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Tag: BPE

  • BPE, NCP caution against halting power privatisation

    BPE, NCP caution against halting power privatisation

    The Bureau for Public Enterprises (BPE) and the  the National Council on Privatisation (NCP) have asked a Federal High Court in Abuja not to halt its privatisation process in relation to three power plants.

    Their request is a response to an application by a firm, Ethiope Energy Limited asking an order of interlocutory injunction to stop them from concluding the process of selling  Alaoji, Omoku and Gbarain power stations.

    Ethiope, which is challenging the process of the sale of the plants, had sought to restrain BPE and NCP from taking any steps to implement the bidding exercise in respect of the privatisation of the three National Integrated Power Plants (NIPPs).

    The Niger Delta Power Holding Company Limited which was also joined as a party equally opposed Ethiope’s application to halt process.

    Yesterday, Ethiope’s lawyer, Alex Izinyon (SAN) urged the court to issue an interlocutory injunction, on the ground that his client has met the conditions for the bids and that it was wrong to exclude it from the next round of bidding.

    Lawyer to BPE and  NCP, Prof. Taiwo Osipitan (SAN) opposed the application and argued that Ethiope lacked the necessary legal right to compel the court to exercise its discretion in its favour.

    He said an application for interlocutory injunction should establish the applicant’s legal right.

    Osipitan argued that Ethiope wrongly based its claim on commercial bids whereas what was in issue was financial bids.

    He argued that the document which the company relied on in filing the case made reference only to financial bids. He added that, having come under the wrong heading, the application for injunction should fail.

    Lawyer to the the Niger Delta Power Holding Company Limited, Fabian Ajogu (SAN) urged the court to refuse the request that it grants injunction to stop an action where damages would be an adequate compensation.

    He said monetary compensation would be enough to take care of the plaintiff’s loss if at the end it lost anything.

    Trial judge, Justice Abdu Kafarati adjourned the case to October 7 for ruling.

  • BPE to consumers: pay your bills

    BPE to consumers: pay your bills

    The Director-General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Ezra Dikki, has urged electricity consumers to always settle their bills promptly to enable the new power companies provide efficient and constant power supply.

    Dikki spoke in Enugu when a team from the bureau visited the Enugu Electricity Distribution Company (EEDC) as part of its post-privatisation monitoring activities of the newly privatised PHCN successor companies.

    In a statement yesterday in Abuja, BPE’s Head of Public Communications, Mr. Chigbo Anichebe, said Dikki was represented by the Acting Director of the National Facilities and Agricultural Resources (NF&AR), Dr. Vincent Akpotaire.

  • BPE seeks buyers for NITEL

    BPE seeks buyers for NITEL

    A gain, Nigeria is looking for buyers for the assets of the moribund former state-run telco, the Nigeria Telecommunications Limited (NITEL) and its mobile arm, MTel.

    The National Council on Privatisation (NCP) appointed, liquidator-the Bureau of Public Enterprises (BPE)  said it will adopt what it described as “guided liquidation” to minimise the losses that will occasion its sales.

    Its Director-General, Benjamin Dikki told The Nation that the agency is avoiding selling the asets of the former national carrier as scraps.

    The BPE placed  an advert announcing its intention to sell the telco and inviting fresh bidders that must possess five years of cognate telecom experience and a net worth of at least $200 million.

    Business activities of NITEL and MTel were rounded off in March after several failed attempts to get it sold to investors.

    Nigeria’s mobile subscriber base is about 130 million while teledensity is over 90 per cent.

    It said bids must be submitted by June 30, adding that the assets while the preferred bid will be handed over the assets by December this year.

    Dikki said:  “Why should we put government to revive NITEL when NITEL is no longer a critical infrastructure in the Nigerian economy. If NITEL doesn’t come up again at all, Nigerians will still survive in terms of access to telecommunications. So, NITEL has ceased to be a critical asset. Government then looked at all the options. What are the benefits of putting money? The option of Private Public Partnership (PPP) and other options in resuscitating NITEL but all of them have investment implications for the government. Telecom is not a priority area for government now. It is better taken care of by the private sector. We should focus on other areas that are critical-bad roads, we need to improve our health, we need to improve our education. So government decided how do we even minimise our obligations to get that $1 million.

