The Nation Newspaper

Tag: BPE

  • Investors to inject $1.8b into Discos, says BPE

    Investors to inject $1.8b into Discos, says BPE

    The Director-General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, has said investors would inject $1.8 billion into the power distribution companies (discos) when private investors take them over.

    Dikki said the investment would cover, among others, metering, new customer connections and network expansion, reduction in number of customer interruptions as well as health, safety and environmental practices.

    A statement by BPE’s Head, Public Communications, Mr. Chigbo Anichebe, quoted Dikki as speaking in Abuja on the development.

    On the implications of the National Integrated Power Project (NIPP) to power transactions, Dikki said the private sector showed a strong will to participate in the generation and distribution sectors of the electricity industry.

    The BPE chief explained why the Federal Government decided to engage a Management Contractor for the Transmission Company of Nigeria (TCN).

    The statement noted that in a presentation, titled: The Status of PHCN Transaction and Implications for the NIPP, Dikki said there is need to place TCN on the path of best practice, reliability and self-sustenance.

    He said this would ensure predictability and security of the transmission system, which informed government’s decision.

    The BPE chief predicated the decision on the belief that the management contractor would bring in invaluable experience for the sector’s development, provide clear targets and incentives, build capacity of TCN workers to prepare them for future roles, among others.

  • Interstate Electrics completes payment for Enugu Disco

    Interstate Electrics completes payment for Enugu Disco

    Interstate Electrics (IE) which won the bid for Enugu Electricity Distribution Plc has completed the payment for the electricity firm.

    The payment is coming some days after it took advantage of the available window of opportunity for the completion of outstanding balance as recently spelt out in the Share Purchase Agreement (SPA) for the acquisition of the enterprise.

    Interstate Electrics which is floated by multi-billionaire businessman, Sir Emeka Offor, had recently assured the Bureau of Public Enterprises (BPE) that the payment processes will be completed before this weekend.

    A source at the BPE who refused to be named said that a total of $94,505,000.00(about N148,372,85,000.00), has been credited into the privatisation agency’s account, thereby enabling the company to prepare for IEs takeover.

    The consortium which is made up of Chrome Consortium Energy Nigeria Limited, Powerhouse International Limited, Metropolitan Electricity Authority, also parades a team of electricity infrastructure engineers, owners/operators of electricity power distribution companies, upstream and downstream oil operators and empowerment partners, has a collective global experience of over 80 years.

    It was incorporated as a vehicle for the purpose of acquiring and operating Electricity Distribution Companies in Nigeria and it emerged as the preferred bidder for the Enugu DISCO after a bidding process for the sale of PHCN in 2012, with an Aggregate Technical, Commercial and Collection (ATC & C) loss reduction proposal of 20.83%.

    The consortium’s technical partner was identified as Metropolitan Electricity Authority of Thailand (MEA) with over 50 years experience. It is responsible for the distribution and sales of electricity to users in Bangkok and metropolitan vicinities, including Nonthaburi and Samutprakarn provinces.

    MEA’s distribution area covers 3,195 square kilometers divided into 14 districts with a population of about eight million and energy sales of 44,714 GWH of electricity.

  • BPE generates N251.5b from 122 privatised firms

    BPE generates N251.5b from 122 privatised firms

    The Bureau of Public Enterprises (BPE) generated N251.5billion from 122 privatised firms handled from 1999 -2012, the Director-General, Benjamin Ezra Dikki, has disclosed.

    Dikki, who spoke while receiving a team from the Standard & Poors’ and Fitch Rating Agencies on a visit to the Bureau on Wednesday, said out of the amount, N147billion was remitted to the Privatisation Proceeds Account with the Central Bank of Nigeria (CBN).

    He told the team led by Richard Fox that was at the Bureau in continuation of this year’s Nigeria Sovereign Rating exercise, that out of the privatised enterprises, 66 per cent were doing well, while 34 per cent have issues to be sorted out.

