The Nation Newspaper

Tag: BPE

  • NERC, BPE to monitor DISCOs, GENCOS

    NERC, BPE to monitor DISCOs, GENCOS

    The Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) are contemplating an inter-agency committee to monitor the 15 power firms.

    BPE’s spokesman Joe Anichebe told The Nation that the committee would monitor the activities of the firms since they took over the Power Holding Company of Nigeria (PHCN) assets last year to ascertain whether they have complied with the post-privatisation and regulatory laws.

    He said the committee would look at whether the companies have achieved some of their objectives or not, and their ability to meet the goals enshrined in the reforms act.

    The modalities for assessing the operators, he said, would be provided by the Committee.

    Anichebe BPE and NERC perform different functions, hence the need for them to jointly monitor the firms’activities from their perspectives.

    He said: ‘’There would be an inter-governmental agency committee to work out modalities on how to monitor the activities of the newly approved players in the power sector. The committee would be saddled with the responsibility of providing accurate and objective observation of the events in the sector to foster growth.”

    Anichebe explained that while the BPE would look at the post-acquisition plans of the companies and the Share Purchase Agreement (SPA), the NERC would look at the technical and regulatory obligations the companies are expected to meet to achieve their goals of improving electricity supply.

    ‘’ Under the post-acquisition plans, the firms told us the things they want to do; they told us what they intend to achieve within a particular period of time. Through the exercise, we would find out whether the companies have accomplished some of their set goals or not.’’

    Also, the NERC’s Chairman, Sam Amadi said the commission would ensure that the firms comply with the best practices of corporate governance. Amadi, who gave the assurance in a telephone interview with The Nation, said no stone would be left unturned in making the companies operate in line with the established frameworks. He said there would be checks and balances, adding that the firms must obey the laid down rules to ensures success of the reforms.

    NERC, in line with the Electric Power Sector Reform Act (EPSRAct 2005) is expected to formulate and implement policies that would protect the interest of consumers. It will also set and review tarrifs, issue licensces to operators, and where possible promotes competition.

  • Presidency approves bid opening 10 power plants

    Presidency approves bid opening 10 power plants

    The National Council on Privatization (NCP) and the governing board of the Niger Delta Power Holding Company (NDPHC) at the weekend approved the opening of the financial bids of the 42 prequalified bidders out of 66 bidding consortia for the 80 per cent equity in the 10 NIPP power plants.

    The joint meeting in Abuja that was chaired by Vice President Mohammed Namadi Sambo that gave the nod also directed that the bids be opened on March 7th, 2014 in keeping with the published timeline for the transaction.

    A statement of the Bureau of Public Enterprises (BPE) which made this disclosure yesterday, noted that the  42 bidders that have been prequalified met the criteria set forth in the requests for proposal (RFP) and passed the due diligence verification conducted on technically qualified bidders.

    The Vice President in his remarks commended the Joint Technical Transaction Committee (JTTC) chaired by Governor of Benue State, Mr. Gabriel Suswan, noting that the PHCN transaction, “was a highly transparent process and government had assured investors participating in the NIPP transaction that the same level of transparency will be replicated”.

    The JTTC is made up of the Technical Committee of NCP and Technical Committee of NDPHC.
    The NIPP Privatization is a joint transaction between the NCP and the Governing Board of NDPHC.  The 10 plants are jointly owned by the three tiers of government; local, state and federal governments with the Federal Government contributing 47% equity stake and the local and state governments with the remaining 53 per cent equity.

    The Vice President further noted that the privatization of the 10 NIPP power plants is the first time the private sector, National Assembly, Federal, State and Local governments are joining forces to ensure an all inclusive transaction process, following a highly successful investors’ fora spanning five countries.

    He said all the three tiers of government and the private sector in Nigeria were continuing to collaborate in the privatization process of the power plants which is being jointly offered for sale by the Bureau of Public Enterprises (BPE) and Niger Delta Power Holding Company (NDPHC) to ensure that the same level of transparency acclaimed the world over in the PHCN transaction was replicated in the NIPP transaction process.

    According to him, if Nigeria was going to be among the 20 largest economies in the world by the year 2020, the right steps must be taken, assuring that the administration of President Goodluck Jonathan is committed to ensuring that those right steps are taken going forward in implementing the Transformation Agenda; adding that this transaction is one such big step.

