4 successor companies of PHCN to be sold soon
. Four successor companies from the Power Holding Company of Nigeria (PHCN) stable, will be sold by the Bureau of Public Enterprises (BPE) before the end of March.
The BPE Director of Power and Steel, Mr John Agbogun gave the names of the electricity companies to be sold as Abuja, Enugu, Port Harcourt and Ikeja Electricity Distribution Companies.
Agbogun told the News Agency of Nigerian (NAN) in Abuja at the weekend that others to be sold include Egbin, Ijora and Orji thermal plants.
The new Geregu 414mw thermal plant expected to be inaugurated this week by President Olusegun Obasanjo would also be sold.
He said late concession or sale of the 17 companies was due to the period associated with the winding up of government giant and sensitive outfits such as the PHCN, thereby making the process a gradual one.
``At 31st Dec. 2006, the operating license of PHCN expired as a monopolistic body but the process of winding it down is a gradual one, considering the size of the companies, even and after granting interim licenses to its successor companies, a lot of the issues had to be addressed,'' he said.
He added that government would retain its interest in the Transmission Company of Nigeria (TCN) because of its strategic importance but the private sector and even state government could invest in the generation and distribution end of the industry.
``We have opened up the generation and distribution end of the industry, after the 2005 power act was assented to by the president. This was followed by the unbundling of the 18 units of PHCN and setting up of the National Electricity Regulatory Commission (NERC) to serve as the regulatory arm of the sector, ``Already nine companies have been issued licenses by NERC to establish power plants last year, as part of the unbundling of the sector just like it was done in the communication sector preparatory to the sale of the companies,`` the director added.
Agbogun said the federal government had the sole right to invest or own the transmission sector of the electricity saying that any one found engaged in it, was doing so in contravention of the law.
On the demands by the state governments to get re-imbursement for the huge investment in the sector in their various states, he said the demand was receiving attention.
He assured professional staff of the companies not to be worried as the industry was in need of their serves.
NAN gathered that the Federal Capital Development Authority had shown interest on the Abuja Electricity Distribution Company and discussion on it had reached advance stage.
Siemens Nigeria limited, the contractors handling the 414mw Geregu Power Plant might be given the right to run the plant on concession as hinted by the former Minister of Power and Steel, Sen. Liyel Imoke during visit to the plant last year.
Imoke had told energy correspondents after a visit to the plant that the present capacity of the plant would increase to more than 800mw through the combined cycle process.