    The BPE helmsman maintained that the government is creating an enabling environment for private sector investments in infrastructure through the institution of sound policies, liberalisation and delineation of the roles of the parties, appropriate legal and regulatory framework, mitigation of risks and introduction of independent economic regulators limiting government to policy formulation, planning and technical regulation, among others.

    He said the BPE has championed cross-cutting reforms in the nation’s economy, including; the Pension Reform Act 2004 which led to the establishment of the National Pension Commission, and the entrenchment of a stable pension policy in Nigeria, as well as the emergence of several Pension Fund Administrators (PFAs); Cross debt resolution, leading to the establishment of Debt Management Office (DMO) and Ports and Harbour Authorities Bill which proposes to repeal the Nigerian Ports Authority Act No. 38, 1999.

    Dikki, whose presentation was contained in a statement by BPE spokesman, Chigbo Anichebe, was represented by the Head, Strategic Planning, Osauzo Obaro.

    He said the Bureau is working to commercialise the country’s 12 River Basin Development Authorities (RBDAs), the seven national parks, the three Development Finance Institutions (DFIs)-Bank of Industry (BOI), Bank of Agriculture (BOI), the Federal Mortgage Bank of Nigeria (FNBN), as well as the Federal Housing Authority.

  • BPE rules out improved electricity supply for now

    BPE rules out improved electricity supply for now

    Nigerians should not expect improved power supply any time soon, the Director-General, Bureau of Public Enterprises (BPE), Benjamin Ezra Dikki, has said.

    Dikki, who spoke yesterday at a Breakfast Meeting of the Lagos Business School, said although the successor companies of the Power Holding Company of Nigeria (PHCN) would be handed over to their new owners as from October 1, the development would not bring about immediate changes.

    While appealing to Nigerians for understanding, he said investments in the sector would take time to achieve results and that construction of new generation capacity would take two-five years to achieve most of the results envisaged.

    He however stressed that with the power sector in private hands, Nigeria would benefit from increased power supply and a boost in agricultural and industrial development among other positive developments.

    He called for strong incentives and support from the government to encourage further private sector investments in gas to boost power supply in the country.

    In a statement yesterday by BPE Head of Public Communications, Chigbo Anichebe, Dikki explained that the bulk of electricity generated in the country was through gas-fired plants, but regretted that at present, the country does not have the capacity to supply enough gas to support the envisaged increased capacity now that the private sector is about to take over power generation and distribution in the country.

    In a paper, entitled: ‘Power Privatisation: Objectives, Current Status, Prospects & Challenges, Dikki who was represented by the Acting Director, Electric Power, Ibrahim Babagana, said Nigeria was blessed with the largest reserves of natural gas in the world, but stressed that necessary investments were needed to access the gas to produce power.

    He noted that there was paucity of skilled manpower in the sector, saying the inheritance of an aged and unmotivated work force and the absence of a clear strategy by the new owners to manage the movement from state-run to privately managed entity, could pose a challenge.

    He said at the onset of the democratically elected government in 1999, the Nigerian Electricity Power Sector had reached the lowest point in the history of the country, explaining that “ of the 79 generation units in the country, only 19 were operational, while average daily generation was 1,750 megawatts.

    He said no new electric power infrastructure was built between 1990-1999, the newest plant was completed in 1990 and the last transmission line was built in 1987, adding that an estimated 90 million people were without access to grid electricity and accurate and reliable estimates of industry losses were unavailable, but these were believed to be in excess of 50 per cent”, he said.

  • BPE, NERC discuss business plans of core investors

    BPE, NERC discuss business plans of core investors

    The Nigerian Electricity Regulatory Commission (NERC) has met with a team from the Bureau of Public Enterprises (BPE), to, among other things, discuss the business plans of core investors of privatised power firms.