    The statement recalled that 66 proposals were earlier received from prospective investors interested in the 10 NIPP plants on November 8, 2013,

    An inter-agency evaluation team, including security agencies met from 12 to 22 November to evaluate the proposals, the evaluation report was subjected to the scrutiny of the Joint Transaction Committee and the Joint Technical Transaction Committee before approval by the Joint NCP/NDPHCN Board meeting. The Joint NCP/NDPHC board therefore approved that 42 out of the 66 were prequalified to continue to the financial bid opening stage.

    In order to be deemed technically qualified, the bidders must meet the following criteria in three broad areas as set out in the requests for proposal; namely:  completeness and substantial responsiveness; ability to finance the acquisition and relevant experience and quality of business plan.

    The 10 power plants being offered for sale are: Alaoji , Benin , Calabar , Egbema ,  Gbarain, Geregu , Ogorode , Olorunsogo , Omoku and  Omotoshho

  • Pay before assuming control, BPE warns DISCO owners

    The Director-General of the Bureau of Public Enterprises (BPE), Benjamin Dikki, has reminded the new owners of Afam Power Plc and Kaduna Electricity Distribution Company (KEDC) to pay before assuming control.

    According to a statement, while inaugurating the Transitional Committees (TCs) of the two companies in Abuja yesterday, Dikki said the Bureau initiated the TCs concept to allow the core investors to interact with the management and to enable them have first-hand information on the companies to prepare to implement the Post Acquisition Plan (PAP).

    He also said it was aimed at allowing the investors to interface with the management for a smooth transition from a public-oriented enterprise to a private sector-driven one and to engage them to understand the challenges and peculiarities of the company.

    However, the director general emphasised that they would not assume full ownership of the companies until full payment was made.

    “You are only allowed access to information and to acquaint yourselves with the working of the company but not decision-making. You should also not engage in any turf war with the management,” he said.

    Dikki said the practice was novel in the privatisation history in Nigeria and that the Bureau initiated it because of the complex nature of the power transaction.

    He hoped that the two committees would also be beneficial to the core investors.

    On February 21, last year, after a meeting with the Federal Government, management of the successor companies and the preferred bidders, it was resolved that after the payment of the initial 25 per cent deposit by the bidders, they would have the right to access the company facilities and participate in a Transitional Committee.

     

     

  • Privatisation: BPE, NERC promise improved power supply

    Privatisation: BPE, NERC promise improved power supply

    Dr Benjamin Dikki, the Director-General, Bureau of Public Enterprises (BPE), has promised to work with the Nigeria Electricity Regulatory Commission (NERC) to ensure improved electricity supply in the country.

    Dikki said that the two organisations would ensure that the new owners of the power companies met the country’s expectations of adequate power supply.

    This was contained in a statement issued in Abuja over the weekend made available to newsmen by the Head, Public Communications, Mr Chigbo Aniechebe.

    Dikki said that the bureau was aware of the high expectations of Nigerians from the outcome of the power sector reform.

    He said that this necessitated the BPE and NERC to put in place monitoring mechanisms to ensure that the new owners of the power companies fulfilled their obligations to improve power supply.

    Dikki said that during the privatisation exercise, documents were signed to give BPE and NERC the power to monitor these companies after the sales to help them ensure that power supply improved.

    He said that these agreements were the Share Sale and Purchase Agreement (SSPA), Performance Agreements (PA), BPE’s Post Privatisation Monitoring Template, NERC’s Reporting Compliance Regulation and NERC’s Terms and Conditions of Licensing.

    “SSPA clearly spells out the terms and conditions of sale of shares to the investors, while the PA contain terms of payment and Post Acquisition Plans implementation.

    “It also stipulates clear milestones the investor must achieve within a specified period.

    “The NERC’s Reporting Compliance Regulations clearly outlines the level of compliance to set standards by the companies.

    “Also, NERC’s license terms and conditions is the document that shows the mandatory requirements for acquiring a license and the violation of the terms will lead to NERC’s withdrawal of the license,” he said.

    Dikki said that among the documents was the Compliance Monitoring which gave BPE the right to audit, enter and monitor privatised enterprises every six months upon five days notice to the company.

    “The performance obligations and liquidated damages mandates the purchaser to ensure the company achieves the minimum performance targets, failing which the purchaser shall be made liable to pay liquidated damages for performance below agreed standards.

