Against expectations that the firm being backed by a former Head of State, Gen, Abdusalami Abubakar, Integrated Energy Distribution and Marketing Limited, will get at least two of the biggest power distribution companies in the country, it has been given only the Ibadan Electricity Distribution Company.
The company had led other bidders for the Eko, Ikeja and Ibadan distribution companies, considered to be the biggest and most commercially viable in the country, when the bids were earlier opened on October 16, 2012.
However, the National Council on Privatisation on Monday, in approving the outcome of the financial bid opening for the Power Holding Company of Nigeria’s successor generation and distribution companies, named Integrated Energy as the winner for the Ibadan Electricity Distribution Company with NEDC/KEPCO approved as the reserve bidder.
Significantly, the consortium being backed by the Ekiti, Delta, Edo and Ondo State governments to acquire 60 per cent stake in the Benin Distribution Company, Southern Electricity Distribution Company, was disqualified for submitting two different bids in violation of the rules.
Instead, the company went to Vigeo Power Consortium.
One of the rules guiding the privatisation process states that no company can be allowed to win more than two bids.
In addition, no company will be allowed to win both the Ikeja and Eko Electricity Distribution Companies, which collectively generate about 45 per cent of the total revenue of the Power Holding Company of Nigeria.
Instead of giving the Abuja Electricity Distribution Company to Interstate Electronics Limited, being promoted by business mogul, Mr. Emeka Ofor, which emerged the top bidder by offering Average Technical, Commercial and Collection loss reduction of 21.62 per cent, NCP awarded the company to Kann Consortium Utility Company Limited.
The Eko Distribution Company went to West Power & Gas, which came third behind Integrated Energy and New Electricity Distribution Company Consortium, while Honeywell Energy Resources International Limited, which came fourth in the bid opening round, was approved as the reserve bidder.
For the Enugu Distribution Company, Interstate Electrics Limited was named as the preferred bidder, while Eastern Electric Nigeria Ltd was approved as the reserve bidder.
Read more at Punch