General Ibrahim Babangida, Abdulsalami and Tinubu
By Ejiofor Alike and Linda Eroke
Two former heads of state, retired Generals Ibrahim Babangida and
Abdulsalami Abubakar, as well as former Governor of Lagos State and
leader of the Action Congress of Nigeria (ACN), Senator Ahmed Bola
Tinubu, are the promoters of some of the bidding consortiums contesting
for the 18 companies unbundled from the Power Holding Company of Nigeria
(PHCN), THISDAY investigations have revealed.
This is coming as the workers of the ailing power utility giant have
called for the re-evaluation of bids for companies slated for
privatisation.
Also topping the list of promoters is an oil magnate, Sir Emeka Offor;
business mogul, retired Colonel Sani Bello; as well as allies of
Vice-President Namadi Sambo.
North South Power Company Limited, which is believed to be promoted by
Babangida, passed the technical evaluation for the Shiroro Power Station
and would participate in the financial bid stage.
North South Power Company was the only consortium that submitted bids
for Shiroro, while Dangote Power and Super Tech belonging to business
mogul, Aliko Dangote and Professor Jerry Gana, respectively, submitted
late bids and were automatically disqualified.
Integrated Electric Nigeria Limited, promoted by retired General
Abubakar as chairman, Mr. Tunde Ayeni and Dr. Shola Ayandele, is
contesting with other bidders for Eko, Ibadan and Yola Distribution
Companies.
However, the chances of the company’s bids for Eko and Ibadan Discos
are slim due to the presence of Oando Gas and Power, Lagos State
Government, Tinubu and Honeywell in the contest.
THISDAY learnt that Integrated Electric has however passed the
technical evaluation for Yola Disco, which is awaiting the approval of
the National Council on Privatisation (NCP).
For Ibadan Disco, Integrated Electric will compete against Western
Consortium, promoted by Oando Power and Tinubu. Integrated Electric and
Western Consortium are believed to have passed the technical bid stage
for Ibadan Distribution Company, which is awaiting NCP’s approval.
Mainstream Energy Solutions Limited, supported by Bello, passed the
technical evaluation for Kainji Power Station and is set to participate
in the financial bid.
It also submitted a bid for Jebba Power Station but it is not yet clear
if any of the bidders for Jebba was successful, as there was no
announcement made by the NCP on the status of the technical bids
submitted for the hydro power station.
The Oando Consortium, believed to be promoted by Oando Gas and Power,
Lagos State Government and Tinubu, is battling with other bidders for
Eko and Ikeja Distribution Companies.
Also in the race for Eko and Ikeja Discos are: Ampiron Power
Distribution Limitedand Honeywell Consortium, promoted by Mr. Oba
Otudeko.
The Lagos State Government, it was gathered, decided to hedge its bets
by also submitting a bid alongside the Honeywell Consortium, as it is
bent on acquiring a stake in the two Lagos-based distribution assets.
The state government has made it abundantly clear that whoever wins Eko
and Ikeja Discos would have to deal with it owing to its massive
investment in distribution infrastructure and rural electrification
projects over the years.
Meanwhile, Offor’s Interstate Electric Nigeria Limited is slugging it
out with several other bidders, which include Eastern Electric Nigeria
Limited for Enugu Distribution Company.
THISDAY gathered that there are 30 per cent unalloted shares in the
Interstate Electric bid which was submitted to the Bureau of Public
Enterprises, fuelling speculation that the shares may have been reserved
for investors with the financial muscle to enhance Interstate’s bid for
Enugu Disco.
Eastern Electric, on the other hand, is backed by Time Power Global
Dynamics, believed to be sponsored by Ernest Azudialu’s Nestoil; Nifex
Limited; Aba Power and Geometric Power Limited, which belongs to the
former Minister of Power, Prof. Bart Nnaji; and the governments of Abia,
Anambra, Enugu and Ebonyi States.
It is believed that the refusal by the Imo State Government to bid
under any consortium stemmed from Governor Rochas Okorocha’s close
relationship with Offor.
