PHCN: BPE receives $335.8m from preferred bidders

No Comments » November 24th, 2012 posted by // Categories: Energy Development Project


1  Abuja Disco  Kann Consortium Utility Company Ltd


2  Benin Disco  Vigeo Power Consortium


3  Eko Disco  West Power and Gas


4  Enugu Disco  Interstate Electrics Ltd


5  Ibadan Disco  Integrated Energy Distribution and Marketing Ltd


6  Ikeja Disco  NEDC/KEPCO Consortium


7  Jos Disco  Aura Energy Ltd


8  Kano Disco  Sahelian Power Ltd


9  Port Harcourt Disco  4Power Consortium


10  Yola Disco  Integrated Energy Distribution and Marketing Ltd







1  Shiroro Hydro Power Plc  North- South Power Ltd


2  Kainji Hydro Power Plc  Mainstream Energy Solutions


3  Sapele Power Plc  CMEC/EURAFRIC Energy Ltd


4  Geregu Power Plc  Amperion Power Distribution Limited


5  Ughelli Power Plc  Transcorp/Woodrock/Sumbion/Medea/PSL/ Thomassen









GRAND TOTAL (@$1:N165)


PHCN: BPE receives $335.8m from preferred bidders

Posted by: Posted date: November 24, 2012 In: News | comment : 0

In line with the payment mechanism for the privatisation of the Power Holding Company of Nigeria (PHCN) successor generation and distribution companies, the Bureau of Public Enterprises (BPE), yesterday received bank guarantees worth $335,854,986.15 from the preferred bidders for the enterprises.

At its sixth meeting for 2012 which held on October 29, 2012 at the Presidential Villa, Abuja, the National Council on Privatisation (NCP) had approved the payment mechanism for the PHCN successor generation companies (Gencos) and successor distribution companies (Discos). It involves the submission by the preferred bidders of additional bid security in the form of a letter of credit or bank guarantee for fifteen percent (15%) of the transaction value to the BPE.

In a statement, the BPE said the preferred bidders are required within 15 business days of notification from the BPE to submit a “Preferred Bidder’s Bank Guarantee.” The deadline for receipt of the bank guarantee was Friday, November 23, 2012.

The preferred bidders for the Discos submitted bank guarantees worth $188,476,306.00 while the preferred bidders for Gencos submitted bank guarantees worth $147,378,680.15.

The breakdown is as follows:


1) Abuja Disco: Kann Consortium Utility Company Ltd – $24,600,000.00;

2) Benin Disco: Vigeo Power Consortium—$19,350,000.00;

3) Eko Disco: West Power and Gas—$20,250,000.00;

4) Enugu Disco: Interstate Electrics Ltd—$18,900,000.00;

5) Ibadan Disco: Integrated Energy Distribution and Marketing Ltd—$25,350,000.00;

6) Ikeja Disco: NEDC/KEPCO Consortium—$19,650,000.00;

7) Jos Disco: Aura Energy Ltd—$12,300,000.00;

8) Kano Disco: Sahelian Power Ltd—$20,550,000.00;

9) Port Harcourt Disco: 4Power Consortium—$18,636,306.00; and

10) Yola Disco: Integrated Energy Distribution and Marketing Ltd—$8,890,000.00.


1) Shiroro Hydro Power Plc: North-South Power Ltd—$16,748,180.00;

2) Kainji Hydro Power Plc: Mainstream Energy Solutions—$35,680,500;

3) Sapele Power Plc: CMEC/EURAFRIC Energy Ltd—$30,150,000.00;

4) Geregu Power Plc: Amperion Power Distribution Limited—$19,800,000.15;

5) Ughelli Power Plc: Transcorp/Woodrock/Sumbion/Medea/PSL/ Thomassen—$45,000,000.00

It will be recalled that the NCP also approved the next steps for the conclusion of the privatization of the generation and distribution companies.

The next stage is that the designated preferred bidder will be invited for negotiations with the BPE. Within fifteen (15) business days after signing of the Sale and Purchase Agreement, the Shareholders’ Agreement or the Performance Agreement, whichever is earlier, or at a mutually agreed earlier time, the bidder shall make a down payment of twenty-five percent (25%) of the share purchase price.

Within six (6) months after signing of the Sale and Purchase Agreement or the Shareholders’ Agreement, whichever is earlier or mutually agreed upon time, the Bidder will be required to pay the outstanding seventy five per cent (75%) of the share purchase price to complete the transaction. Upon the payment of the 25 per cent of the purchase price, the preferred bidder’s bank guarantee will be returned to the bidder.

After the completion of payment, the handover of the successor company to the Preferred Bidder will conclude the transaction.

Opt In Image
Send Me Free Email Updates

(enter your email address below)

Leave a Reply


Home | About | Contact | Login