Written by Ayodele Adesanmi, Abuja
Friday, 19 October 2012

BARELY two days after  the  Bureau of Public Enterprises (BPE) opened  the bidding  of the distribution companies under the Power Holding Company of Nigeria (PHCN)  and sold  the Benin  Disco  to Vigeo Power Consortium, the Edo, Ekiti and Delta states governments have protested, saying they would not allow it to operate within their domains.

The states, under the company name Southern Electricity Distribution Company, equally bid but lost to Vigeo which is partly owned by Mr Victor Gbolade Osibodu, a businessman.

The governors of Edo, Ekiti and Delta states, in a joint briefing, said “our states have invested heavily in power generation, transmission and distribution across the length  and breath of our respective state as we recognised the importance of power as the pre-condition for socio-economic growth and industrialisation of our states.”

Delta State governor, Dr Emmanuel Uduaghan,  who spoke on behalf of others, informed that their participation was based on the technical competence and that they had the consortium that is most suited to the peculiarities of their region.

He, therefore, stated that they would never allow Vigeo Power Consortium to operate in their states,  because “you cannot succeed  in operating the utility without the participation of the state governments  on the ground, knowledge and relationships with the different stakeholders such as youths, communities, leadership. Our consortium possesses all these and no other does.”

Governor Uduaghan added: “Why would a company whose current service territory is 500 square kilometre  be technically qualified to operate a 57,000 square kilometre service territory in an area like the Niger Delta Region, without any local knowledge of this troubled area at all?”

He added that the process was fraudulent and not acceptable, saying that for  it to work, the host states need to be involved, adding that “we need to be involved and we are crying to Nigerians.”

http://tribune.com.ng/index.php/front-page-news/49468-power-distribution-we-wont-allow-firm-to-operate-edo-ekiti-delta-govs

The states in question should have highest priority to buy the discos, imo.

I dunno how Benin Disco was sold off to someone that the states being serviced don't even approve of

I'm expecting Lagos state to follow suit...

Edo,delta & ekiti governors shud pls STFU! They will nt remain in power forever! Wat if wen their tenure expires & a silly govt ƇϑmƏ onbaord? †ЂΞ best tin they shud ask for is τ̅o be allowed τ̅o co-operate wit whoeva wins †ЂΞ bid for †ЂΞ said Benin Disco. Sekina

Na today? GOD help Nigeria

Do they want the company to pay them royalty?
Or has someone sown discord in their hearts?

Christambasador: Na today? GOD help Nigeria

a big AMEN to that.

All I want is 24hours of light in ekiti

Uduaghan and his compatriots should please STFU,oh they want the discos to be handed over to the state controlled companies so that inefficiency will continue to reign,we don't want anything govt again,they have over disappointed us,pls uduaghan,you and your fellow governors have better give this process the support it requires,did they tell them they wil be in power forever,today they talk their own and then go,tomorrow another governor will come and say his own and you will hear it is change of govt policy,we don't want. Pls let the private sector take total control

They have not yet given us d full facts prompting their protest. Was d process fraudulent just because the company or consortium that won is technically not qualified? If the issue is all about knowing the lay of d land, then they shd partner with them and show them round.
If the consortium wasn't qualified in d first place, they shd hv raised these objections prior to submitting themselves to d bidding process.

When I saw that some state governors formed a consortium to bid for power discos, I felt uncomfortable with that idea.
My discomfort stemmed largely from our history of failed government enterprises. Nigeria govt has a very bad public sector attitude which hinders the growth and proper management of their corporations. The very idea of privatization arose out of the need to divest govt of control and vest in private hands.This state govt consortium thing is a negation of that idea.

I'm very happy that they did not win the bids. I salute BPE for that. I prefer to deal with a private company, no matter the size, than to a govt owned gigantic consortium.

Uduaghan dey find money to chop from power. Make una no mind am. GEJ is too smart for these corrupt Governors. They want to buy up power stations and loot it dry the way they have ravaged some Niger Delta states. It won't happen.

Selling PHCN from FGN to State governors is like a transit from frying pan to fire. I'm dancing Azonto that they didn't succeed. FRESH AIR!

national cake no reach some people hand ooo ...boiz are not smiling at all

GBAM

Considering the huge investments in IPP already by the affected states,the states have a very strong case.

