[size=13pt]Zambian firm bids for Nigerian power companies[/size]

Zambia’s power distributor to the mines, Copperbelt Energy Corporation, is planning to borrow to purchase two of Nigeria’s power distribution firms scheduled for privatisation.


The distribution arm of the Power Holding Company of Nigeria has been split into 11 different units valued at about $100m each.


The consortia that CEC is in have been shortlisted to buy at least two of them, a senior official of the company told Reuters on the sidelines of an investor conference in Johannesburg.


Nigeria’s power sector reform is aimed at improving efficiency and cutting persistent electricity outages.


Besides the Zambian company’s interest, Ghana’s Volta River Authority and the Kenya Electricity Generation Company have also expressed interest in bidding for some power generation firms. VRN is bidding for three hydro stations – Shiroro, Kainji and Jebba – slated for concession; while KenGen had also signified interest in Afam, Geregu, Sapele and Ughelli thermal power plants.


“We still have some leverage on our balance sheet. We can raise some money through the balance sheet and then we can do a rights issue depending on how good the deal is,” CEC’s Director of Corporate Finance, Mutale Mukaka, said.


“The first call is the balance sheet, and thereafter, if we need more, we can leverage it through bringing in more equity in the business,” he added.


Mukuka said that the CEC also expected electricity demand to exceed the pre-crisis level of 540 megawatts in at least 18 months as new mines come on stream and existing operations expand.


Africa’s top copper producer expects at least two new mining operations to begin in coming months. These are the Brazilian VALE’s Konkola North mine and the Muliashi mine owned by China Nonferrous Metals Company Limited.


“With all these projects coming on stream and taking up power, definitely that will call for additional load,” Mukuka told Reuters.


“Each of the existing operations is also trying to maximise copper production and take advantage of the price,” he said.


Zambia has vast high-grade reserves of the metal and expects output to more than double to around two million tonnes by 2015.

http://www.punchng.com/Articl.aspx?theartic=Art20111004353759

A beg, let the rats eat up the elephant (giant of africa)

wat do we have to show to be named giants of africa? Nothing gud. Giants at fraud and wateva comes illegally and giants at corruption,

If it takes a Zambian corporation to bring light to Nigeria, so be it.

We can become arrogant again after electricity is functional in Nigeria. Now is the time for humility.

ekt_bear:

[b]If it takes a Zambian corporation to bring light to Nigeria, so be it.[/b]We can become arrogant again after electricity is functional in Nigeria. Now is the time for humility.

Wiser words have never been spoken

ekt_bear:

If it takes a Zambian corporation to bring light to Nigeria, so be it.

We can become arrogant again after electricity is functional in Nigeria. Now is the time for humility.

 I totally agree with you.
But what  happened to the Brazillian Power company that declared interest earlier?

What has the size of a country got to do with the technical, financial and managerial prowess of a cooperate entity?

If the zambian based energy has what it takes to engage in sound business in Nigeria, then let them bid and if successful, they should proceed to take over the distribution firms.

So long as they give Nigeria power at a reasonable cost, then I am up for it but if it is one of those capitalist ventures front companies, they really should stay clear of Nigeria.

ekt_bear:

If it takes a Zambian corporation to bring light to Nigeria, so be it.

We can become arrogant again after electricity is functional in Nigeria. Now is the time for humility.

I wish Nigerians would be more pragmatic, and less sentimental.   We always seem to be chasing shadows and bragging about nothing and look at where that has got us.

First it was a Brazilian company, now it's Zambian. Confusion go still break bone one day.

ekt_bear:

If it takes a Zambian corporation to bring light to Nigeria, so be it.

We can become arrogant again after electricity is functional in Nigeria. Now is the time for humility.

SEE SENSE

kulutempa:

I wish Nigerians would be more pragmatic, and less sentimental.   We always seem to be chasing shadows and bragging about nothing and look at where that has got us.  

TALK DEM OOOO

They actually want to borrow to buy the companies,how do they recoup their investment?is it by increasing electricity tariff astronomically?find a better buyer with the technical know how(not a mining firm

I hope nigerian officials will scare them away with bribe. Because it is official duty of nigerian officials to demand for certain amount of money as bribe from foreign firms. This is one of the reasons that we are still back ward.

why una dey complain sef;

dont u knw that if a matured woman did not respect herself; na small boy of 15yrs
go b ontop of her in the bed,


so leave Zambian alone

ok

Oh boy see INSULT sha! Nigeria is truly a failed state indeed!. . . . Zambia of all people?!

Wht an insult. Zambia firm to purchase Nigerian power companies. na wa ooooo. which way Nigeria?

There govt knows what to go for.

I was happy to hear this news.I have been in Zambia for close to 2months now and i only experienced power failure once(3hours).

