Oando, Honeywell to Buy PHCN Distribution Companies – AllAfrica.com

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Oando Consortium and Honeywell Energy Resources are among the 54 companies that have tendered their request to buy the eleven distribution companies from the unbundling of Power Holding Company of Nigeria (PHCN).

The Bureau of Public Enterprises (BPE) said yesterday that the companies met the July 31 deadline for the submission of technical and financial proposals for the privatisation of the eleven distribution companies.

A statement from the spokesman of BPE Chukwumah Nwokoh said other companies that met the deadline include; Skipper Nigeria Ltd; NAHCO Power Consortium; KANN Consortium Utility Company Ltd; Interstate Electrics Ltd; and ENL Consortium Ltd.

Others are Southern Electricity Distribution Company; Cable & Rods Company Nigeria Ltd; Copper Belt Consortium; Rockson Engineering Company Ltd; RENSMART Power Ltd; Duncan Freeman Company/Draytom Energy Ltd; and Vigeo Power Consortium, among others

Nwokoh said prospective core investors, who must be local and/or international power distributors or investors with power distributors as technical partners, would be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government.

The transaction timeline reveals that the evaluation of the technical bids will take place between August 14 and 28. The National Council on Privatisation (NCP) will approve the results of the technical evaluation by September 11.

The deadline for the shortlisted bidders for generation companies to submit their letters of credit is September 18, while October 2 is the deadline for shortlisted bidders for distribution companies.

Consequently, NCP’s approval will pave way for the opening of financial bids of the shortlisted investors.

The BPE will on September 25, open the financial bids of prospective investors for the generating companies while October 10, is the date for the opening of the financial bids for the distribution companies.

The announcement of the preferred bidders for the generating companies is October 9 while October 23 is the date for the announcement of the preferred bidders for the distribution companies.

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.


In : Energy

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