That aside,the consortium of the states MUST be fully privatised or the BPE/NCP should prevail on Vigeo to strengthen their bid and enhance their capacity as well as have some form of working arrangement with the states' consortium,otherwise bumps bumps ahead

They invested heavily! Then anything to show that. All of them are thieves. Can they fight federal govt. Na lie!

These states have invested largely in power generation and transmission unlike Vigeo who is an untested new entrant. I believe that the state government joint consortium would have been better. I simply don't trust some of these investors

So hapi because its combo of PDP and ACN , so politics apart

Didn't Ibori use Delta State funds to illegally purchase shares in Econet?

Those who are old enough, do you remember Midwest/Bendel State Rural Electricity Board (REB)?

Both State and Federal government should hands off Electricity and any other type of business. If they want to regulate certain standards within usual laws alright, but to block private companies - no way.

All this rubbish about the DISCO being too small, how many teleco customers did GLO have before they started?

take dat: These states have invested largely in power generation and transmission unlike Vigeo who is an untested new entrant. I believe that the state government joint consortium would have been better. I simply don't trust some of these investors

But you trust state governments?

faithin9ja:

But you trust state governments?

I dont trust them completely but it will be foolhardiness for anyone to think they should be completely ignored

dridowu: So hapi because its combo of PDP and ACN , so politics apart

Indeed.

It isn't a party issue.

More state interest vs. federal say

ekt_bear:
Indeed.

It isn't a party issue.

More state interest vs. federal say

We have not heard the last of this sort of thing.Emeka offor's firm has to carry along Eastern electric consortium,so also Abdulsalami's firm will have some form of arrangement with LASG(forget about OANDO power,I'm personally pleased that Tinubu will have no direct benefit from the power privatisation programme he had written off several times)

Talking about 'investing heavily' in the electricity sector in their domains and knowledge of the area, their logic seem to suggest that the FG should continue to own everything since it invested the most and has the most extensive knowledge of the territory and the sector. We can see how 'efficient' power distribution and supply has been in Ekiti, Edo and Delta before GEJ's intervention measures and we can see for ourselves how 'technically qualified' this 3-state consortium is.

Power before now was in the exclusive list of the FG responsibilities. So is the power to sell off such state resources to investors they deem qualified. These states better align more strategically with the named investors instead of this funny talk. It is about providing electricity to the people we are talking about here.

Why won't they,you can begin to see why foreign private investors fear coming to invest in Nigeria,how will a governor come out and say he will not support this privatization process that was done as transparently as it could be,this whole thing is being done for the betterment of the people,we simply do not want Government participation again,let them concentrate on power generation,that is where we need them,what s all these,why won't these people allow us,this is the kind of talk that will begin to try and derail the whole process,but anyway things were done strictly according to the guidelines set,if uduaghan and his fellow governors don't like what just happened let them resign.these governors sef,who do they think they are,demigods.they must give the successful company all the help and logistics they need to take over those facilities,if we hear of any agitation at least we will know who the sponsors are.it's paining them they did not get any piece of the pie,eeyaa people more powerful than them got it all and it is paining them die,chai!!!!!

There was a bidding process and they lost period now they are crying.The problem with our Governors is that they think they are god..The company with a better bid and business plan probably won so they should take a chill pill.All the Governors do anyway is steal money so why should they be giiven a ferr hand to controll the Discos again.I thought the aim of the exercise was to take it away from Govt into private hands.If they dare go ahead with their nonsense it will set a nasty precedence as we in Lagos will demand that MD of FAAN NIMASA and NPA etc must be Yoruba men abi.Iboris boy should be called to order immidieatly .

Frank-C:
Talking about 'investing heavily' in the electricity sector in their domains and knowledge of the area, their logic seem to suggest that the FG should continue to own everything since it invested the most and has the most extensive knowledge of the territory and the sector. We can see how 'efficient' power distribution and supply has been in Ekiti, Edo and Delta before GEJ's intervention measures and we can see for ourselves how 'technically qualified' this 3-state consortium is.

Power before now was in the exclusive list of the FG responsibilities. So is the power to sell off such state resources to investors they deem qualified. These states better align more strategically with the named investors instead of this funny talk. It is about providing electricity to the people we are talking about here.

