the Presidential Villa, however, brought to reality, the long-awaited privatisation of the nation’s power sector. In demonstration of the Federal Government’s commitment to the privatisation process, the President said government would provide additional $750 million grant to the Nigerian Bulk Electricity Trading Company (NBET).
Jonathan said the grant is aimed at positioning the ‘bulk-buyer’ to carry out its post-privatisation mandate without financial constraints. The President expressed the hope that the event would mark a turning point for electricity development in Nigeria, even as he disclosed that Kainji and Shiroro hydropower plants had been concessioned.
He said that the generation companies (GENCOs) owners are inheriting signed gas supply and transportation agreements, adding that government would maintain the agreed gas supply pricing policy in order to encourage new investments in gas supply and infrastructural development.
“The implementation of the gas policy will culminate in a willing buyer, willing seller structure in order to establish a full market- driven environment”.
The electricity generation companies handed over to new owners yesterday include, Geregu, Ughelli, Kainji, Shiroro and Egbin Power plants. Others are: Abuja, Benin, Eko, Ibadan, Ikeja, Jos, Kano, Port Harcourt, Enugu and Yola GENCOs.
Meanwhile, The National Council on Privatisation (NCP) has approved winners of the power distribution companies (DISCOS).They are: Abuja Distribution Company (KANN Consortium Utility Company Ltd), Benin Distribution Company (Vigeo Power Consortium), Eko Distribution Company (West Power & Gas), Enugu Distribution Company: (Interstate Electrics Ltd), Ibadan Distribution Company (Integrated Energy Distribution & Marketing Ltd), Ikeja Distribution Company (New Electricity Distribution Company (NEDC)/KEPCO, Vigeo Power), Jos Distribution Company (Aura Energy Ltd), Kano Distribution Company (Sahelian Power SPV Ltd), Port Harcourt Distribution Company (4Power Consortium) and Yola Distribution Company, won by Integrated Energy Distribution Company.
Government also said that processing of paper works on the Kaduna DISCO and Afam GENCO were nearing completion and would soon be handed over to new owners, Sapele will await the resolution of all the legal issues which has bedevilled the sale of the company.
According to Jonathan, government has carefully worked out measures to address the challenge of the power sector, even as he expressed the hope that with the handing over of the certificates, things could only change for the better.
According to Jonathan, government has carefully worked out measures to address the challenge of the power sector, even as he expressed the hope that with the handing over of the certificates, things could only change for the better.
Jonathan, while reminding the new owners that work is not over yet, said “ We do not expect the sector to be revitalized overnight. But we can all look forward to a better time very soon as we have experienced in the telecommunications and banking sectors.He said: “I congratulate our new owners who have taken over the engines and cables that are expected to drive not just the electricity industry, but also the socio- economic well-being of the nation”
On his part, Minister of Power, Professor Chinedu Nebo said the power ministry has repositioned itself to ensure sustained efforts at ensuring that the current privatization programme is successful.
He said that government would continue to ensure that the best global professional and technical practices are followed, adding “as part of the reform, the Nigerian electricity Supply Industry has been transformed, not a regulated environment”
Speaking on the disengaged power sector workers, Nebo disclosed that of the 47,614 workers identified, government has completed the biometric capture of 45,156, adding that “payment of severance and pension entitlements will continue throughout the month of October.
“I want to assure you that the ministry had positioned itself towards providing effective overall leadership for the sector and facilitating investments with special attention on the development of the national grid, Greenfield IPP, Renewable Energy and Rural dwellers’ access to electrification”.
“I want to assure you that the ministry had positioned itself towards providing effective overall leadership for the sector and facilitating investments with special attention on the development of the national grid, Greenfield IPP, Renewable Energy and Rural dwellers’ access to electrification”.
The NNPC GMD, Andrew Yakubu said, the petroleum industry is the most excited today because “we now have customers to buy our gas”.
Sanni Bello, while responding on behalf of the winners, assured that the new owners would work to ensure stable power for Nigerians.
Sanni Bello, while responding on behalf of the winners, assured that the new owners would work to ensure stable power for Nigerians.
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