The crisis ravaging the distribution sector of the electricity value chain is getting messier, as the Federal Government has handed down guidelines to Banks and other lenders which now assumed the positions of core investors in the electricity distribution companies on how they should dispose off their 60 percent their equities.
The banks assumed the position of core investors following the failure of original investors to pay back the loans which they used to purchase the 60 percent equity from the Federal Government.
According to a report by ThisDay, the Bureau of Public Enterprises (BPE) has issued guidelines to banks and other lenders for the sale of their 60 percent shares in power distribution companies (Discos).
This was said to have followed a memo presented at the meeting of the National Council on Privatisation (NCP) by the Director-General of the BPE, Alex Okoh on the matters affecting the restructuring of the Discos that are affected.
The affected discos are Kano, Benin, Kaduna, Ibadan, and Port Harcourt DisCos.
The council was informed at the meeting that the notifications of change of Directors for all the DisCos had been filed at the Corporate Affairs Commission, while the BPE had issued guidelines to the banks/lenders for the sale of their 60 percent shares in the assets.
The NCP also received updates on the sale of five NIPP Power Plants, particularly the engagements with the Nigerian Governors Forum on the NIPP transaction, and the resolution by the governors to constitute a committee to review the transaction and revert to the Bureau.
The Council expressed satisfaction with the BPE’s handling of the engagements with the governors on the sale of the NIPP and the federal government’s 40 per cent interest in the Aba Ring-fenced area.
NCP members that attended the meeting included Ministers of Power, Alhaji Abubakar Aliyu; Finance, Budget and National Planning, Zainab Ahmed; Director-General of the BPE, Alex Okoh; representatives of Federal Ministry of Justice, heads of relevant MDAs and other senior government officials.
The Council also received an update on the development of a 1,650 Mega Watts Hydro Power Plant in Makurdi, Benue State, particularly the inauguration of the Project Steering Committee and the proposed publication on the Expression of Interest for the engagement of a Transaction Adviser for the project.
On the concession of the Zungeru Hydroelectric Power Plant, the Council was informed that Requests for Qualification (RfQs) were received from 11 Consortiums, out of which three (NSP Consortium, Mainstream Energy and Africa Plus Partners) were shortlisted to present proposals for the concession.
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