Following the payment of 75 per cent balance for the Power Holding Company (PHCN) successor companies, the private investors will in October take over the entities. They are 10 distribution companies (Discos) and five generation companies (Genco), reports JOHN OFIKHENUA
THE waiting game is over. Money has exchanged hands and in October, power will change hands. The 10 distribution companies (Discos) and five generation companies (Genco), which are the successor companies of the Power Holding Company of Nigeria (PHCN), were paid for on Wednesday by private hands.
The Yola and Ibadan Discos will from Octoberbe run by Integrated Energy Distribution and Marketing. Former Head of State Abdulsalami Abubakar is the chairman of the company.
The Benin Distribution Company will be managed by Vigeo Power Limited, a multi-business group with interest in Nigeria. Its chairman is Gbolade Osibodu, husband of theformer Managing Director of Union Bank, Funke.
The Eko Distribution Company is now in the firm grip of West Power & Gas, a consortium comprising Alpha Consortium Limited, Atlantic Meridean, Africa Infrastructure Investment Fund 2 Mauritius and Siemens Limited of Germany.
KEPCO/NEDC consortium is now the owner of the Ikeja Disco. The entity will now be under the control of the Korea Electric Power Company.
For Abuja Disco, KANN Consortium Utility Company Ltd is now in charge, while the Enugu Disco had its deal suspended because the preferred bidders was yet to complete their 75 per cent.
Other winners of discos are the Sahelian Power SPV Limited (Kano Disco) and Aura Energy Limited (Jos Disco).
For the generation companies, the former Chief Executive Officer, UBA, Tony Elumelu, who is also the Chief Executive Officer, Transcorp & Woodlock Consortium, now owns the Ughelli Power Plc.
Elumelu is committing $2.5 billion to the power sector in Africa. The investment is being made through his pan-African proprietary investment company Heirs Holdings – the single largest investor included in the White House statement announcing the Power Africa initiative.
Power Africa is a multi-stakeholder partnership between the United States, the governments of Ghana, Tanzania, Kenya, Liberia, Nigeria and Ethiopia, and the African private sector, with the shared objective of accelerating investment in Africa’s power sector over the next five years. The initiative was launched in South Africa during Obama’stown hall at the University of Cape Town.
Elumelu’s holding company, through its investee company, Transnational Corporation of Nigeria (Transcorp), purchased the Ughelli power plant, which it plans to restore to its full generating capacity of 1000 megawatts.
Elumelu said: “The investment we are makingdemonstrates our intent to become a significant player in the power sector. It also shows in a clear and meaningful way that African capital can and should be part of the solution to Africa’s challenges. We need more African companies to step up and get involved in Africa’s development.
“Heirs Holdings’ investment in Power Africa isnot just about creating value for shareholders. We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits – a key component of what I call Africapitalism. Access to affordable, uninterrupted power will have an immeasurable impact on the economic ecosystem. The cost of doing business will come down, entrepreneurs will expand and innovate, and jobs will be created as a result. That is a very tangible example of what Africapitalism is about: the private sector creating economic prosperity and social wealth.”
Mainstream Energy Solutions owns the Kainji Genco, CMEC/EURAFRIC bought the Sapele Power Plc. Shiroro is now the property of CMEC/EURAFRIC, while Geregu Power Plc is now for Amperion Power Company Limited.
As the public sector prepares to relinquish the operation of the power sector to its investors, the industry is bound to witness significant changes.
The Ministry of Power said it would meet the timeline slated for the handover of the powersuccessor companies to their investors. Minister of Power Prof. Chinedu Nebo said it would not be business as usual in the industry.
The bidders have honoured their path of the obligations they signed with the Federal Government to complete their payment within six months, what is left to be seen is the government making good its promise.
Only a few days before the August 21 deadline for the payment, the would-be operators of the sector flooded Abuja to request the Federal Government to remove some of the barriers that may affect the smooth running of the power sector

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