On February 21, 2013, the Bureau of Public Enterprises, on behalf of the Federal Government of Nigeria, and the 14 Preferred Bidders for 15 of the 17 Companies created out of the Power Holding Company of Nigeria executed Share Sale Agreements and Concession Agreements (Transaction Documents). Preferred bidders will now have 15 days to pay Initial Deposits. The FGN and Preferred Bidders will work together in order to achieve all the necessary steps for the handover of facilities to Investors.
At the same date, Industry Agreements were executed between the Successor Companies and the relevant counter parties including the Gas Aggregation Company of Nigeria, Nigerian Gas Company, Nigerian Bulk Electricity Trader and Transmission Company of Nigeria. The Industry Agreements provide the overall framework for the fully commercialised power sector.
Agreements signed were:
- Share Sale Agreements (Distributiong Companies and Thermal Generation Companies)
- Concession Agreements (Hydro Generation Companies)
- Gas Supply and Aggregation Agreements
- Gas Transportation Agreements
- Power Purchase Agreements
- Vesting Contracts
- Transmission Use of Network System Agreements
- Grid Connection Agreements
- Ancillary Services Agreements
The signing of transaction and industry agreements has been regarded by many as the largest development in the power sector of Nigeria to date and is laying the framework to allow for substantial investments to be made into the Nigerian power sector to increase generation capacity, and expand the capacity of transmission and distribution networks.
The Re-Bid process for the remaining two Successor Companies, Afam Generation Company and Kaduna Distribution Company is currently ongoing. The pre-bid conference for Afam and Kaduna will be held on March 5th in Abuja with bids scheduled to be submitted by April 16, 2013.