    “That is why we now decided to take advantage of the Company and Allied Matters Act. What the Americans call chapter 11. You go and file for the liquidation of Nitel, and we did not want it to be liquidation, the typical liquidation style, where you sell one building, one cable to different parties. We call it guided liquidation because we want whoever buys Nitel and MTel to still continue to run the telecom and not to extinguish Nitel from business.”

    NITEL owes creditors – mostly suppliers – around N400 billion with creditors taking a loss if the proceeds from the sale are not enough to repay all the debt.

  • BPE:banks not threatened by N1tr loans to power sector

    The Bureau of Public Enterprises (BPE) has dismissed fears of collapse of commercial banks over loans to the power sector.

    It said the sector was not facing a  cash crunch, noting that the firms  did not use their assets as collaterals.

    At a meeting with owners of the privatised power assets and the Africa Energy Team of the World Bank, in Abuja, the Director-General of BPE, Mr. Benjamin Dikki, described the fears as unfounded.

    In a statement, BPE’s Head, Public Communications, Chigbo Anichebe, said the fears of  takeover of the successor companies (SCs) because of the purported non-servicing of loans, or about the prospect of stress to the banks due to their exposure to SCs, are misplaced since the SCs did not borrow directly from the banks.  No assets of the SCs were pledged as collateral, he added.

    Dikki said: “It should be noted that it was the acquiring companies or special purpose vehicles (SPVs) that borrowed based on their cash flows and accounts. The agreements signed also requires that the consent of the BPE is obtained before the core investors can borrow.

    “The banks lent to the core investors based on their capability to pay. The investors are supposed to have made adequate provisions to take care of their obligations to their financiers from the outset.  They knew that they were not going to make profit immediately on takeover of the SCs. Their financiers also were aware of this.”

    The Head of Africa Energy Team of the World Bank, Mr. Pedro Antmann, reminded the investors that their primary focus should be to provide adequate and efficient power supply to consumers.

    He said there were challenges at the initial stages of privatisation, noting that with determination and the right strategy, they would be surmounted. He urged them not to aim at making profit now but to develop infrastructure and to meet the cost of supply.

    Antmann advised the Nigerian Electricity Regulatory Commission (NERC) to make a provision in its rules to adjust tariffs in times of low generation.

    He urged the investors not to focus on short-term gains, but invest in infrastructure that will guarantee sustained future profits.

  • Group faults NCP, BPE on power privatisation

    Group faults NCP, BPE on power privatisation

    The National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) claims that they carried out financial and technical due diligence on new power investors may not be true.

    The General Secretary, Senior Staff Association of Electricity Workers and Allied Companies (SSAEAC), Abiodun Ogunsegha, said the claims were misleading, in view of the financial and technical problems the 15 power generation companies (GENCOs) and  distribution companies (DISCOs) were experiencing.

    He said: “Had it been that NPC and BPE conducted a thorough financial and technical due diligence on the investors, they would know that many investors are not financially prepared for the electricity business. Many are struggling to pay back the banks the money they borrowed to purchase the assets of Power Holding Company of Nigeria (PHCN).  Some of the distribution firms cannot provide money for imprest because they could not generate enough revenue.

    “Many investors are technically deficient. They do not have deep knowledge of operations of the sector. They were not properly advised on  the technical partners needed for growth. They thought they would recoup their money within the three months. However, events and circumstances have proved them wrong.’’

    Ogunsegha said the sector is suffering because the investors were not ready to commit additional funds.  He said it is illogical for investors to use money realised from other business to finance the loans, adding that the sector would continue to suffer.

    According to him, the pre- and post-privatisation mistakes committed by the BPE and NCP have culminated in the problems facing the sector. He said consumers are protesting because they could not get regular power, arguing protests would not stop until there is improvement in electricity supply.

    However, BPE’s Spokesman, Joe Anichebe said the allegations that proper due diligence was not carry out on the bidders was not true. He said the bodies consulted on wide range of issues before taking decisions, noting that they spent months in examining the bidders’ proposals.

    He said no privatisation programme succeeds without sound due diligence, adding that BPE considered many factors before starting the exercise.

  • Ministry, BPE to revive steel rolling mills

    The Ministry of Mines and Steel Development on Monday said it was partnering with the Bureau for Public Enterprises (BPE) to revive the Delta Steel Company and other steel rolling mills.

    The Director, Steel and Non-Ferrous Metals Department in the ministry, Mr. Also Abdullahi, made this known in a chat with the News Agency of Nigeria (NAN) in Abuja.

