We can’t conclude PHCN workers’ payment by August 21 – Nebo

 

…As DISCOs urge FG to resolve labour issues

From DENNIS MERNYI, AbujaThe Minister of Power Professor Chinedu Nebo disclosed that government cannot settle all entitlements owed former workers of the Power Holdings Company of Nigeria (PHCN) before the final date of 21st August, 2013 earlier announced.

He stated that though, government has commenced payment of the workers entitlements and settlement of other labour issues involved, it will be impossible for it to complete the payment by next week, citing difficulties with the labour unions in reaching certain conclusions.

The minister stated in Abuja Tuesday at the DISCO Roundtable meeting with the preferred bidders of the 11 distribution companies has already put the government and the DISCOs on collision part as the companies urged government to finalize its obligations to the PHCN employers on 21st August to enable them draw down on funds from their lenders who are expecting evidence of the payment and settlement of the workers by government.

 

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Fresh fear over electricity privatisation

 

• New owners give terms for payment

• Tax holiday, shift in date top demands

• Lenders not willing to fund projects

• $1.6b from sale of 10 NIPP plants goes to TCN

ABOUT one week to the August 21 deadline for the new owners of the nation’s electricity distribution companies to make their 75 per cent balance payment for the utilities, there is fresh fear that all may not be well, after all.

Indeed, the new owners Tuesday gave strong indications that the date would not be possible, urging government to consider a further shift.

That is not all. The private investors have decried the attitude of lenders who are no longer able to guarantee them funds as previously agreed due to lingering issues of labour. They have, therefore, given government a litany of conditions to put the privatisation process back on course.

Under the auspices of Disco Roundtable, the new owners stressed the need for government to recognise the electricity sector as an infant industry worthy of nurturing and consider giving them a tax holiday of five to 10 years.

Speaking on behalf of the group, former Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Ransome Owan, asked government to conclude all labour issues and meet all conditions before August 21; release subsidy fund contained in the Multi-Year Tariff Order (MYTO) model for each of the distribution companies under new owners; fund the Transmission Company of Nigeria (TCN) adequately; issue an extended five to 10 years special tax holiday for electricity distribution akin to the telecoms start-up assistance to mitigate tariff increase and high cost; and extend the longstop date to September 21, 2013 to allow for the full satisfaction of all conditions by government.

He went on: “It is a condition precedent (CP) that the Discos would be handed over free from all legacy liabilities. Our lenders are mindful of this and are reluctant to approve loans and condition drawdown. Therefore, it is vital for full payment obligations to the current PHCN employees to be finalised by the longstop date of August 21, 2013. Lenders expect evidence of these payments before we can draw down on funds to complete our payments.

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Power privatization: Banks unwilling to release fund, says new owners

 

 

Banks in the country are unwilling to lend funds to the preferred bidders of the 11 privatized Electricity Distribution Companies due to uncertainty associated with the settlement of entitlements of former Power Holding Company of Nigeria (PHCN) workers.

The owners of the DISCOs, who made their plight known to the minister of power in Abuja yesterday, urged the federal government to complete the Condition Precedent (CP) of the privatization process, and extend the Long Stop Date to September 21.
Chairman of the Distribution Companies (DISCO) Roundtable, Dr. Ransome Owan, at a meeting with the Minister of Power, Prof. Chinedu Nebo, said, “We pray the minister to conclude all labour issues and meet all CPs before August 21st.”

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Power firm bidders may not meet payment deadline

 

The hope of an early completion of the privatisation of the power sector is being threatened by the inability of the Federal Government to settle all outstanding labour issues at the Power Holding Company of Nigeria and the subsidiary companies unbundled from the utility firm.

The preferred bidders of the 10 electricity distribution companies slated for privatisation on Tuesday demanded that the Federal Government must complete the payment of the severance benefits of the workers of the PHCN before August 21.

Speaking under the aegis of the Roundtable of Distribution Companies, a trade association formed by the successful bidders, they said they might not pay the outstanding 75 per cent of the bid sums for the Discos before the August 21 deadline if outstanding labour liabilities were not cleared.

However, the Federal Government has said it is not feasible for it to clear the N400bn entitlement of the PHCN workers before the stipulated date.

 

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PHCN investors give condition for 75% outstanding payment

 

The Roundtable of Electricity Distribution Companies (Discos) yesterday urged the Federal Government to complete the payment of the Power Holding Company (PHCN) severance package for disengaged staff before the August 21, 2013 date set for the completion of payment from the investors.