    It was called to establish modalities for a seamless handover of the privatised electricity companies’

    According to a statement by the NERC Assistant General Manager, Media, Maryam Yaya Abubakar, yesterday, he said the issues tabled at the meeting included the application of the Fit and Proper Guidelines, business plans of the core investors, framework for monitoring and enforcement of transaction agreements, and the formalisation of contracts pertaining to transmission, power purchase agreements, vetting contracts and gas supply agreements.”

    He said the BPE Director -General, expressed his satisfaction at the level of responsiveness displayed by NERC when ever issues were raised in the past, adding that the BPE had enjoyed a good working relationship with NERC.

    Chairman, NERC, Dr. Sam Amadi, while congratulating Dikki on his confirmation as Director-General of the BPE, stressed the importance of preparing grounds for a successful takeover. He maintained that NERC will on its own part heighten its already laid down procedures for monitoring and enforcement.

    He the priority of the Commission remains customer metering, without which the industry cannot stand, adding that owners of the new distribution companies will be required to adopt the existing metering scheme put in place by the Commission or provide a better alternative.

    A further meeting has been scheduled for next week to review the fit and proper guidelines as well as to arrive at the mechanism for dealing with liabilities incurred, post-handover.

  • NCP, BPE at the crossroads

    NCP, BPE at the crossroads

    The relationship between the Technical Committee of the National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) may have gone awry as BPE is alleged to have refused to approve the meeting of the committee to discuss issues on the latest transactions in the power sector, including the inability of some preferred bidders to pay the balance of 75 per cent value of the assets they bought.

    The Nation gathered that the Chairman of the committee, Atedo Peterside in a letter explaining to members why the committee has not held meeting for so long, said the Director-General of BPE , Benjamin Dikki, allegedly doesn’t want the meeting to hold by not giving his approval.

    The letter allegedly signed by Peterside titled “Re: Update on PHCN Privatisation – Inability to convene a meeting of the Technical Committee of the National Council on Privatisation,” the BPE is keeping the committee in the dark on latest issues on privatisation of power assets

    The letter written to members of the committee, said: “Many of you contacted me recently to enquire why a Technical Committee meeting has not been called to consider and deliberate upon updates on the PHCN Privatisation.

    “My understanding has always been that it is the chairman of a committee that decides when it is appropriate to call a meeting, having considered possible agenda items and the need to dispense with them promptly with a view to achieving the broader objectives/mission of that committee.

    “The reason we are unable to meet is because the DG of BPE, who controls the BPE’s budget and therefore releases funds to pay for hotel bills and sitting allowances, has “surreptitiously” vetoed all my efforts to convene a meeting of our Technical Committee of recent.

  • BPE, power investors brainstorm on entrance to capital market

    BPE, power investors brainstorm on entrance to capital market

    • Govt briefs PHCN investors

    The Bureau of Public Enterprises ( BPE) and the new owners of the Power Holding Company of Nigeria (PHCN) yesterday brainstormed on how to raise long term capital from the capital market into the sector.

    A source, who spoke to The Nation in confidence, said the meeting discussed how the investors can raise long-term funds from the market for the sector.

    He noted that the meeting was part of the preparation for a smooth handover of the plants to their buyers in order to reduce liabilities to the barest minimum.

    BPE’s Director-General, Benjamin Dikki presided over the meeting that was held at the Transcorp Hilton, Abuja.

    The Nation gathered that the meeting was interactive with the stakeholders in the power sector.

    Those who attended included the Managing Director, Nigeria Electricity Bulk Trade , the Director-General, Security and Exchange Commission (SEC), Ms. Aruma Oteh and the Managing Director, Nigeria Electricity Liability Management Company (NELCOM), and others.

    Dikki gave an update on the payment of severance package to the PHCN employees to the investors.

    It was also learnt that the modality on how to engage labour under the new dispensation was a major issue at the meeting.

    The source added that the meeting deliberated on the new workforce of the PHCN, and and the possibility of retaining some.