In the case of Port Harcourt Distribution Company, Four Power
Consortium, promoted by the governments of Rivers, Cross River, Akwa
Ibom, Bayelsa States and other private sector bidders, is contesting
against Rockson Engineering, promoted by the owner of Arik Air, Sir
Joseph Arumemi-Johnson.
Southern Electric Distribution Company, which submitted bids for Benin
Distribution Company, indicated that it has the commitment of the
government of Delta State, while Rockson Engineering indicated that it
has a similar commitment from the Edo State Government.
A top member of the NCP is believed to be behind Skipper Nigeria
Limited, which is bidding for Kaduna Distribution Company against NAHCO
Energy and Power Limited.
However, none of these bidders was successful, compelling the BPE to
come up with three fresh options, which it intends to submit to NCP, on
how to handle the failed bids for Kaduna Disco.
The first option is to re-advertise the company to harvest a new batch
of expressions of interest from prospective investors; the second option
is to allow those that submitted late technical and financial bids and
were rejected by the BPE to submit their bids; while the third is to
invite other bidders that lost out at the financial bid stage to submit
fresh bids for Kaduna Disco.
Skipper Nigeria Limited is however believed to have passed the
technical re-evaluation conducted by a new committee set up by the NCP
for Afam Power Station, but is subject to NCP's approval. Skipper had
slugged it out with NPG Consortium and Primeniza Energy Limited.
The reconstituted evaluation team comprised officials from the
Ministries of Works and Power, Infrastructure Regulatory Concession
Commission and Bureau of Public Procurement.
Sahelian Energy, which was pre-qualified for Kano Distribution Company,
is promoted by Alhaji Yusuf, a ministerial nominee of Vice-President
Sambo, who did not pass the security screening.
However, Kepco Consortium, promoted by Sahara Energy, is still in
negotiations with the BPE for the takeover of Egbin Power Station,
subject to NCP and the Federal Government's approval.
State governments such as Lagos, the four South-east and four
South-south states are believed to have joined various consortiums after
they were encouraged by the BPE to submit bids for the distribution
assets.
Under the privatisation programme, the state governments are
automatically entitled to two per cent but can get a maximum of eight
per cent through the bidding consortiums due to their ownership of the
right of way in their states and their massive investment in the
distribution and rural electrification network.
THISDAY gathered that another reason the states were encouraged to
participate in the process stemmed from the difficulty in carving out
the distribution network and delineating boundaries in the immediate
term, but this could happen in the future as the market structure
evolves.
Also, there were concerns that it will be difficult to place a value on
the investment by the states in distribution and rural electrification
infrastructure, thus necessitating that they bid for the distribution
assets through the privatisation process.
Meanwhile, electricity workers under the aegis of the National Union of
Electricity Employees (NUEE) have called for the re-evaluation on the
grounds that Nnaji’s resignation implied that there might have been some
undue influence in the overall management of the privatisation process.
In a letter to Sambo who doubles as the Chairman of NCP, the union also
requested the report of the valuation of PHCN which puts the assets and
liabilities of the corporation at N200 billion.
It stated that the valuation of a company like PHCN should be transparently done with active participation of all stakeholders.
The letter signed by the General Secretary of the union, Comrade Joe
Ajaero, advised that persons who are politically vulnerable should not
be allowed to participate in the privatisation exercise.
“To us it is altruism that the undue influence issue might not have
been restricted to Afam Power Plant and Enugu Electricity Distribution
Zone of PHCN alone, we believe the whole process has been grossly
infested by the menace.
“With all sense of patriotism, we demand also for the report of the
valuation of PHCN assets and liabilities that actually came up with the
current value of PHCN put at N200 billion only.
“The valuation of a company like PHCN should be transparently done with active participation of all stakeholders.
“We believe that this is the only way credibility and transparency
would be seen to have returned to the whole privatisation process. This
will enhance investors’ confidence and those of the international
community,” the union stated.
Source: ThisDay