– The millions they are spending on their new ventures
DAYS back, the Federal Government handed over assets of Power Holding Company of Nigeria (PHCN) to private investors long after the bidding process. These private companies backed by billionaire businessmen, retired top military officers will, for the first time in Nigeria’s history, play big in the power sector.
10 distribution companies and five power generating companies were sold to serious bidders at the end of the day.
ENCOMIUM Weekly unveils the forces behind these new power companies.
WEST POWER AND GAS – Three powerful men are behind West Power and Gas, which acquired Eko Distribution Company. They are Dr. Tunji Olowolafe, Mr. Charles Momoh and Mr. Ernest Orji. The company paid $135 million for the Eko Distribution Company, while it is shopping for $259 million for expansion and rehabilitation of the asset it acquired. The company has also recruited world class team of experts to work in the new company.
TRANSCORP/WOODROCK CONSORTIUM – Former Managing Director, UBA Plc, Mr. Tony Elumelu is the force behind Transcorp/Woodrock, the establishment that sought the 972 megawatts Ughelli Power Plant in Delta State. The former banker confirmed recently that $225 million was paid for the take-over of the Ughelli Power Asset. The man of means is investing a lot of money to play big in the new power business under his Heir Holdings.
Vigeo Holdings is not new in the power business. The company has a subsidiary called Global Utilities Management which deals in providing services to improve the efficiency in the electric power sector.
Osibodu plans to invest a lot of money into the newly acquired company in the coming years.
Amperion Power Company Limited is a subsidiary of Forte Oil promoted by billionaire businessman, Mr. Femi Otedola. Presently, Geregu Power Plant, Kogi State, one of the privatized generating companies is now under the control of Amperion Power Limited.
Forte Oil holds 57 per cent of Amperion’s equity while other stakes are being shared by partners, BSG Resources (38 per cent) and the Shanghai Municipal Electric Power Company (five per cent). A total of $135 million was paid to acquire Geregu Poewr Plant in Kogi State.
INTERSTATE ELECTRIC LIMITED – The Enugu Distribution Company is now the property of Interstate Electric Limited, promoted by businessman, Sir Emeka Offor. A sum of $107.4 million was paid by Interstate for the take-over of the Enugu Distribution Company, even though the process was greeted with controversy.
Many are questioning why Interstate should be given the nod ahead of other capable bidders like Eastern Electric sponsored by a consortium of investors which include Geometric Power Limited led by Professor Barth Nnaji, the five South Eastern State governments, Nestoil, Aba Power Limited and Mr. Pascal Dozie, founding chairman of Diamond Bank.
It was also alleged that Dame Patience Jonathan has interest in Interstate but the First Lady has since denied ever having any stake in the company.
MAINSTREAM ENERGY LIMITED – Mainstream Energy Limited promoted by Col. Sam Bello (retd) bought one of the buoyant power plants, The Kainji Power Plc in Lokoja, Kogi State.
The company reportedly paid $216.472 million for the power asset, while turnaround maintenance will gulp a lot of money.
SAHELIAN ENERGY LIMITED – The company is now the owner of Kano Distribution Company. The company, owned by one Alhaji Yusuf, a one-time ministerial nominee of Vice President Namadi Sambo, paid $102 million for the Kano Distribution Company.
INTEGRATED ENERGY DISTRIBUTION AND MARKETING COMPANY – Former Head of State, General Abdulsalami Abubakar sits on the board of Integrated Energy Distribution and Marketing Company. The company successfully took over the running of both Yola and Ibadan Distribution Companies with $171 million.
NORTH SOUTH POWER COMPANY LIMITED – Former military president, General Ibrahim Babangida (retd), is the promoter of North South Poewr Company Limited that acquired The Shiroro Hydro Power Stationb for $101.442 million.
This company is promoted by the South South governors. They took over the Port Harcourt Distribution Company for $93 million.
Other private investors in the electricity business include:
– Anra Energy Jos Distribution Company ($82 million)
– Kanu Consortium Abuja Distribution Company ($123 million)
– NEDC/KEPCO Ikeja Distribution Company ($131 million)
– CMEC.EUAFRIC Energy JV Sapele Hydro Power Station ($30.15 million).
– FOLUSO SAMUEL