Following the National Council on Privatisation (NCP) dateline for the privatisation of the Discos, the investors are expected to pay the balance of 75 per cent for the purchase of the entity on August 21.

But the Disco Roundtable, yesterday told the Minister of Power, Prof. Chinedu Nebo that lenders are insisting on verifying the evidence of the payments before lending them fund to complete the outstanding 75 per cent payment.

Chairman of the Roundtable, Dr. Ransome Owan, said: “It is a condition precedent that the Discos would be handed over free from all legacy liabilities. Our lenders are mindful of this and are reluctant to approve loans and condition draw down. Therefore, it is vital that full payment obligations to PHCN employees be finalised before the Long Stop Date of August 21, 2013. Lenders expect evidence of these payments before we can draw down on funds to complete our payments.”

 

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Power Privatisation: Investors Give Tough Conditions To Balance Bid Payment

 

Preferred bidders for the 10 privatised distribution companies (Discos) yesterday gave the federal government tough conditions which must be met before they can pay the balance 75 per cent bid prices. The investors had already made an initial 25 per cent part payment for the companies and are expected to make the final payment on August 21, 2013 before taking over the utilities in September, the Ministry of Power said. This position however conflicts with the Bureau of Public Enterprises (BPE) timeline, which indicates that deadline for the payment of the 75 balance expires on September 21, 2013. Recall that BPE Director General, Benjamin Dikki had recently said deadline for payment of the balance is September 21. 

 

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Power: Bidders for Discos Seek Extension of Payment Deadline

 

Minister of Power, Prof. Chinedu Nebo
•Nebo advises investors to pay up TCN to get $1.6bn from proceeds of NIPPs
Chineme Okafor

The preferred bidders of the 10 distribution companies (Disco) carved out from the unbundling of the Power Holding Company of Nigeria PHCN (PHCN) Tuesday stated that unless the federal government met their conditions they might not be able to pay the outstanding 75 per cent bid price and take over the distribution assets.

The bidders also requested an extension to the payment deadline just about two weeks before the expiration of the deadline set by the National Council on Privatisation (NCP) for the payment of the outstanding balance.

But the Minister of Power, Prof. Chinedu Nebo, has said government would only make realistic adjustments that are consistent with its PHCN privatisation timelines, reminding the bidders that adjustments had initially been made necessitating changes in the deadline for...

 

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Electricity drop: Nigerians groan as FG fixes gas pipeline leakage

 

Nigerians have cried out over epileptic power supply at the weekend as power generation in the country dropped to 2,628 mega watts.

Over the weekend, Minister of Power, Prof. Chinedu Nebo, announced the drop in the electricity generation to 2628 mega watts from over 3500mw as a result of leakage in pipelines that supply gas to three major power plants in the eastern part of the country.
The affected power stations which include Afam IV, Afam VI, and Rivers Independent Power Plant (IPP), all shut down over the weekend due to gas constraints arising from condensate issue on Trans National Pipeline (TNP).
A total generation loss from the stations was put at 624MW, while 89MW was lost following the breakdown of the Olorunsogo power station, arising from low gas pressure.
A L01agos resident, Mr. Okey Onyeka of Civil Rights Concern who spoke to our correspondent, said power drop in Nigeria poses a challenge to Nigerians and is hindering the electricity sector reforms.

 

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Power sector sabotage, politically-motivated madness -Suswam, Nebo

 

GOVERNOR Gabriel Suswam of Benue State has blamed the constant vandalism of pipelines carrying gas to the nation’s electricity gas plants on political motivation and “madness” which he said has brought untold hardship to innocent Nigerians.

Briefing State House correspondents after a joint meeting of the Board of the Niger Delta Power Holding Company and National Council on Privatization (NCP) presided over by Vice President Namadi Sambo in Abuja on Monday, he observed that the action of the saboteurs could only hurt Nigerians rather than President Goodluck Jonathan who seems to be the target.

Noting that people hide under all kind of reasons to perpetrate sabotage, he added: “The huge effort being expended by government to make sure that Nigerians enjoy constant supply of electricity is being sabotaged by unknown individuals and their motivation is actually not known to anybody except to say that these are acts of madness, if I will call it that.

“Otherwise, any reasonable person will rejoice and make sure that the things that are given to Nigerians should be protected by all Nigerians.

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Mass sack imminent, as new owners take over PHCN

 

By Adeola Yusuf/Lagos

The sack of over 20,000 or 37 per cent of the estimated 54,000 workers of the Power Holding Company of Nigeria (PHCN) became imminent at the weekend, as the Federal Government insisted that it would hand over the company to new owners on September 21, 2013.

