PANAPRESS
Panafrican News Agency
Power sector handover to new owners highlighted in Nigeria
Lagos, Nigeria (PANA) - The handover of electricity supply and distribution to core investors and new owners was the major story in Nigeria this week.
The ceremony took place in 10 different venues simultaneously across the country where other facilities of the Power Holding Company of Nigeria (PHCN) were handed over to core and new owners.
The VANGUARD, reporting from Port Harcourt under the headline "VP hands over electricity distribution to private investor", said the Federal Government on Friday handed over electricity supply to 4Power Consortium Ltd., owners of the Port Harcourt Distribution Company (PHED), in line with its power sector reform.
It said that the Vice President and Chairman of the National Council on Privatization, Alhaji Namadi Sambo, handed over certificates to the company in Port Harcourt, capital of the South South Rivers State.
Sambo, represented by Dr. Godknows Igali, the Permanent Secretary in the Federal Ministry of Power, said that the handover held simultaneously across the nation, drew to a conclusion the power reform which began in 1999.
He said that the exercise was a culmination of 14 years of painstaking efforts to liberalise the nation’s electricity sector to attain desired economic growth.
“The power sector reform, which began in 1999, continued with the enactment of the Electricity Power Sector Reform Act of 2005, which gave rise to the creation of 18 successor companies.
“The 18 companies from the unbundled PHCN are six for Generation, 11 for Distribution, and one for Transmission.
“The private sector involvement became necessary in order to chart a new course for a sector that had delivered far below minimum expectations of Nigerians, he said, adding “The participation of the private sector will bring about more efficient and cost effective power supply, engender private sector investment, improve infrastructure, and create employment for Nigerians."
“The challenges facing the electricity sector in Nigeria are enormous; but we are equally convinced that the opportunities in the sector are enormous," Sambo disclosed, pledging that “The Federal Government is committed to creating an enabling environment that will enable these companies provide quality and cost effective service delivery to the Nigerian electricity consumers.”
Sambo said that President Goodluck Jonathan was committed in taking Nigeria out of its “perennial darkness’’ within the shortest possible time.
He said that the Federal Government would through the Nigerian Electricity Regulatory Commission (NERC), and the Bureau of Public Enterprises (BPE), monitor the operations of the companies.
Sambo warned that companies which failed to deliver on performance as agreed with the Federal Government, would be severely sanctioned.
The Chairman of 4Power Consortium, Mr. Augustine Wokocha, gave the assurance that the company would provide stable electricity supply to customers, whom he asked to support the company in its bid to provide uninterrupted power supply to about 14 million people living in the zone.
The Port Harcourt Distribution Company (PHED) zone covers four states comprising Bayelsa, Akwa Ibom, Cross Rivers and Rivers states.
The NIGERIAN PILOT headlined its story "Finally, FG hands over PHCN to private sector", with the rider '…pays N360bn to workers'.
It quoted the Minister of Power, Prof Chinedu Nebo, as saying that the federal government had paid out 360 billion Naira (about US$ 2.4 billion) to the Power Holding Company of Nigeria (PHCN) workforce in continuation of reforms and privatization going on in the power sector.
He stated this on Friday during the official physical handover ceremony of the Abuja Electricity Distribution Company, AEDC’s assets, to the new investors, KANN Utility Consortium, Nig Ltd.
Performing the ceremonial handover in Abuja, the Chairman of the National Council on Privatization, Vice President Namadi Sambo, represented by Nebo, said the handover marked the concluding stage of the transaction for the generation companies and 10 distribution companies.
He said the participation of the private sector would bring about higher generation capacities through the provision of more efficient and cost effective power stations and improvements in electric power distribution in the areas of billing, collection and transmission networks.
According to him, “the reform is a necessary tool for laying a solid foundation for sustainable power and service efficiency in the sector. The privatization of the sector is a key component of the reform and is one of the pre-conditions for the start-up of a competitive electricity market in Nigeria”.
