PRESIDENT GOODLUCK JONATHAN (R), VP NAMADI SAMBO (2ND R) PRESENTING CERTIFICATES & LICENCES TO MR FEMI OTEDOLA FOR THE PURCHASE OF GEREGU POWER PLC DURING THE FORMAL HANDOVER OF SHARE CERTIFICATES & LICENCES TO NEW CORE OWNERS OF PHCN SUCCESSOR-COMPANIES IN ABUJA. SEPTEMBER 30, 2013
… United States Government Hails Successful Transfer
SAN FRANCISCO, September 30, (THEWILL) – In what has been described as a historic handing over and a milestone in the power sector reform process, President Goodluck Jonathan on Monday, handed over share certificates and licenses to the 14 new owners of the power distribution companies (discos) and generation companies (gencos) which succeeded the Power Holding Company of Nigeria (PHCN).
The generation companies now in the hands of core investors are Geregu, Ughelli, Olorunsogo and Egbin Power plants, as well as Kainji and Shiroro Hydro electric plants while the distribution companies involved are Abuja, Benin, Eko, Ibadan, Ikeja, Jos, Kano, Port Harcourt and Yola.
An elated President Jonathan could not hide his feelings at the occasion as he expressed delight that the process of privatising the power sector has been “adjudged by both local and foreign investors as transparent, well organised, and fair.”
The President said: “For this administration, today’s ceremony is indeed a major step forward in our concerted efforts to ensuring efficiency, competitiveness and best practices in the country’s electricity sector.”
Jonathan recalled how the journey towards the complete privatisation of the power sector began in 1999 when the National Council on Privatisation (NCP) constituted the Electricity Power Sector Implementation Committee, with a mandate to undertake a comprehensive study and review of the entire industry.
He maintained that the success recorded so far in the privatisation of the Gencos and Discos has prompted government to commence the privatisation of the generation assets of the new National Integrated Power Projects (NIPP) of the Niger Delta Power Holding Company of Nigeria (NDPHCN), jointly owned by the Federal, States and Local Governments.
Acknowledging that there have been challenges in the reform process, he said they are being tackled as he listed the payment of PHCN workers’ entitlements as one of such challenges.
“It is important to say to our labour partners, who we know to be patriotic Nigerians, that they should not nurse feeling of displacement, but dwell on the tremendous possibilities that the revitalisation of the sector holds for them and the future,” he said.
Jonathan also restated his administration’s government to providing all elements that are necessary for “our private sector partners to succeed in providing Nigerians with uninterrupted power supply.”
According to Jonathan, “We do not expect the sector to be revitalised overnight but we can look forward to a better time soon as we have seen in the telecommunication and banking sectors.
“To the Nigerian people who have demonstrated such great patience and confidence, putting up often with darkness, noisy power generating sets, the related pollution and the daily disruption in their lives, I say better days are coming.
“Today, we embark on a new journey, a journey that will usher us to a destination of enduring gain and fulfillment.”
Vice President Namadi Sambo, who is the Chairman, National Council on Privatisation, in his remarks, described the formal handing over of the Gencos and Discos as “a new beginning,” saying “it marks another major landmark in the implementation of the transformation agenda.”
He recalled that at the inception of the process, very few people believed that the feat could be accomplished given the risks and efforts that were required.
“Today, I am proud to say that with the support, encouragement, dogged determination and commitment of President Goodluck Jonathan, we were able to pull through to this stage of the process,” he said.
The transfer of ownership to core investors is expected to increase significantly the present 4,000 mega watts being generated.
Meanwhile, the U.S. Chargé d’Affaires in Nigeria, Maria Brewer said Monday that “the United States Government is proud to have contributed to this historic handover of power companies to the private sector and congratulates the Government of Nigeria (GON) on achieving a very important milestone in the liberalization of the power sector.”
The comments were made in response to the Presidential handover of the Licenses and Share Certificates to the new owners of the PHCN successor generation and distribution companies. The ceremony marks the beginning of the transition period in which the new owners will work with the existing management of the successor companies to ensure a successful takeover and represents one of the first Power Africa successes.
Power Africa, a new U.S. Presidential Initiative to double access to power in sub-Saharan Africa, has supported this transfer of assets from the public to private sector. U.S. President Barack Obama, through Power Africa has committed to providing seven billion dollars over the next five years to support six African countries, including Nigeria. USAID Mission Director Michael Harvey said “the U.S. will continue to partner with Nigeria to advance a seamless transition from public to private sector management of the power sector to ensure that the Nigerian people have access to electricity.”
The U.S. supports today’s achievement and encourages the GON to sustain progress in the sector by addressing such critical needs as adequate transmission, gas availability, and a cost reflective tariff. Power Africa brings to bear a wide range of U.S. tools to support investment in Africa’s energy sector, including policy and regulatory best practices, pre-feasibility support, capacity building, long-term financing, political insurance, guarantees, credit enhancements and technical assistance. Power Africa also provides coordinated support to help African partners expand their energy generation, transmission, and distribution capacity and access.
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