Director-General of the Bureau of Public Enterprises, PBE, Benjamin Dikki who disclosed this to newsmen at the weekend maintained the only impediment to the hand over is failure of investors to pay on schedule.

Realizing that the new owners may not need so many staff with investment in ultramodern equipment, government, last week began paying severance package to all workers, who would thereafter negotiate fresh contract with the new core investors.

“Labour issues have been resolved and the implementation committee on settlement of the PHCN staff terminal benefits commenced payment of N118 billion to the over 20,000 PHCN staff, at the beginning of this month,” Dikki said.

Meanwhile, investigation by **Daily Independent** showed that many of the staff have begun intensive lobbying of the new owners to either retain their positions or get a new plum job with the new companies.

 

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PHCN privatisation: Stakeholders express doubt over new handing over date

 

 

STAKEHOLDERS in the power sector have expressed concerns over the continued shifting of the handing over date of the Power Holding Company of Nigeria (PHCN) successor companies to the new investors. This is coming against the backdrop of the confirmation that they have fulfilled their own part of the deal.

According to the revised power roadmap, privatisation was supposed to have been concluded in June, 2013, following an upward review of electricity tariffs in accordance with the Multi-Year Tariff Order (MYTO) II.

The MYTO II was primarily designed to ensure that the electricity tariff being inherited by new investors would be cost-reflective. Some consumers have complained that they are currently paying more even when power output has remained epileptic in the past few months.

Lastweek, the Director General, Bureau of Public Enterprises (BPE), Benjamin Dikki stated that the Federal Government would hand over the privatised successor companies of the PHCN to private investors on September 21, 2013, if they pay their money as scheduled. He disclosed that the PHCN privatization was expected to earn the Federal Government about $2 billion.

 

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Ajaero: FG Has No Concrete Agenda for PHCN Privatisation

Joe Ajaero

General Secretary of National Union of Electricity Employees (NUEE), Joe Ajaero, in an encounter with Linda Eroke, says a nationwide industrial action has become imminent in view of the unresolved labour issues in the power sector. He also opined that government did not factor in the cost implications of the privatisation of the Power Holding Company of Nigeria (PHCN) before embarking on the reform process. Excerpts:

Joe Ajaero is the General Secretary of National Union of Electricity Employees (NUEE) and a Deputy President of the Nigeria Labour Congress (NLC).

The story of NUEE is incomplete without the immense contributions of the union’s spokesman who faithfully represented workers especially in the negotiation with the federal government ahead of the privatisation of the Power Holding Company of Nigeria (PHCN).

Through dedication and the unparallel commitment of Ajaero, the union survived several upheavals and became the authentic voice of the workers in the electricity sector. Despite his achievements, the labour activist said, “the struggle continues as there are so many more battles to be won”.

In this interview, he bears his mind on the current challenges militating against the reforms in the power sector. According to him, “the agreements reached between federal government and the unions in the sector took effect from June 2012 but due to government’s inability to implement these agreements between June 2012 and July 2013, we are going to have a showdown with government soon”.

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FG Reiterates Importance of Power Reforms to Vision 20:2020

 

Minister of Power, Prof. Chinedu Nebo

Chineme Okafor

The federal government has restated that the power sector reform through its liberalisation policy remains sacrosanct to the achievement of the economic growth plans embedded in Nigeria’s Vision 20:2020.

It explained that within the liberalisation efforts, the role of Independent Power Projects (IPPs) is enormously significant and will not be toyed with considering the expected ratio of competition that will help turnaround the country’s power sector within time, thus, providing the practical platform to achieve objectives in the long-term economic plan.

Minister of Power, Prof. Chinedu Nebo, said recently in Abuja at a forum organised by German power firm, Siemens, that: “Achieving Vision 2020 depends on a robust power sector and IPPs are indeed the answers to our quest to grow our power generation capacity.”

Nebo also explained that government’s commencement of payment of agreed severance benefits of retiring workers of the defunct Power Holding Company of Nigeria (PHCN) signified that the privatisation process was coasting home. He added that government has continued to intensify efforts in attracting private sector led investments into the power sector as the only way to close up

 

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Expect Power Supply Boom By September Ending – Presidency | Another empty promise?

presidency on Sunday applauded NOI polls, Nigeria’s leading opinion poll and research organisation over the governance polls it released recently in which about 53 per cent of Nigerian rated President Goodluck Jonathan’s performance high especially on power, saying Nigerians should expect more power supply at the end of next month and uninterrupted power supply by the end of 2014.

