The Bureau of Public Enterprises, acting on behalf of the Federal Government, has begun processes for the sale of five power plants under the National Integrated Power Projects.
Despite indications from sources familiar with the matter suggesting that the plants’ value should surpass $5 billion according to international benchmarks, it was disclosed that the BPE intends to market the facilities at around $1.15 billion as revealed on Tuesday.
Ignatius Ayewoh, the acting Director-General of BPE, confirmed that the transaction is currently underway, emphasising that it has not been finalised, according to the report. When asked about the cost of the five plants, Ayewoh, citing an ongoing meeting, declined to disclose the details.
However, reliable sources within the Bureau identified the five Power Plants, comprising the 434 megawatts Geregu II gas-fired plant in Kogi, the 451MW Omotosho II plant in Ondo, the 750MW Olorunshogo II plant in Ogun State, the 563MW Odukpami power plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.
Reports indicate that the Omotosho Plant, equipped with four power-generating turbines, is set to be sold at approximately $85 million, while the Olorunsogo NIPP, also featuring four turbines, carries an estimated cost of $170 million.
The Benin-Ihovbor plant, featuring five power-generating turbines, is priced at $420 million. The Calabar Odukpami Plant, equipped with five turbines, is set to be sold for approximately $260 million, while the Geregu Plant, hosting four turbines, carries a price tag of $215 million.
According to an unnamed source familiar with the matter, these plants utilise Siemens turbines, each capable of generating about 115MW of electricity. The source revealed that constructing a plant capable of generating 1MW of electricity would cost around $1 million. The source emphasised that if the valuation of the five NIPP plants were based on this construction cost, it would exceed $5 billion.
Commenting on the sale of these plants, the Executive Secretary of the Lawyers in Energy Network, Miss Raqeebah Oloko commended the Bureau for this initiative, but enjoined them to follow due process in the sale and ensure that these assets are transferred to only those that have both the financial, technical and moral discipline to work these assets to optimum capacity.