     

    Abdullahi said it was necessary to revamp the companies, including the steel rolling mills in Jos and Osogbo, to boost steel production and create jobs.

    He said the ministry and BPE were discussing with owners of the mills to address issues delaying commencement of operations nine years after they acquired the companies.

    He disclosed that the Federal Government sold 80 per cent of its equity in Delta steel to Global Infrastructure Nigeria Limited, which initially pledged to bring in foreign investments.

    According to him, Global Infrastructure, an Indian company, instead, took a loan of over N30 billion from some Nigerian banks which it is unable to repay.

    The director said the banks had since “sold the loans to Assets Management Company of Nigeria (AMCON) and that enabled AMCON to take over Delta steel company.”

    He said the ministry, BPE and AMCON had been discussing with new investors who had indicated interest to acquire the company.

    On Jos Steel Rolling Mill, now Zuma Steel, Abdullahi said it was bought by a consortium of Nigerian and Ukrainian companies, but had been bogged down by disagreements and litigation.

     

     

  • N370bn has been paid to PHCN workers, says BPE

    The Bureau of Public Enterprises (BPE) said a total of N370 billion had so far been remitted for the payment of former employees of the defunct Power Holding Company of Nigeria (PHCN).

    This is contained in a statement made available to the newsmen and signed by the Head, Public Communications of the Bureau, Mr Chigbo Anichebe, on Monday in Abuja.

    NAN report quoted the statement as saying that the committee on the settlement of labour liabilities in the power sector chaired by the Permanent Secretary, Federal Ministry of Power, Dr Godknows Igali, made the payments through the Office of the Account General of the Federation (OAGF).

    “The Director-General of the BPE, Mr Benjamin Dikki, has stated that 45,136 staff out of 47,913 staff have been verified to date for payment.

    “A total of N370 billion has been remitted to the OAGF for payment of the former employees of the defunct PHCN.

    “Also after the bureau’s nationwide field verification of the possible 4,194 PHCN retirees, 2,931 or their next of kin have been verified leaving 1,163 yet to be verified.

    “The verification exercise is the bureau’s way of making extra effort to ensure that the outstanding pensioners were verified and paid their entitlements expeditiously,’’ it said.

    According to the statement, the pensioners or their next of kin, who had not been verified, are advised to do so before April 2.

    The commitment of the Federal Government to resolving labour issues in the power sector was reiterated in the statement.

    “President Goodluck Jonathan made it a priority and demonstrated great commitment in resolving labour issues in the power sector committing the entire proceeds realised from the sale of power assets for the payment of the workers’ terminal benefits.

    “Government had at the initial stage of the transaction, released N57 billion to take care of the workers’ pension.

    “This was coming after the government had increased the workers’ salary by 50 per cent and regularised all casual staff of the defunct PHCN.

    “Government had also released over N6 billion to the union leadership as check-off dues from the staff entitlements,’’ it stated.

  • BPE attributes power sector unbundling success to FG’s commitment

    BPE attributes power sector unbundling success to FG’s commitment

    Mr Benjamin Dikki, the Director-General, Bureau for Public Enterprise (BPE), has attributed the agency’s success in the unbundling of the power sector to the removed all inhibitions by the Federal Government.

    In a statement at the weekend in Abuja, Dikki said that the roles of President Goodluck Jonathan and Vice President Namadi Sambo greatly accounted for the success of the power sector transactions.

    The statement by BPE Head of Public Communication, Mr Chigbo Anichebe, said the director general spoke while receiving “2013 Man of the Year Award” in Abuja.

    Dikki recalled that during the signing of the industry’s documents for the transactions, some of the critical stakeholders were foot-dragging until the President gave marching order to them to expediently play their roles.

    He said that Jonathan’s courage and confidence in the unbundling of the power sector aided BPE to pull through with issues associated with the power transactions.

    He dedicated the award to the President for “his focus, determination and meticulous follow-throughs which saw to the success of the power sector transaction”.

  • Privatisation: Court restrains BPE from sale of power stations

    Privatisation: Court restrains BPE from sale of power stations

    A Federal High Court in Abuja yesterday restrained the Bureau of Public Enterprises (BPE) from further proceeding with privatising three major power stations.

    They are Aloaji, Omoku and Gbarain power stations. The BPE had slated the bidding process for the stations’ sale on March 7, 2014.