The summary of the survey carried out by the organisation for the month of July 2013 had indicated that 53 percent of Nigerians sampled in the exercise were satisfied with the President’s performance,with majority of respondents attributing the high approval rating to improvement in power supply across the country.

To this effect, the presidency said Nigerians should expect a boom in power supply by September ending.

 

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NERC, TCN on collision course over electricity allocation

 

• Gas scarcity reduces power supply to 2628 MWs

AN ALLEGED indiscriminate allocation of electricity in flagrant disregard for existing regulations may have set the Nigerian Electricity Regulatory Commission (NERC) and the Transmission Company of Nigeria (TCN) on the warpath.

The NERC may have accused the TCN of flouting regulations on load allocation, resulting in poor electricity supply to some consumers. Key areas affected, according to sources, are Yola and Kano.

A mid-year report from the NERC obtained by The Guardian noted that Abuja Distribution Company got 10.0 megawatts (MWs) instead of 11.5MWs as stipulated by Multi-Year Tariff Order (MYTO). Benin got 10.7MWs instead of 9.0MWs. Eko got 10.8MWs instead of 11.0MWs. Enugu got 10.8MWs instead of 9.0MWs. The zone got higher than what is stipulated for it. Ibadan also got higher. Ibadan got 13.7MWs instead of 13.0MWs. Ikeja got 14.3MWs instead of 15.0MWs. Jos got 4.6MWs instead of 5.5MWs. Kaduna got 6.6MWs instead of 8.0MWs.

Kano got 3.7MWs instead of 8.0MWs. Port Harcourt got 6.5MWs, the load originally allocated to it. Yola Distribution Company got 1.6MWs instead of 3.5MWs as stipulated by MYTO.

 

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Power Reform: Big Project… Tough Debate

 

We Are Paying Off Electricity Workers Already — Govt

IT would seem that government, on behalf of many Nigerians, including the investors who believe in the current privatisation efforts, are winning the battle, pushing past “age-long” hurdles in an ambitious countdown to the sale of the power plants.

Power assets that have been successfully sold by the BPE include 10 distribution companies (Ikeja, Eko, Enugu, Port Harcourt, Ibadan, Yola, Jos, Abuja, Benin and Kano) and five power generation companies (Shiroro hydro plant, Ughelli Thermal Plant, Sapele Power Plant, Kainji Hydro Plant and Geregu Power Plant). The Afam Generating Plant and the Kaduna Distribution Company are yet to be sold.

At least, $2.6 billion (about N408 billion, going by conservative estimates), according to the Bureau of Public Enterprises (BPE), will hit the national coffers by the time the exercise is successfully concluded; that will amount to some N408 billion going by conservative estimates.

   

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Gunmen Kill PHCN Worker In Lagos

 

Unknown gunmen shot and killed a worker with the Odogunyan Undertaken Office of the Power Holding Company of Nigeria (PHCN), identified as Samson Onabanjo (34) on Thursday night. Colleagues of the deceased who spoke to LEADERSHIP Sunday within the compound of the PHCN facility said Onabanjo was shot at pointblank at a popular Ile-Epo Oba Bus stop along the Lagos-Shagamu road while waiting to commute back home after the day’s duty. Though no motive have been ascribed to the killing but the Divisional Police Officer for the station, Mr Bernard Ediagbonya (a Superintendent of Police) however maintained that investigation was ongoing to unravel the mystery surrounding the murder. - See more at:

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First Bank Foresees Boom In Privatised Power Sector

 

As the federal government pays off workers of Power Holding Company of Nigeria (PHCN) to allow the new owners of the power firms take possession of the companies, First Bank Plc says the power distribution sector holds huge potential.

In its publication, Research Weekly, the bank highlighted the huge potential in power distribution business in Nigeria and in medicals.

The potential in medicals according to the report, is based on a recent report from the Indian High Commission which revealed that 47 per cent of Nigerians (estimated at 18,000 persons) who visited India in 2012 did so to get medical attention in both private and government owned hospitals at a cost of N41.6 billion ($260 million).

First Bank research unit disclosed that the inherent potentials in power distribution business in Nigeria was also based on recent report that distribution companies (discos) generated N189 billion ($1.18 billion) year to date as at May 2013.

The realised funds were said to amount to a 25 per cent increase in the funds generated in 2011. This increase in collections has been attributed primarily to the increase in the tariffs. Tariffs, notwithstanding, the potential to generate a significant amount of cash on a regular basis as is the case with the telecoms sector cannot be downplayed nor overlooked.

