BPE to sell three power plants for N434b, concession four stadia for N100m

The Bureau of Public Enterprises has resolved to sell Geregu, Omotosho and Calabar power plants at N434 billion in 2021.

The decisions of the BPE were contained in a document presented to the Senate Committee on Privatisation and Commercialisation, chaired by Senator Theodore Orji, during the Bureau’s 2021 Budget defence in Abuja.

The Bureau also plans to concession National Arts Theatre, Tafawa Balewa Square and all the River Basin Development Authorities at N836 million.

Also to be concessioned are the National Stadium, Lagos; Moshood Abiola Stadium, Abuja; Jos International Stadium; and Adokiye Amiesimaka Stadium in Port Harcourt at N100 million.

According to the breakdown, Geregu power plant, which it was learnt was constructed at the cost $10 billion, would be sold for N140.7 billion; Omotosho Power Plant will go for N151.4 billion; and Calabar to be sold for N143.4 billion.

The proceed of the three power plants will be paid into the Niger Delta Power Holding Company coffers.

While the National Art Theatre will be concessioned for N200 million, Tafawa Balewa Square will go for N436 million and all the River Basin Development Authorities for N200 million.

However, the the BPE is expected to appear before Senate Committee on Privatisation and Commercialisation to throw more light on the details and its revenue projection in 2021, which consists of sale of power plants and concession of government-owned properties.

The Committee has also demanded an investigation into the sale of some of the Federal Government’s shares in Afam and Geregu power plants to ensure that the country was not shortchanged in the transaction.

The committee has also asked the Director General of BPE, Alex Okoh, to provide members of the Senate Committee with copies of the agreements, reports and approvals from the National Council on Privatisation 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 per cent shares and that the transaction emanated from a request by the investor for additional 29 per cent of FGN residual 49 per cent 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, that is 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 $1 million to build a megawatt of power plant.”