Sambo added that the reform and privatization programme were focused on the big picture, that is, the impact on the economy as a whole and ultimately, the greatest good of Nigerians.
The Managing Director, AEDC, A. G. Umar, said that opening up the power sector would do the country a lot of good.
He said: “We all know that power is the engine room of development as virtually every sector depends on it. The giant strides of the government will lead to rapid socio-economic transformation of the country and also impact on its GDP.”
The company covers the FCT, Nasarawa, Niger and Kogi states.
"For Power Sector, It's A New Dawn", screamed THISDAY newspaper on Saturday, with the riders 'New owners take over operations of Gencos, Discos', and 'FG: sustainable electricity now rests on new managers.'
It said a major milestone was achieved on Friday in the nation's bid to reposition the power sector for stable electricity supply with the hand over of operations of the privatised generation and distribution companies to their new owners.
At Friday's events, four power generation companies; Ughelli Plant, Geregu I Plant, Kainji Hydro and Shiroro Hydro, and ten distribution companies, namely, Ikeja, Eko, Ibadan, Jos, Kano, Yola, Abuja, Benin, Enugu and Port Harcourt, from the now extinct Power Holding Company of Nigeria (PHCN), were handed over to their owners - who had cumulatively paid about US$ 3 billion (about 480 billion naira) in August.
The NATION , with the headline "40,093 PHCN workers get N292b handshake", reported that the government had paid 40,093 workers of the fading firm N292.51 billion as severance package.
The Permanent Secretary in the Ministry of Power, Godknows Igali, told reporters at the State House after a meeting with Vice President Namadi Sambo that the cash comprised N214.22 billion for severance and N80.290 billion for pension.
Igali said of the 47,913 PHCN workers who were identified after validation, regularisation and cross-checking, the payment of only 5,907 workers was being delayed due to lack of biometric data records and duplications.
“In total, 47,913 PHCN workers were identified in the process of validation, regularisation, and cross-checking of workers. As you know, this process has to be done because PHCN is a very large organisation and had workers in all parts of this country.”
-0- PANA VAO/MA 2Nov2013
The ceremony took place in 10 different venues simultaneously across the country where other facilities of the Power Holding Company of Nigeria (PHCN) were handed over to core and new owners.
The VANGUARD, reporting from Port Harcourt under the headline "VP hands over electricity distribution to private investor", said the Federal Government on Friday handed over electricity supply to 4Power Consortium Ltd., owners of the Port Harcourt Distribution Company (PHED), in line with its power sector reform.
It said that the Vice President and Chairman of the National Council on Privatization, Alhaji Namadi Sambo, handed over certificates to the company in Port Harcourt, capital of the South South Rivers State.
Sambo, represented by Dr. Godknows Igali, the Permanent Secretary in the Federal Ministry of Power, said that the handover held simultaneously across the nation, drew to a conclusion the power reform which began in 1999.
He said that the exercise was a culmination of 14 years of painstaking efforts to liberalise the nation’s electricity sector to attain desired economic growth.
“The power sector reform, which began in 1999, continued with the enactment of the Electricity Power Sector Reform Act of 2005, which gave rise to the creation of 18 successor companies.
“The 18 companies from the unbundled PHCN are six for Generation, 11 for Distribution, and one for Transmission.
“The private sector involvement became necessary in order to chart a new course for a sector that had delivered far below minimum expectations of Nigerians, he said, adding “The participation of the private sector will bring about more efficient and cost effective power supply, engender private sector investment, improve infrastructure, and create employment for Nigerians."
“The challenges facing the electricity sector in Nigeria are enormous; but we are equally convinced that the opportunities in the sector are enormous," Sambo disclosed, pledging that “The Federal Government is committed to creating an enabling environment that will enable these companies provide quality and cost effective service delivery to the Nigerian electricity consumers.”
Sambo said that President Goodluck Jonathan was committed in taking Nigeria out of its “perennial darkness’’ within the shortest possible time.
