The federal government has approved the pre-qualification of 386 expressions of interest (EOIs) submitted by 82 of the 110 consortia that earlier expressed interest in the acquisition of 80 per cent equity in the 10 Nigeria Independent Power Project (NIPP) plants jointly owned by the three tiers of government.
The National Council on Privatisation (NCP) and the Board of the Niger Delta Power Holding Company Limited (NDPHC) had at its second meeting on August 12 approved their pre-qualification.
With the approval, the 82 consortia were now ready to move to the Request for Proposal (RFP) stage of the transaction.
At the close of the deadline for the submission of EOIs by prospective investors in July, 110 consortia had submitted EOI.
Consequently, two evaluation teams were constituted to evaluate the submissions based on the approved guidelines.
The guidelines provided that to be technically qualified, bidders must show evidence of experience in operating at least 300 megawatt of thermal generation plant for about three years and to be deemed financially qualified; meet a tangible net worth threshold of $100-$200 million depending on the size of plant they wish to be pre-qualified for, among other requirements.
However, following the evaluation, 82 of the 110 submissions were successful and had been approved to continue to the RFP stage.
According to a statement signed by the spokesman for the Bureau of Public Enterprises (BPE), Mr. Chigbo Anichebe, the Joint Board also approved the issuance of the RFP to the pre-qualified bidders from August 19.
The joint meeting, which was chaired by Vice-President Namadi Sambo further approved the recommendation of the Joint Technical Transaction Committee (JTTC) to allow Technical Services Providers (TSP) with no equity stake in the consortia, to participate in the privatisation process with as many bidders as it chooses.
The BPE and NDPHC were partners in the joint sale transaction process for the sale of the 10 power plants.
While NCP and the BPE are legally authorised to sell federal government’s 47 per cent shares, NDPHC has the authorisation of the states and local government areas to sell 53 per cent of their shares