http://nationalmirroronline.net/new/privatisation-66-firms-bid-for-10-nipp-power-plants/ The Federal Government has said that 66 companies have submitted bid papers for the purchase of the 10 gasfired generation companies developed under National Integrated Power Projects, NIPP. Managing Director, Niger Delta Power Holding Company, NDPH, Mr. James Olotu, disclosed this at the opening of the proposals yesterday in Abuja. He said that 4,500MW of electricity would be added to the national grid when the companies come on stream.

“Sixty-six companies bidded and 66 bids were opened today, there were no immediate disqualification. “One of the reasons for immediate disqualification would be that one of the important items was not there. But most of them met the primary requirements. So, we will now go to the proper evaluation stage,” he said. Olotu added that the bid process would be completed by November 23, 2013, and completion of the sale expected in January next year.

He explained that the parameters for evaluation would be the competence of the companies to operate and manage the power plants; financial capability to actually invest and that the consortium is such that would not break up along the line. Olotu stated that the bidders would be evaluated and scored, adding that any bidders who scored below 75 per cent would not make it to the financial bidding stage.

According him, each bidder is required to have a minimum of $100m (N16bn) net worth for one asset to ensure their financial capability. He said the bid exercise would produce only one winner per asset after stringent evaluation of the companies’ financial and technical competence. Olotu said the shortlisted bidders would be announced at the end of the technical appraisal, which might take two weeks.

The NDPH boss noted that the evaluation process of the bid would be in three parts, including compliance, technical and financial bid evaluation of the companies to ensure that the country would not be short-changed by the eventual winners of the bids. Minister of Power, Prof. Chinedu Nebo, commended the bidders that beat the deadline for the submission of the bid proposals by 5p.m. on Friday. Nebo assured that transparency and accountability would be maintained throughout the bid processes.

Security personnel from the State Security Service, SSS, the police and the Economic and Financial Crimes Commission, EFCC, as well as the World Bank, USAID and other organisations witnessed the public opening of the proposals. He urged the companies that would eventually emerge successful to ensure they play by the rules of the transaction.

The plants include Omotosho II Power Station (NIPP) Omotosho Simple cycle gas turbine 450 MW; Sapele Power Station (NIPP) Sapele Simple cycle gas turbine 450 MW; Omoku Power Station Omoku Simple cycle gas turbine 150 MW; Olorunsogo II Power Station, Geregu I Power Station, Geregu Kogi State Simple cycle gas turbine 414 MW, Calabar Power Station and Egbema Power Station. National Mirror gathered that three companies bidded for the Alaoji Power plant; four for Egbema, Ogorode eight; Omoku eight; Gbarain eight; Omotoso 13; Calabar six; Benin four and Olorunsogo five.

Meanwhile, the power shortage being experienced in all parts of the nation may continue following the inability of stakeholders to complete the maintenance of the facility to supply gas to Afam VI power plant. The maintenance of the facility, which caused electricity supply to drop by as much as 400 megawatts, was scheduled for completion last Saturday. But investigations yesterday showed that the rehabilitation had not been completed.

A senior official of Shell Petroleum Development Company Limited, who did not want his name mentioned, said: “We are still trying to fix the problem. It may take a little while. “A team of engineers are working day and night to solve the problem. Certainly, it would be completed in the coming weeks.”

A top official of the Transmission Company of Nigeria, TCN, said the power generation had not improved because of the inability of Shell to complete maintenance of the facility. He said: “As soon as the maintenance is completed, more gas would be supplied to boost power supply in the nation.”

However, the reports showed that the operations of other stations, including Egbin, Kainji and Sapele, were crippled because of some challenges. President, National Union of Electricity Employers, NUEE, Mr. Mansur Musa, told National Mirror that the sector presently lacked sufficient technical personnel to carry out maintenance.

He said: “The Bureau of Public Enterprises, BPE, sacked about 60 per cent of them before the handover of the GENCOs and DISCOs to the private investors. “This clearly explains why many GENCOs and DISCOs do not have adequate experienced engineers to carry out maintenance of facilities whenever problems occur in recent times.”http://nationalmirroronline.net/new/privatisation-66-firms-bid-for-10-nipp-power-plants/