Your reasoning is so skewed! If you didnt know this before, know it now. States have always invested in rural electrification and to a large extent, power generation, however, the FG has always claimed monopoly over power distribution citing the national grid as her sole prerogative, and largely that is where Nigeria's epileptic power supply problem is.

It will be fool hardy for any state to have invested hugely over the past 10years of massive rural electrification, to then turn around and allow an incompetent company to "take over" without a fight. Least this would end up in a situation where the company ends up in a fight against the people of the land and you know who will prevail.

Aside the Delta governor, I know the other governors know what government is all about and know what is best for their people. Maybe the FG under estimated the role the state governments ought to play in the whole privatization process.

faithin9ja:

But you trust state governments?

Countries like China and co are much into State Capitalism. There is nothing wrong with PPP the problem has always been the Exclusive right the FG hold on energy/power. Several State governments has demonstrated goodwill in investing in power even when the FG arm twisted them. One company should not be 100% in charge of distribution without part ownership of the people of the state.

The governors are right on this one, preference would have been giving to their interests.

After all is said and done, the much maligned GEJ is making sense in the power sector. Things have never been this good and they can only get better.

Tafugo: There was a bidding process and they lost period now they are crying.The problem with our Governors is that they think they are god..The company with a better bid and business plan probably won so they should take a chill pill.All the Governors do anyway is steal money so why should they be giiven a ferr hand to controll the Discos again.I thought the aim of the exercise was to take it away from Govt into private hands.If they dare go ahead with their nonsense it will set a nasty precedence as we in Lagos will demand that MD of FAAN NIMASA and NPA etc must be Yoruba men abi.Iboris boy should be called to order immidieatly .

That was racketeering and not bidding. Emeka Offor is a guy who lacks credibility, how well did he his Chrome manage all the TAM contracts he collected or is it the Kastec gas pipeline fraud. Where did Abdulsalam get his money? Abacha's recovered loot. Gbolade Osibodu is simply a front man .All these guys are worse than the state governors.

karl max: Written by Ayodele Adesanmi, Abuja
Friday, 19 October 2012

BARELY two days after  the  Bureau of Public Enterprises (BPE) opened  the bidding  of the distribution companies under the Power Holding Company of Nigeria (PHCN)  and sold  the Benin  Disco  to Vigeo Power Consortium, the Edo, Ekiti and Delta states governments have protested, saying they would not allow it to operate within their domains.

The states, under the company name Southern Electricity Distribution Company, equally bid but lost to Vigeo which is partly owned by Mr Victor Gbolade Osibodu, a businessman.

The governors of Edo, Ekiti and Delta states, in a joint briefing, said “our states have invested heavily in power generation, transmission and distribution across the length  and breath of our respective state as we recognised the importance of power as the pre-condition for socio-economic growth and industrialisation of our states.”

Delta State governor, Dr Emmanuel Uduaghan,  who spoke on behalf of others, informed that their participation was based on the technical competence and that they had the consortium that is most suited to the peculiarities of their region.

He, therefore, stated that they would never allow Vigeo Power Consortium to operate in their states,  because “you cannot succeed  in operating the utility without the participation of the state governments  on the ground, knowledge and relationships with the different stakeholders such as youths, communities, leadership. Our consortium possesses all these and no other does.”

Governor Uduaghan added: “Why would a company whose current service territory is 500 square kilometre  be technically qualified to operate a 57,000 square kilometre service territory in an area like the Niger Delta Region, without any local knowledge of this troubled area at all?”

He added that the process was fraudulent and not acceptable, saying that for  it to work, the host states need to be involved, adding that “we need to be involved and we are crying to Nigerians.”

http://tribune.com.ng/index.php/front-page-news/49468-power-distribution-we-wont-allow-firm-to-operate-edo-ekiti-delta-govs

These governors are just showcasing their fraudulent tendencies by making such utterances , having interest in companies rather than being focused on their respective states.
Edo , Delta and Ekiti governors won't assist to enhance energy generation , supply and distribution in their various states because southern electricity distribution lost to Vigeo Power Consortium? And the process is now invalid and fraudulent because their interest crashed out? Stupid and selfish governors !