Take a fresh look at your lifestyle.

FG To Sell Geregu, Omotosho, Calabar Power Plants At N434bn


Federal government has resolved to sell Geregu, Omotosho and Calabar power plants at N434 billion in 2021 and also planned to concession National Art Theatre, Tafawa Balewa Square and all the River Basin Development Authorities at N836 million.

The National Stadium, Lagos, Moshood Abiola Stadium, Abuja, Jos International Stadium and Adokiye Amiesimaka stadium in Port Harcourt at N100 million will be conscessioned in 2021

These developments were contained in a document presented by the Bureau of Public Enterprises to the Senate during budget defence in Abuja.

According to the breakdown, Geregu power plant, which it was learnt was contructed at the cost $10 billion, would be sold for N140.7 billion, Omotosho Power Plant will go for M151.4 billion and Calabar to be sold for N143.4 billion.

The proceed of the three power plants will 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 the BPE is expected to appear before Senate Committee on Privatization and Commercialization to throw more light 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 N13billion.

“Afam Power Plant it was mentioned that there are actually two (2) different Power Plants i.e Afam Power Plant and Afam fast power (a brand new plant) built by Seimen yet to be commissioned. Reports have it that it cost about $1million USD to build a Megawatt of Power Plant a megawatt of power plant.”

Comments are closed.