FG To Sell Three Power Plants For N434 Billion

The Federal Government has revealed that it was making arrangement to sell Geregu, Omotosho and Calabar power plants for N434 billion in 2021.

The government also hinted of its plan to concession National Art Theatre, Tafawa Balewa Square and all the River Basin Development Authorities at N836 million.

Similarly, the federal authorities said that it would concession the National Stadium, Lagos; Moshoo Abiola Stadium, Abuja; Jos International Stadium and Adokiye Amiesimaka Stadium in Port Harcourt at N100 million each.

These proposals were contained in a document presented by the Bureau of Public Enterprises (BPE), to the Senate during a budget defence session in Abuja. According to the breakdown, Geregu power plant, which it was learnt was constructed at the cost of $10 billion, would be sold for N140.7 billion, Omotosho Power Plant will go for N151.4 billion and Calabar Power Plant to be sold for N143.4 billion.

The document further revealed that the proceeds of the three power plants would be paid into Niger Delta Power Holding Company (NDPHC). Also, while the National Art Theatre will be concessioned for N200 million, Tafawa Balewa Square will be concessioned for N436 million and all the River Basin Development Authorities will go for N200 million.

However, the BPE is expected to appear before the Senate Committee on Privatization and Commercialization to elucidate on the details and its revenue projection in 2021, which consists of sales of power plants and concession of government-owned properties.

The committee, which is chaired by Senator Theodore Orji, has also demanded an investigation into the sale of some of the Federal Government’s shares in the Afam and Geregu Power Plants to ensure that the country is not short-changed in the transaction.

The committee has also asked the Director General of BPE, Alex Okoh, to provide members with copies of the agreements, reports and approvals from the National Council on Privatization over the transactions of the Afam and Geregu power plants for review.

Orji said: “We also found that in Geregu Power Plant, the core investor already owned 51% shares and that the transaction emanated from a request by the investor for additional 29% of FGN residual 49% shares.

“There was no competition and only BPE and their appointed transaction advisers know how the value was determined and sold for N13 billion. “Afam Power Plant, it was mentioned that there are actually two different Power Plants i.e. Afam Power Plant and Afam Fast Power (a brand new plant) built by Seimens yet to be commissioned. Reports have it that it cost about $1 million to build a megawatt of power plant a megawatt of power plant.” Geregu Generation Company Limited is located in Ajaokuta, Kogi State.

The Geregu Power Plant has a unique configuration of three gas turbines (Siemens V94.2 Gas Turbines) with capacity of 506.1 MW (ISO) and 434MW (Net). Omotosho Generation Company Limited is located in Okitipupa, Ondo State. The plant has a configuration of four gas turbines (GE Frame 9E Gas Turbines) with 512.8 MW (ISO) and 451MW (Net) capacity.

The Calabar Generation Company Limited, located in Calabar, Cross River State is five gas turbines (GE Frame 9E Gas Turbines) with 634.5MW (ISO) and 562MW (Net) capacity.