Power privatisation threatened as bidders give FG conditions

The ongoing privatisation of power sector is facing a threat as winners of the 11 distribution companies of the Power Holding Company of Nigeria PHCN, yesterday issued the Federal Government fresh conditions before completing the balance of 75 percent for the bids value.

One of the conditions given by the investors is that the Federal Government must meet the established “condition precedent”.

They also requested for the extension of deadline by one month to September 21, for the payment with just about two weeks to the expiration of the deadline set by the National Council on Privatisation, NCP, for the payment of the outstanding 75 percent bid price.

Ten out of the 11 distribution companies with the exclusion of the Kaduna Distribution Company, who met with Minister of Power, Chinedu Nebo said the deadline of August 21 was not feasible.

Other demands by the bidders represented under the auspices of the Roundtable of Distribution Companies, the Disco Roundtable, are that the government must hand over the assets free of all legacy liabilities. They therefore, asked government to quicken the payment of severance benefits to employees of the defunct PHCN companies to allow them access funds to pay up the 75 percent balance.

The Chairman of the Disco Roundtable, Ransome Owan, who led the group, told the minister that government’s interactions with PHCN labour unions have remained a source of concern to financial institutions that are willing to lend money to the investors.

He explained that it was necessary for government to finalise the payment of the severance benefits before the stipulated August 21, adding that lenders expected the evidence of payments before funds are released for the completion of the payments.