    Justice Abdulkadir Abdulkafarati’s order followed an application by lawyer to a firm, Ethiope Energy Limited, Alex Iziyon (SAN).

    Iziyon, representing the plaintiff – Ethiope Energy – urged the court to stop the BPE from going ahead with the bidding, pending the hearing and determination of the suit.

    He argued that despite being put on notice about the pendency of the suit, the defendants had proceeded with the bidding.

    “Despite being put on notice, they went ahead to take initial step to overreach the motion on notice. They said that there was no court order stopping them from going on with the bidding process.

    “They had ample time to brief a lawyer concerning the case, but they failed to do so because we served them on March 6, 2014, the last time the case came up. Till date, no process has been filed by them in this case.

    “The court can make an interim order stopping them from taking further step in the exercise because the case cannot be in court and the defendant will continue to take further steps that will destroy the res of this case,” Iziyon said.

    Responding, BPE’s lawyer, A.M. Kayode, who said he held the brief of Professor Taiwo Osinpitan (SAN), prayed the court to order an accelerated hearing as against an order of injunction.

    “I urge the court to order an accelerated hearing in this case. I do not have instruction from my principal to give undertaken. We are not aware that any step has been taken so far in this matter,” Kayode said.

    Ruling, Justice Kafarati upheld Iziyon’s argument and held: “It is apparent that the defendants have been served with the motion on notice and they fail to brief their counsel. An order of interim injunction is hereby granted against the 1st defendant from further going on with the bidding process of the power stations.”

    The case has been adjourned till March 25.

    Ethiope Energy is, by the suit, challenging its alleged exclusion from the bidding by the BPE.

    In its statement of claim, Ethiope Energy accused the Chairman of the Due Diligence Committee, Atedo Peterside, of having “enormous influence on the BPE.”

    Ethiope also accused the BPE of allegedly manipulating the technical bid evaluation due diligence.

    Sued with BPE are Niger Delta Power Holding Company Limited and the Attorney-General of the Federation.

     

  • Power plants: Bid winners to emerge this month

    The Bureau of Public Enterprises (BPE) will this month announce winners of the bids for the power plants built under the National Integrated Power Project (NIPP) by the Niger Delta Power Holding Company (NDPHC).

    The 10 medium power plants, which were built to add at least 5,000 megawatts (Mw) to the national grid, are Alaoji Power Station in Abia State; Calabar Power Station, Cross River State; Egbema Power Station, Imo State; Geregu Power Station in Kogi State; Ihovbor Power Station in Edo State; and Olorunsogo Power Station, Ogun State.

    Others are Omoku Power Station in Rivers State; Omotosho in Ondo State; Gbarian Power Station, Bayelsa State; and Ogorode Power Station, Delta State.

    Stakeholders have urged the Federal Government to evolve a comprehensive gas plan to improve power supply. The President Liquifield Petroleum Gas Association of Nigeria Mr Dayo Adesina said the government’s decision to build more gas pipelines, pressure stations, central processing facilities (CPFs) and stripping plants, among other infrastructure, would help in increasing power generation.

    Adesina said shortage of gas had weakened the ability of the power firms, to improve generation and distribution since taking over the assets of the defunct PHCN late last year.

    The 15 power generation companies (GENCOs) and distribution companies (DISCOs), he said, had battled gas shortage, advising the government not to allow the independent power plants to suffer similar problems when they are privatised in June, last year.

    He said a sustained investment was needed to drive the sector, adding that certain number of megawatts must be added to the grid yearly to achieve growth.

    He said: ‘’There must be a concerted and sustained investment in the sector in the next couple of years. We should be adding 5,000Mw to the grid yearly to meet the demand.

    The population size keeps increasing which means that the demand for energy would also increase. As the infrastructure gets better, more people would come to grips with their jobs especially the small and medium enterprises (SMEs). The manufacturers, artisans and others need electricity for growth.

    “If today, they say the power plants can generate 10,000Mw available, where is the gas to power it? The whole value chain needs to be looked at. If you are producing 5,000MW, how many kilometres of pipelines are coming? How is the gas going to get the targeted power stations? ‘’

    He urged the government to introduce third-party scheme to enable power firms acquire gas through a secondary arrangement, such as buying gas from the Nigeria Liquefied and Natural Gas (NLNG) for power sector development.