He said that the Federal Government would through the Nigerian Electricity Regulatory Commission (NERC), and the Bureau of Public Enterprises (BPE), monitor the operations of the companies.
Sambo warned that companies which failed to deliver on performance as agreed with the Federal Government, would be severely sanctioned.
The Chairman of 4Power Consortium, Mr. Augustine Wokocha, gave the assurance that the company would provide stable electricity supply to customers, whom he asked to support the company in its bid to provide uninterrupted power supply to about 14 million people living in the zone.
The Port Harcourt Distribution Company (PHED) zone covers four states comprising Bayelsa, Akwa Ibom, Cross Rivers and Rivers states.
The NIGERIAN PILOT headlined its story "Finally, FG hands over PHCN to private sector", with the rider '…pays N360bn to workers'.
It quoted the Minister of Power, Prof Chinedu Nebo, as saying that the federal government had paid out 360 billion Naira (about US$ 2.4 billion) to the Power Holding Company of Nigeria (PHCN) workforce in continuation of reforms and privatization going on in the power sector.
He stated this on Friday during the official physical handover ceremony of the Abuja Electricity Distribution Company, AEDC’s assets, to the new investors, KANN Utility Consortium, Nig Ltd.
Performing the ceremonial handover in Abuja, the Chairman of the National Council on Privatization, Vice President Namadi Sambo, represented by Nebo, said the handover marked the concluding stage of the transaction for the generation companies and 10 distribution companies.
He said the participation of the private sector would bring about higher generation capacities through the provision of more efficient and cost effective power stations and improvements in electric power distribution in the areas of billing, collection and transmission networks.
According to him, “the reform is a necessary tool for laying a solid foundation for sustainable power and service efficiency in the sector. The privatization of the sector is a key component of the reform and is one of the pre-conditions for the start-up of a competitive electricity market in Nigeria”.
Sambo added that the reform and privatization programme were focused on the big picture, that is, the impact on the economy as a whole and ultimately, the greatest good of Nigerians.
The Managing Director, AEDC, A. G. Umar, said that opening up the power sector would do the country a lot of good.
He said: “We all know that power is the engine room of development as virtually every sector depends on it. The giant strides of the government will lead to rapid socio-economic transformation of the country and also impact on its GDP.”
The company covers the FCT, Nasarawa, Niger and Kogi states.
"For Power Sector, It's A New Dawn", screamed THISDAY newspaper on Saturday, with the riders 'New owners take over operations of Gencos, Discos', and 'FG: sustainable electricity now rests on new managers.'
It said a major milestone was achieved on Friday in the nation's bid to reposition the power sector for stable electricity supply with the hand over of operations of the privatised generation and distribution companies to their new owners.
At Friday's events, four power generation companies; Ughelli Plant, Geregu I Plant, Kainji Hydro and Shiroro Hydro, and ten distribution companies, namely, Ikeja, Eko, Ibadan, Jos, Kano, Yola, Abuja, Benin, Enugu and Port Harcourt, from the now extinct Power Holding Company of Nigeria (PHCN), were handed over to their owners - who had cumulatively paid about US$ 3 billion (about 480 billion naira) in August.
The NATION , with the headline "40,093 PHCN workers get N292b handshake", reported that the government had paid 40,093 workers of the fading firm N292.51 billion as severance package.
The Permanent Secretary in the Ministry of Power, Godknows Igali, told reporters at the State House after a meeting with Vice President Namadi Sambo that the cash comprised N214.22 billion for severance and N80.290 billion for pension.
Igali said of the 47,913 PHCN workers who were identified after validation, regularisation and cross-checking, the payment of only 5,907 workers was being delayed due to lack of biometric data records and duplications.
“In total, 47,913 PHCN workers were identified in the process of validation, regularisation, and cross-checking of workers. As you know, this process has to be done because PHCN is a very large organisation and had workers in all parts of this country.”
-0- PANA VAO/MA 2Nov2013
