THE Bureau of Public Enterprises has set up a committee to screen the bids of 20 companies that have submitted financial and technical bids for Afam Power PLC and the Kaduna Distribution Company.
Chigbo Anichebe, head, public communications, BPE, said a total of 48 firms had initially expressed interest in the acquisition of majority stake in the two power firms, but 28 failed to submit financial and technical bids by the end of the deadline for them to do so. He explained that nine bids were received for Afam Power, while 11 were received for the Kaduna Distribution Company.
“The technical bids are particularly important for determining who eventually wins the bid for the Kaduna Distribution Company as the federal government has already determined the price at which the company will be sold as it did for 10 other electricity distribution companies. The bidders for Kaduna Disco will be evaluated based on Aggregate Technical, Commercial and Collection loss reduction proposals submitted to the BPE along with the technical proposals. The eventual winner will have to pay 60 per cent of the assets’ worth of the company as determined earlier by the Nigerian Electricity Regulatory Commission. It will pay for only 60 per cent because the federal government is retaining the balance of 40 per cent equity in the company,” he said.
Afam Power Plc and Kaduna Electricity Distribution Plc were among the 17 Power Holding Company of Nigeria’s successor companies that were earlier advertised for sale in December 2010, and both, along with the others, went through a tender process, which culminated in the submission of technical and financial proposals in July 2012.
Moving According to Plan
IN order to ensure steady power supply in Nigeria, the Power Holding Company of Nigeria, PHCN, needs about N77 billion to procure and install electricity meters in the country and address the existing metering gap in the Nigerian electricity supply industry. Chinedu Nebo, minister of power, said Nigeria needs 2.5 to 3 million smart meters and about N77bn is needed to purchase them and bridge the gap. He said that government was working hard to achieve the reforms in the power sector and to make sure Nigerians are pleased with the process.
According to him, the number of smart meters required would continue to grow as gadgets that consumed electricity continued to increase across the country. He further said that N544bn or $3.4bn would be needed to increase power generation, adding that a huge quantum of power was expected from the independent power producers.
The minister further stated that government had been receiving commendations for the transparent process employed in selling the nation’s power generation and distribution companies. “The sale of the six power generation companies and 11 distribution companies was very transparent, and this is because transparency in governance is very critical. We had bidders from all over the world and they were satisfied by the level of transparency in the process,” he said.
Nebo also refuted the claims that the ministry did not have enough funds to offset the severance benefits of the PHCN workers. He stated that the approved sum for the workers benefits was N384 billion and only N45 billion was actually budgeted for that purpose in the 2013 budget. He added that the shortage of the sum would be made up by the federal government from the sale of the PHCN successor companies.
2013 Oil and Gas Summit
AFRICA’S leading oil and gas investors will gather at the Africa Oil and Gas, Finance and Investment Forum 2013, in Dubai, United Arab Emirates on October 22 and 23 for the continental business summit.
Africa Oil & Gas Finance and Investment Forum will include delegations of the highest rank, from Africa’s seventeen petroleum producing countries namely: Algeria, Angola, Benin, Cameroon, Congo, Congo DRC and Cote D’Ivoire. Others are Egypt, Equatorial Guinea, Gabon, Ghana, Libya, Mauritania, Nigeria, South Africa, Sudan and Chad. Also key private sector companies operating in Africa and other distinguished participants from international key energy firms and financial entities will participate.
AOGFI will bring together regional and international financial institutions, multilateral financial agencies, private equity, institutional investors, sovereign wealth funds, national and international oil companies, government and other industry stakeholders to explore effective finance solutions and strategies for unlocking Africa’s oil and gas potential across the value chain, at the same time showcasing major oil and gas investment projects in the region.
Increase in Output of Refineries
DOMESTIC Refining of premium motor spirits in Nigeria has hits over 10.2m litres per day. The Management of the Nigerian National Petroleum Corporation, NNPC, announced on May 2, that the production of premium motor spirits at its three refineries in Kaduna, Warri and Port Harcourt has reached a combined level of 10.23 million per day.
Anthony Ogbuigwe, group executive director, refining and petrochemicals, said the Kaduna refinery operates at 65 percent, while Warri refinery hits 63 percent and Port Harcourt refinery 66 percent of their installed capacities. The refineries also process 5.53 million litres of kerosene daily and 8.016 million litres of diesel daily.
“I can tell you with every sense of responsibility that contrary to the news making the round, all our refineries are doing very well. The major components and various units of Fluid Catalytic Cracking Units, FCCU, Crude Distillation Unit, VDU and Vacuum Distillation Unit, DDU, of all the refineries are working well. In fact, these refineries have been running consistently for over three months,” he said.
Ogbuigwe explained that the stability in supply of petroleum products was attributed to the performance of the refineries, adding that the scheduled turn around maintenance of the refineries was on course to actualise the 445,000 barrels of crude daily allocated to the three refineries by the federal government.
He decried the incessant pipeline vandalism and crude oil theft, stressing that the menace is a threat to the nation’s oil and gas industry. He also called on stakeholders in the industry and Nigerians to team up with the NNPC to find a lasting solution to the menace to enable the refineries to run without shutting.
Compiled by Anayo Ezugwu
— May 13, 2013 @ 01:00 GMT