by Topsy Oba
The National Council on Privatisation (NCP) on thursday approved the sale of 70 per cent of Egbin power plant in Lagos to a Korean firm, KEPCO for $407.3 million.
The Chairman of the Technical Committee of NCP, Mr Atedo Peterside, stated this in an interview with State House Correspondents in Abuja after the monthly meeting of the Council.
The meeting was presided over by its chairman, Vice President Namadi Sambo at the Presidential Villa, Abuja.
Peterside said the Egbin plant was currently valued at over $670 million, more than the $549 million placed on it in 2007.The News Agency of Nigeria (NAN) reports that the Federal Government began negotiations in 2007 to sell only 51 per cent equity share of the plant to the firm.
He also revealed that the Council approved the sale of power generation plants at Omotosho in Ondo and Olorunsogo in Ogun to Chinese firms as part of the ongoing privatisation programme of the power sector.
Peterside said the two plants, Omotosho and Olorunsogo, which were being constructed by the Chinese firms, were valued at $166 million.
According to him, the NCP offered the plants on right of first refusal to the Chinese firms.
He said this was because they would naturally understand the plants better and have agreed to a sale price the Council considered reasonable enough.
He said that except for Afam plant, “every other power plant owned by PHCN now has a core investor”.
The Chief Executive Officer of Forte Oil, a partner of Amperium Consortium, Mr Akin Akinfetiwa, presented a confirmation of payment of $33 million and a local component of N519.12 million paid into NCP’s account.
Peterside, who received the confirmation letter on behalf the NCP, said the amount represented 25 per cent down payment for acquiring 51 per cent share of Geregu power plant.
PM
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