FG orders AGF to settle ex-PHCN staff this week

Federal Government has ordered the Accountant General of the Federation to settle all outstanding claims of former staffers of the Power Holding Company of Nigeria (PHCN), as it approved the payment of 75 per cent of Interstate Electrics Limited for Enugu Distribution Company Plc.

The approval of Interstate payment has thus finally put to rest, the controversy of Interstate’s technical and financial incapability to manage the Enugu Distribution Company Plc.

The government also approved the North South Power’s payment of 75 per cent remaining payment for Shiroro Power Plc and other 12 companies, for the acquisition of the 15 distribution companies Power Holding Company of Nigeria.

In a statement, Head, Public Communications, Mr Chigbo Anichabe, said that the National Council on Privatisation (NCP) approved the late payments by North South Power and Interstate Electric Limited for Shiroro Power Plc and Enugu Distribution Company Plc respectively, subject to the late payment penalty as provided in clause 12.20 on interest for late payment and clauses 5.5, 5.5.1 and 5.5.2 of the SPA.

In the case of CMEC/EURAFIC consortium, the preferred bidder for Sapele Generation Company, who had paid $119,887,156 of the $201,000,000 bid, NCP referred its case to the Office of the Attorney General of the Federation and Minister of Justice for advice, adding that legal issues were identified that needed to be resolved.

To avoid any labour-related hitch during handover in October, NCP also directed the Office of the Accountant General of the Federation to ensure that all staff entitlements are fully paid by the week beginning September 23 and ending September 27, 2013.

Similarly, NCP equally approved the protocol for the physical handover of the successor companies to the bidders that have fully paid the remaining 75 per cent for the acquisition cost.

It is recalled that in December 2010, the NCP advertised for Expressions of Interest (EOIs) from prospective core investors interested in acquiring controlling stake in the 11 successor distribution companies (Discos) created out of the Power Holding Company of Nigeria. By March 4, 2011, the deadline for submission of EOIs, 180 applications were received for the 11 Discos.

Following the evaluation of the applications, 80 bidders were shortlisted. At the deadline for the payment of the data room access fee, 72 out of the 80 shortlisted bidders each paid the mandatory $20, 000 fees to purchase the Request for Proposals (RFP), have access to the data room and proceed to the next stage of the transaction.

All the prequalified bidders were given access to the virtual data room from September 1, 2011 to the proposal submission date of July 31, 2012. Pre-qualified bidders were also allowed to visit the distribution companies and physical data rooms that were located within the franchise area of each distribution company.

By the bid submission deadline of 5pm on July 31, 2012, the Bureau of Public Enterprises (BPE) received 54 proposals from pre-qualified bidders.

The received bids were opened and sorted out on August 1, 2012. All the 54 bids were confirmed to be complete in terms of having both commercial and technical proposals.

Out of the 54 bids, 10 of them failed the first test of completeness and responsiveness. The remaining 44 bids were then subjected to full technical evaluation. Out of the 44 bids, 32 bids submitted by 20 different bidders scored the minimum of 75 per cent that was required to progress to the next stage in the process.

The final approval of the preferred bidders by NCP and its announcement for the successor companies was done on October 23, 2012 for the Discos.

The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.

The final approval of the preferred bidders by NCP and its announcement for the successor companies was done on October 23, 2012.

The Nigerian electricity industry has been unbundled into generation and distribution companies and a single transmission company with a view to encouraging private sector participation and attracting foreign and local investment into the Nigerian power sector to ensure economic and reliable electricity supply.

The federal government is expected to generate $2.6bn from the sale of the power assets.

After the initial 25 per cent payment by all the preferred bidders, the remaining 75 per cent payment was expected to be paid on August 23, this year. But Interstate Electrics and North South Power could not meet the initial deadline. But before the expiration of 20 days window, the firms were able to pay.

Top government functionaries were divided over the possible extension of the deadline for the preferred bidder for the Enugu Electricity Distribution Company, Interstate Electrics Limited, to pay the balance of 75 per cent of the bid sum.

Interstate Electrics, owned by a business mogul, Mr Emeka Offor, had emerged the preferred bidder for Enugu Disco in February.

However, the company failed to meet the August 21 deadline for the payment of the balance of 75 per cent or $93.24m.

Since the deadline ended, the Bureau of Public Enterprises has not been able to invite the reserve bidder, Eastern Electric, promoted by a former minister of Power, Professor Bath Nnaji.

However, the extension of time, pitched the Chairman, Technical Committee, National Council on Privatisation, Mr Atedo Peterside, against the Director-General, BPE, Mr Benjamin Dikki.

While Peterside was leading those that insist that it is wrong to grant Interstate an extension, Dikki is reportedly canvassing for an extension of the payment time.
In a meeting of NCP, it was reported that 10 out of 11 members voted for the cancellation of the bid. The decision of the meeting was further sent to the meeting of BPE and NCP which ended on Friday.

Posted By Silver.

TO MAKE MORE CASH ONLINE! CLICK HERE

Contact Msmediacreation.

BB: 238003B5
Email:msmediacreation@gmail.com

Advertisements
This entry was posted in news and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s