    The Nation yesterday reported that the BPE and the new owners of the power entities were to meet.

  • 20,304 PHCN workers receive N119b severance benefits

    20,304 PHCN workers receive N119b severance benefits

    • As payments from 14 bidders hit $559m

    No fewer than 20,304 of the 40,000 Power Holding Company of Nigeria (PHCN) workers have been paid N119,176,731,492.88, it was learnt yesterday.

    The office of the Accountant General of the Federation facilitated the payment.

    According to the BPE, Head of Public Communications, Mr. Chigbo Anichebe, in a statement yesterday, the payment began on August 1.

    The statement said that the National Council on Privatisation (NCP) and its implementation arm, the BPE reassured Nigerians that the power sector reform was on course.

    It recalled that all the preferred bidders for the 15 Power Holding Company of Nigeria (PHCN) successor companies have earlier met the deadline for the payment of the mandatory 25 percent of the offer value of their bids as at the deadline date of March 21, 2013. The Bureau received $559,445,573.96 from 14 bidders for 15 successor companies.

    The deadline for payment of the remaining 75% remains Wednesday, 21 August 2013 as stipulated in the Request for Proposal (RFP). In compliance with the tenets of transparency and accountability, the Bureau will continue to strictly abide by the terms and conditions in the RFP.

  • RUSAL, BPE deny alleged vandalisation at ALSCON

    The management of the Aluminum Smelter Company of Nigeria (ALSCON) has denied stripping the company of its assets.

    Reacting to claims by union members of ALSCON that RUSAL, the managers of the company, were stripping the company of the Bussbar/ Riser, stem rods and anode to sell to waiting buyers,

    Tatyana Smirnova of RUSAL described the information as “misleading and does not correspond to reality.”

    She said: “ALSCON is cleaning its territory from unrealisable assets, obsolete and not-suitable-for-use equipment, which cannot be utilised for production of aluminum.”

    She added: “The acquired equipment is the property of RUSAL and makes a part of modernisation programme that was implemented from 2007 till 2012.”

    RUSAL, she explained, has put around $159.4 million of its own investments into the plant.

    Also reacting to the union members’ claims, spokesman for the Bureau of Public Enterprises (BPE), Joe Chigbo Anichebe, said there were not true.

    He said the BPE heard the rumour a few weeks ago and discovered it was untrue after investigations.

     

  • BPE to hand over distribution firms to investors soon

    The Bureau of Enterprises (BPE) will soon hand over the distribution companies to core investors that met the capital requirement.

    The companies include: Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc and Eko Electricity Distribution Company Plc.

    Others are: Enugu Electricity Distribution Company Plc, Ibadan Electricity Distribution Company Plc, Ikeja Electricity Distribution Company Plc, Jos Electricity Distribution Company Plc, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company Plc.

    Speaking to The Nation, thhe Head of Media, Ministry of Power, Mr Timothy Oyedeji, said the payment of the 100 per cent capital requirement by the bidders was mandatory to ensure the successful privatisation of the power sector.

    The government, he said, was waiting for the successful bidding distribution and power generation firms to meet the 100 per cent capital regime.

    He said: ‘’Though the companies have paid 25 per cent of the capaital outlay, they are required to pay the remaining 75 per cent in line with the directives of BPE. When they pay the outstanding, the companies would be handed over to the bidders in the next couple of months.’’

    The BPE had announced the receipt of $335 million from the bidders for the generation and distribution firms last November.This followed a due dilligence process conducted on the distibution and generation power firms.

    The process included clearing the preffered bidders for the Power Holding Company of Nigeria (PHCN) generation and distribution firms, ensuring that they have the capacity to do the job.

    Others are decision of the government to reach an aggreement with the Nigerian Labour Congress (NLC) to guarantee the cooperation of workers in the handing over process, and raising finance to pay the entitlements of the workers exiting PHCN.