     

  • Court hears Otudeko’s suit against Dangote February 6

    Court hears Otudeko’s suit against Dangote February 6

    A Federal High Court, Lagos, on Tuesday fixed February 6 for hearing of a suit filed by Oba Otudeko against Alhaji Aliko Dangote and the Nigerian Ports Authority (NPA) over a land dispute.

    Justice Okon Abang adjourned the case at the instance of the counsel to Dangote, Mrs. Fola Sowemimo, to enable her to file written statement on oath.

    The News Agency of Nigeria (NAN) reports that Otudeko, Chairman of Honeywell Group, filed the suit in 2006 at Justice Ramat Mohammed’s court.

    He is claiming 48 million dollars against the defendants as damages for breach of contract over a 10.8 square metres of land within the Lagos Ports Complex, known as the 5th Apapa Wharf Extension.

    In the suit, the NPA, Bureau of Public Enterprises (PBE), Dangote Industries Limited, Dangote and Greenview Development Nigeria Limited, are listed as first, second, third, fourth and fifth defendants respectively.

    NAN reports that the suit was subsequently transferred to Justice Abang after the retirement of Mohammed.

    When the case came up on Tuesday, Counsel to the plaintiff, Dr. Joseph Nwobike (SAN), told the court that the case was slated for trial.

    According to Nwobike, he is faced with the challenge of retrieving the exhibits tendered before the former judge.

    The counsel, therefore, asked for an adjournment to enable him to retrieve the exhibits.

    Meanwhile, counsel to the third, fourth and fifth defendants, Sowemimo, has argued that the case was not yet ripe for hearing since the defence had yet to file its written statement on oath.

    She urged the court to grant an adjournment in favour of the defence, adding that “since the defence was unprepared it would serve the interest of justice to give them time to regularise.’’

    Abang had in a bench ruling adjourned the case to February 6 and ordered the defence to file its written statement before the next date of adjournment.

    In his statement of claim, Otudeko averred that by an agreement, NPA leased the land to him for five years for N2.2 million yearly.

    He said the land was to be used for the setting up a bulk food handling facility, adding that in keeping with the agreement, it paid the amount and additional N290, 000 for survey.

    According to the plaintiff, the BPE suddenly suspended his pre-existing rights, and granted the concession to Greenview Development Limited belonging to Dangote.

    He said that NPA and BPE later asked him to vacate the facility to ensure its smooth transfer to the new operator.

     

     

     

  • TCN chairman applauds BPE efforts in privatising power sector

    TCN chairman applauds BPE efforts in privatising power sector

    Alhaji Ibrahim Waziri, the Chairman, Transmission Company of Nigeria (TCN), has applauded the efforts of the Bureau of Public Enterprises (BPE) in the just-concluded privatisation of the power sector.

    A statement signed by BPE’s Head of Public Communications, Mr Chigbo Anichebe, said Waziri made the statement when he paid a courtesy visit to the bureau on Friday in Abuja.

    It quoted Waziri as saying the privatisation of the power sector by the Federal Government through the BPE would reposition the sector.

    The statement said the TCN chairman assured that the company was committed to playing its part in the sector’s reform by reaching out to all stakeholders to actualise the reform.

    It also quoted the Director-General of the BPE, Mr. Benjamin Dikki, as saying the bureau was committed to assisting TCN to succeed.

     

  • Fed Govt, electricity workers agree on severance payment deadline

    Fed Govt, electricity workers agree on severance payment deadline

    The Federal Government and the National Union of Electricity Employees (NUEE) have agreed that payment of severance benefits to former workers of PHCN would be completed by end of January 2014.

    This is contained in a resolution reached at the end of a reconciliatory meeting between the two in response to 14 days ultimatum letter by the NUEE.

    The resolution which was made available to the News Agency of Nigeria (NAN) in Abuja yesterday was signed by Dr Clement Illoh, Permanent Secretary, Federal Ministry of Labour and Productivity.

    Others were Amb. Godknows Igali, Permanent Secretary, Federal Ministry of Power, (FMP), Mrs Omojola Martina, Represntative of Bureau of Public Enterprises (BPE), and Mr Mansur Musa, National President, NUEE.

    Mr Olusegun Babatunde, General Secretary NUEE, Mr Bede Opara, President General, Senior Staff Association of Electricity and Allied Companies (SSAEAC) AND Mr Abiodun Ogunsegha, General Secretary, SSAEAC also signed.

