FG to sell five power plants for $1bn

The Federal Government through the Bureau of Public Enterprises is currently selling five power plants under the National Integrated Power Projects at a cost of about $1.15bn.

Although sources familiar with the development explained that the cost of the plants should exceed $5bn based on international benchmarks, they revealed that the BPE was planning to sell the facilities at a price that is a little above $1.1bn

The acting Director-General, of BPE, Ignatius Ayewoh, confirmed to our correspondent in a brief telephone conversation that “the transaction is ongoing,” adding that “it is not concluded.”

The BPE boss did not disclose the cost for the five plants, as he quickly stated that he was in a meeting and would not be able to give additional details.

However, impeccable sources at the bureau named the five power plants to include the 434 megawatts gas-fired Geregu II power plant, located in Kogi; the 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.

Others include the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.

It was gathered that the Omotosho plant, which has four power-generating turbines, would be sold at about $85m; while the Olorunsogo NIPP with also four turbines would cost $170m.

The Benin-Ihovbor plant with five power-generating turbines would go for $420m; the Calabar Odukpami plant with five turbines would be sold at about $260m; while the Geregu plant with four turbines would go for $215m.

“These are Siemens turbines and each of the turbines can generate about 115MW of electricity,” one of the sources, who pleaded not to be named due to lack of authorisation, stated.

The official went ahead to explain that it would cost about $1m to construct a plant that could generate 1MW of electricity, stressing that if the five NIPP plants were valued on this basis, they would cost more than $5bn.



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