FG explains delay in privatisation of 3 power plants

The Federal Government FG has attributed delay in the privatisation of the three electricity generation companies (Gencos) built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Projects (NIPP) to liquidity in the power sector.

The power plants are Calabar, Geregu and Omotosho.

The Managing Director (MD), Niger Delta Power Holdings Company (NDPHC), Chiedu Ugbo at a media parley with journalists on Wednesday in Abuja, said that the challenges that initially stalled their sales had largely been cleared and were on the way to privatisation.

However, he stated that market liquidity, among other factors has continued to hinder the transaction, adding that this led to phasing of the transaction completion.

He maintained that as against insinuations, preferred bidders are still very much interested in the process stressing that negotiations are ongoing.

According to him: “government is still interested in privatisation and that is why we are using the phasing approach but the liquidity challenge is still there. That is what is causing the delay.

“We are currently negotiating with preferred bidders, nothing is affecting the price.”

The MD, however noted that the payment percentage is yet to be concluded with preferred bidders.

“They have put some proposals on the table on payment term. We are negotiating with them, if we are satisfied we will present it to the joint transaction board of NDPHC and the council of privatisation.

“until we are satisfied we cannot suggest to the Vice President on what to do. No touching, removing or padding of the price,” he said.

Also on the solar homes system, he stated that the first phase of the project includes  installation of 200,000 units of the system.

He said so far, about 15,000 units have been installed in different communities across the country.