    They resolved that: “The allegation of non-payment of entitlements to staff covering July 2012 should be referred back to the implementation committee for conclusion within January 2014.

    “The complaint of victimisation of labour leaders to be handled by the FMP and BPE in accordance with extant regulations within January 2014.

    “ Workers who are being owed salary arrears and have not been severed will be paid by the Federal Government and should stay in position until they are paid.

    “The FMP and BPE would fund a workshop to be organised by Federal Ministry of Labour and Productivity in the first week of February 2014 for the new investors, unions and other stakeholders in the industry.’’

    They also resolved that all admitted casuals would also be paid on or before the end of March 2014 while progressive payments would be tracked.

    It directed that all pensions should be processed and payments effected accordingly.

    “Furthermore, the 7.5 per cent employer pension contribution of July 2012 to Oct. 31, 2013 will be paid.

    “Payment of deductions from Nov. 1, 2013 to date will be paid by the new operators into workers Retirement Savings Accounts (RSA).

    “BPE and FMP are to fast track approval and payment of death benefits to beneficiaries within one month’’, it was further agreed.

    On staff re-engagement letters said to be withheld by some new investors, it was agreed that the BPE should submit comprehensive list of the re-engaged staff for confirmation.

    It also directed the implementation committee to set up verification subcommittee to establish payment of certain entitlements listed in agreement of Oct. 2013 and identify those stations that had paid or not.

    The resolution stated that any reduction in the stoppage of salaries and wages of staff by the new investors was a violation of Section 21 of the Electric Power Sector Reform Act 2005.

    It directed that such deductions should be reversed by defaulting operators where it occurred.

    “BPE should submit the list of the 483 unclear Retirement Savings Account (RSA) Holders to the technical sub-committee for rectification.

  • Fear grips electricity workers as probation ends in April

    Fear grips electricity workers as probation ends in April

    Electricity workers are under intense pressure to deliver as the six-month probation given them by the 14 power firms expires soon.

    The Bureau of Public Enterprises (BPE), last November, sacked about 70 per cent of the 48,000 workers of the Power Holding Company of Nigeria (PHCN), putting the remaining 30 per cent on probation for six months starting from November 2013 to April, this year.

    The Nation gathered that the generation companies (GENCOs) and distribution company (DISCOs) gave a ‘’tough’’ schedule regime for the workers.

    While some are doing the job of two or more people, others do the work of four to fill the vacuum created by the retrenchment.

    In some of the business units visited in Lagos, workers were making frantic moves to meet set targets.

    A worker of the Ikeja Electricity Distribution Company, said meeting the targets set by the firms has been difficult. He said the shortage of manpower has put workers under serious pressure.

    He said: ‘’The overhauling of the PHCN and the retrenchment of workers last year have caused anxiety in the industry. Those retained by the power firms, live in fear. The reason is because the firms have promised to review the workforce soon. There has been intense lobbying by the staff to regularise their appointments. Besides, a worker does the work of three or four people. I was assigned to distribute bills in four communities, a job hitherto assigned to two or more workers.”

    Also, a female worker at the Ojodu Business Unit, said the workers were living in fear as the probation period lapses soon. She said many workers are uncertain about their future since they may be thrown out of job soon, adding that it is certain that more workers would go, going by the pronouncement of some operators.

    She said staff were working harder to win the confidence of their employers, arguing that the means may not justify the end. According to her, many of the workers do not know the parameters which the companies would use to assess their performance, urging the companies to be fair.

    The President, National Union of Electricity Employees (NUEE), Mansur Musa, said the workers had been subjected to unnecessary pressures since the companies took over the assets of PHCN last year.

    Musa said the workers were made to undertake more responsibilities, adding that they are in dilemma as the expiration of the probation period draws nearer.

    He said: “We are fighting our battles from two fronts. First, we are working to ensure the operators do not sack more people after the probation period. Secondly, we want to ensure that those disengaged from services are recalled. We do not want the sector to collapse, hence the decision to appeal to the government to handle the workers’ issues with caution. To secure quality hands is not easy. That is why the government needs to reconsider its decision on some labour issues.”

    He said the business units and other locations managed by the power distribution companies could not boast of enough funds, stressing that the issue has affected their operations.

    ‘’ We have been trying to tell the government that the money level in the business units and other locations have been depleted. This has worsened the workers’ plight because the power distribution companies were not ready to employ more hands. What we see is mounting pressure in the industry. If the trend continues, there would be industrial accidents. The workers are going to burn out, as a result of stress. When this happens, low productivity would set in and the DISCOs and GENCOs would not be able to achieve their goal of improving power supply.”

