Integrated Energy Distribution and Marketing Limited, a firm in which the former Head of State, Gen. Abdusalami Abubakar, is the chairman, is in the lead to acquire three of the juiciest electricity distribution companies in the country.
The electricity distribution companies are Eko, Ikeja and Ibadan.
Integrated Energy Distribution and Marketing was prequalified to take control of the companies at the opening of bids submitted by 20 firms jostling for controlling stakes in 10 electricity distribution companies put up for privatisation by the Federal Government on Tuesday in Abuja.
Although frontline bidders for the companies emerged, clear winners of the bids had yet to emerge, as the rules for the bidding employed by the Bureau of Public Enterprises prescribed that the bidders would still be subjected to further tests.
Although some bidders emerged top contenders in a number of companies, one of the rules states that no company can be allowed to win more than two bids.
In addition, no company will be allowed to win both the Ikeja and Eko Electricity Distribution Companies, which collectively generate about 45 per cent of the total revenue of the Power Holding Company of Nigeria.
Based on the rules, the National Council on Privatisation, led by Vice-President Namadi Sambo, will still subject the top contenders to scrutiny before announcing the eventual winners.
The Chairman, Technical Committee, NCP, Mr. Atedo Peterside, said successful bidders were contractually bound to deliver on the Average Technical, Commercial and Collection loss reduction levels they had submitted.
Peterside said, “The bidder offering the highest ATC&C loss reduction is in a leading position subject to the ground rules.
“The regulator will not adjust tariffs upwards to accommodate the inability of a Disco operator to deliver on the ATC&C levels that they commit to; rather tariffs will be adjusted downward annually to reflect the agreed ATC&C loss levels irrespective of the operator’s ability to meet its contractual obligation.”
However, going by the strategy adopted, the Federal Government will realise N197.25bn at the end of the sale of the 10 companies, whose bids were opened on Tuesday.
Instead of allowing the bidders to compete based on their financial strengths, they were evaluated based on ATC&C loss reduction proposals.
The eventual winners will have to pay 60 per cent of the asset worth of the companies as determined earlier by the Nigerian Electricity Regulatory Commission.
A breakdown shows that N25.79bn will be realised from the sale of Abuja Electricity Distribution Company; N20.23bn from the Benin Electricity Distribution Company; N21.19bn from Eko Electricity Distribution Company; and N19.81bn from the Enugu Electricity Distribution Company.
Others are N26.51bn from the Ibadan Electricity Distribution Company; N20.64bn from the Ikeja Electricity Distribution Company; N12.86bn from the Jos Electricity Distribution Company; N21.44bn from the Kano Electricity Distribution Company; N19.51bn from the Port Harcourt Electricity Distribution Company; and N9.31bn from the Yola Electricity Distribution Company.
At the opening of the bids on Tuesday, Interstate Electronics Limited being promoted by business mogul, Mr. Emeka Ofor, emerged the top bidder for the Abuja Electricity Distribution Company by offering to reduce the ATC&C loss by 21.62 per cent.
The second bidder, Kann Consortium Utility Limited, offered to reduce the ATC&C loss by 18.43 per cent.
For the Benin Electricity Distribution Company, Vigeo Power Consortium emerged the top contender with an offer to reduce the ATC&C loss by 21.78 per cent. The company is being promoted by Mr. Gbolade Osibodu.
The other contender for the Benin Disco is Southern Electricity Distribution Company, which offered to reduce the ATC&C loss by 17.72 per cent.
For the Eko Electricity Distribution Company Limited, Integrated Energy Distribution & Marketing Limited emerged the top bidder by offering a loss reduction of 21.43 per cent.
Other bidders for Eko include New Electricity Distribution Company Consortium, 20.43 per cent; West Power & Gas, 18.55 per cent; Honeywell Energy Resources International Limited, 16.33 per cent; SEPCO-Pacific Energy Consortium, 15.7 per cent; and Oando Consortium, 14.29 per cent.
Interstate Electrics Limited emerged the top contender for the Enugu Electricity Distribution Company with an offer of 20.83 per cent ATC&C loss reduction, while Eastern Electric Nigeria Limited offered a reduction rate of 15.99 per cent.
For the Ibadan Disco, Integrated Energy Distribution & Marketing Limited also emerged a top contender with an offer of 17.46 per cent loss reduction. Other contenders are New Electricity Distribution Company Consortium, 17.14 per cent; and Western Consortium 14.37 per cent.
Integrated Energy Distribution & Marketing Limited again emerged top contender for the Ikeja Disco with an offer of 21.51 per cent ATC&C loss reduction. Others bidders were New Electricity Distribution Company Consortium, 20.43 per cent; Vigeo Holdings, Gumco, African Corporation AFC & CESC Consortium, 19.27 per cent; Honeywell Energy Resources International Limited, 16.25 per cent; and Oando Consortium, 14.25 per cent.
The sole bidder for the Jos Electricity Distribution Company, Aura Energy Limited offered 16.22 per cent ATC&C loss reduction; Sahelian Power SPV Limited offered 21.21 per cent for Kano; 4Power Consortium offered 19.55 per cent for Port Harcourt, while Integrated Energy Distribution & Marketing Limited offered 18.58 per cent for Yola.
Punch Nigeria
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