The company in question is one of the major power distribution company here in zambia.Forget the useless giant of africa thing o. i still

cant believe my eyes that zambia of  all countries will have a better and stable power supply than Nigeria. All things being equal, i am

pretty sure that this company will perform well if given the chance to operate.

See where corruption has led this country to ! Maybe they should even privatize the country sef maybe things will get better.

@phreakbit & sucnif. U had better wake up to reality. I nearly shed tears wen i first came to zambia and found out this.  Thats the state of our nation.

~Bluetooth:

See where corruption has led this country to ! Maybe they should even privatize the country sef maybe things will get better.

lol

And Liberia will buy and manage Abuja

@ bluetooth Zimbabwe is a privatised country.

Naledi14:

@ bluetooth Zimbabwe is a privatised country.

Maybe if Nigeria can be privatized,it will be better too !

very soon togo n cotonou will buy nigeria port. Gud luck to nigerians.

You can see this mess we are in. A company in a small country trying to BORROW to buy key assets in a bigger country. Pity. Real pity.

I mean, what the hell is Shell and Agip here for. To just milk us dry. How can you compare the service arm of a mining company to the global giants who flare our gas and throw away millions every day. Can't we compel them to burn it for power in exchange for immunity from their environmental and economic crimes.

If the Zambian company is competent because it powers copper production, then out oil companies should be able because they produce gas.

I bet the private output of the combined IOC's already exceeds that of the Zambian company so getting it across the country should only be a matter of scale.

If we cannot have solid internal competition in the power game we certainly will not be able to control tariffs nor mitigate the type of shows we see in the likes of Airtel.

No one has been able to explain why the IOC's have not expressed interest in power or petroleum. What's it about this country that attracts only the very mediocre.

untill when foreigners make plans to buy our fundamental rights that's when our leaders gotta do something reasonable. of course our rights are being infringed upon!
Our oaf and slacked leaders are always in talents hunt tour for aliens to come and managed our unavoidable affairs in their own domain. Shame on them

The un-reported part of that story is dat,the said Zambian firm is a front for one politician in Nigeria sitting innocently somewhere. Ofcourse we will not hear this part reported until may be after 2015. Amazing country!

okunboy:

The un-reported part of that story is dat,the said Zambian firm is a front for one politician in Nigeria sitting innocently somewhere. Ofcourse we will not hear this part reported until may be after 2015. Amazing country!

you can be right

Reference:

You can see this mess we are in. A company in a small country trying to BORROW to buy key assets in a bigger country. Pity. Real pity.

I mean, what the hell is Shell and Agip here for. To just milk us dry. How can you compare the service arm of a mining company to the global giants who flare our gas and throw away millions every day. Can't we compel them to burn it for power in exchange for immunity from their environmental and economic crimes.

If the Zambian company is competent because it powers copper production, then out oil companies should be able because they produce gas.

I bet the private output of the combined IOC's already exceeds that of the Zambian company so getting it across the country should only be a matter of scale.

If we cannot have solid internal competition in the power game we certainly will not be able to control tariffs nor mitigate the type of shows we see in the likes of Airtel.

No one has been able to explain why the IOC's have not expressed interest in power or petroleum. What's it about this country that attracts only the very mediocre.

Shell and AGIP already generate power in Nigeria. They both own IPPs in the Niger Delta and sell that power to the PHCN. To my knowledge, they are both doing it at a loss since it costs them marginally more to generate than what PHCN is paying them. They can afford to soak that loss because they are making lots more money exporting crude.

As for the flaring of gas, it is more economical for the IOCs to flare gas in Nigeria than build gas gathering, processing and distribution infrastructure to generate power. Why? because the FG fixes gas prices in Nigeria to far below export parity while it costs billion of dollars to build gas infrastructure.

It's more economic to export the gas (which they already do through NLNG), re-inject it into the ground or flare it. They would stop doing that if the PHCN is ready to sign internationally bankable gas supply agreements and pay market prices for gas. PHCN can't do that for reasons which you already know! You can't compel companies to invest in ventures that is guaranteed to loose money.

true talk

Another high powered F.G scam in d making.Nigerian Politicians fronting non nigerians with their ill goten wealth to buy up d countries owned companies at a rediculous amount, something far lesser than its value after massive capital impute ovr d years but wld be under valued by BPE and sold to a politician who is fronting a white man or other nationals which the F.G knows pretty well but pretend as if they aint a part of this economic sabotage fooling us all and making it look as if the comon man ve alot to benefit from it mean while its jst a magic (d more u look d less u see). They r buying up our comon wealth at a cheap by themselves and tag it PRIVERTIZATION. Lord v mercy on us.

See how the mighty are fallen!

First Indians
Second Asians
Now Zambian
Soon PHCN staff will cry out.
Sorry Nigeria, Sorry our business men
Please lets all continue to start and run small scale businesses thats what we are best for abi?