    The Spokesman, Ministry of Power, Timothy Oyedeji, said the workers should understand that the government is trying to fix the sector. The government sold the PHCN to investors, provided blueprint for them to operate and cannot interfere in their decision making, he said.

  • Pay ex-Delta Steel staff balance of severance pay

    Pay ex-Delta Steel staff balance of severance pay

    SIR: As part of the federal government’s economic reforms, Delta Steel Company Ltd, Ovwian Aladja was privatized to Global Infrastructure Nigeria Limited during the first quarter of 2005.

    In order to ensure unhindered takeover of the company, all employees at the time were disengaged by a letter dated June 30, 2005. Prior to the date, the then Minister of Power and Steel, Senator Liyel Imoke had declared that “No Staff will be owed any entitlement – gratuity and severance after June 30, 2005”. The Minister further promised that before the handover date “all staff will be trained”. In addition to the Minister’s declaration, the Director General Bureau for Public Enterprise promised that each disengaged staff will be entitled to their monthly salary pending the final settlement of their severance pay. The promises were not kept.

    At the time staff were disengaged, the government approved a severance pay (lump sum payment in lieu of staff monthly pension payment) of N9.86 billion to various categories of staff.

    In all approximately 4781 former employees were involved.

    Only about 45% of the approved severance sum of N9.86 billion has been paid as follows: N2.86 billion out of N9.86 billion or about 30% of severance pay in July, 2007; about 15% of the N9.86 billion severances pay in January 2009.

    The remaining 55% of the N9.86 billion (about N5 billion) is still outstanding.

    When it became obvious, early in 2008 that government was indifferent to the plight of DSC ex-staff, the then DSC management of the privatized DSC constituted a committee under the chairmanship of Engr. Dr Okibe .M. Udeh to liaise with the Bureau Of Public Enterprise (BPE), Federal Ministry of Power and Steel and other relevant government agencies towards ensuring that the outstanding severance payment of about N5billion was paid.

    As part of its efforts and efforts of other stakeholders, the National Assembly conducted Public Hearing on the privatization in the steel sector and among the resolutions passed was that DSC ex-staff outstanding entitlements be paid.

    Government’s refusal to fulfil her responsibilities to her citizens by paying benefits to those who have spent a greater part of their lives at Delta Steel has resulted in avoidable deaths as a result of hardship arising from delay in the payment of the severance pay-off.

    It is over eight years since the privatization of Delta Steel and regrettably issues of staff entitlements have not been satisfactory resolved. This is just another example of the injustices that goes on in our society everyday with innocent citizens being mistreated by people in authority who wish them dead.

    It is the height of failure of leadership that in eight years our leaders cannot pay about N5 billion owed sacked law abiding citizens. Please help us tell the President to pay us.

     

    • Engr. Dr Okibe .M. Udeh,

    Otukpo, Benue State.

     

  • FG spends N360bn on PHCN workers’ benefits

    The Federal Government on Tuesday said it had spent more than N360 billion on the payment of severance benefits to workers of the defunct Power Holding company of Nigeria (PHCN).

    The Director-General, Bureau of Public Enterprise (BPE), Mr. Benjamin Dikki said this in a chat with the News Agency of Nigeria (NAN) in Abuja.

    He said the payment was in accordance with the agreement to settle the severance benefits to the affected workers.

    Dikki said that at the beginning of the privatization process, the budgeted cost for the settlement of labour liabilities in the sector was put at N401 billion.

    “The BPE contributed N315.6 billion from the sale of PHCN asset, while the Federal Government provides N45 billion to bring the amount so far remitted to more than N360 billion.

    “It would be recalled that the federal government had demonstrated great commitment in resolving labour issues in the power sector reform and privatization.

    “ From the beginning, it had committed the entire proceeds realised from the sales of the power assets to the payment of the worker’s terminal benefits.

    “ The N360 billion so far spent was forwarded to the office of the Accountant-General of the Federation to settle 51,247 PHCN Staff, both active and retired,’’ he said.

    Dikki also said that of the 51,247 workers, 47,913 were active staff, and 3,334 were retired staff of the company.

    The Director-General said 2,158 staff, comprising casual workers and those not properly documented, were yet to be settled.