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Firms generate 1,457mw off-grid power on growing supply gap

 

Nigerian companies’ efforts to meet their respective power demand in the face of worsening supply have resulted to a whopping generation of about 1,457 megawatts (mw) off-grid electricity, about 36 percent of Nigeria’s 4000mw grid energy, BusinessDay has learnt.

The big power consuming firms, especially multinationals and manufacturing concerns, have in recent years disengaged from the national grid due to poor supply and over-bloated charges. They therefore invested in generating their own power off-grid through captive power plants, which cumulatively has been put at 1,457mw.

The companies’ efforts, according to sources, have led to cheap power, which has boosted gross margins and profitability. However, the gains by the companies, may adversely affect the fortunes of new investors in the sector who may have the Herculean task of winning the companies back on grid.

BusinessDay analysis shows that the captive power plants built by the various companies are helping them to remain competitive, which may make it difficult for the privatised generating companies (GENCOs) and distribution companies (DISCOs) to get them back on the grid in the short term.

Some of the companies that have invested in captive power plants include Lafarge WAPCO (90mw), Dangote Cement (258mw) at Obajana and Ibeshe, Western Metal Product Company Limited (WEMPCO) 52mw, Nigerian Breweries plc (16.8mw), Guinness Nigeria’s Ogba brewery (9.3mw), and Nestle Nigeria plc (3mw

 

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Privatization: FG hands over PHCN to new investors Sept 21

 

BY EMMA UJAH, ABUJA BUREAU CHIEFABUJA—The Federal Government will hand over privatized successor companies of the Power Holding Company of Nigeria, PHCN, to private investors on September 21, 2013, if the investors pay on schedule.The Director-General of the Bureau of Public Enterprises, PBE, Mr. Benjamin Dikki, disclosed this in an interview in Abuja.He disclosed that the PHCN privatization was expected to earn the Federal Government about $2 billion.Dikki said: “To purchase this Power Holding Company, over $2 billion will be paid by the bidders, and that is because the investors can see a clear investment horizon. They don’t have to go and lobby anybody, all they require is to meet the technical requirement, go to the regulatory authority, apply for licence and they are limited by their own ingenuity and their access to the capital. - See more at:

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Timely handover of GENCOs, DISCOs doubtful

 

The Federal Government’s inability to complete the payment of benefits to the Power Holding Company of Nigeria (PHCN) workers may affect the planned handing over of 15 Electricity Generation Companies (GENCOs) and Electricity Distribution Companies (DISCOs) earlier rescheduled for this month.

Investigations showed that only PHCN workers at the head office in Abuja were paid while others in different parts of the country are yet to be paid.

A source, who preferred not to be named, said: “From all indications, it appears that the government has no enough fund to make immediate payment. It is unimaginable why the payment should be delayed after the completion of the verification exercise.

“If there are adequate funds, we should have witnessed rapid payment because the Federal Government has earlier fixed this month as a target for handover of the GENCOs and DISCos to the preferred bidders.”

The completion of payment is said to be critical to the handing over of the firms

 

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Ministry insists on transparent, productive review of Electricity Act

 

07 August 2013, Abuja – The Ministry of Power has said its planned review of Nigeria’s almost eight years old Electric Power Sector Reform, EPSR, Act is intended to keep the sector abreast with extant changes in the emerging electricity market.

The ministry said it was already looking ahead to obvious challenges that would arise in a post privatised power sector; hence, its decision to initiate the review of the electricity legislation which was made in a period when the power sector was wholly a federal government affair.

According to a statement from the ministry in Abuja, its intention for the planned review of the 2005 EPSR Act which was borne out of the 2003 National Electricity Power Policy, NEPP, was to ensure that maximum benefits from ongoing reform process in the power sector would accrue to Nigerians.

 

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We have succeeded in power sector reforms – BPE DG

Benjamin Ezra Dikki is the Director General/Chief Executive, Bureau of Public Enterprises (BPE). In this interview with ONYEKA-AJUMOBI ONOCHIE shortly after the bid opening for Afam and Kaduna power plants in Abuja, he said the bureau can now beat its chest and proclaim success for the nation’s power sector reforms. Excerpt:

I recall that bids for Afam and Kaduna power plants had earlier been conducted; why are you repeating them?

Yes, you are correct. But if you recall, none of the bids received for Afam power plant and Kaduna DISCO met the minimum score of 750 marks required to pass the technical evaluation during the first round of sale of PHCN successor companies.

Therefore, the BPE invited fresh bids from all the pre-qualified bidders, in accordance with approval of the National Council on Privatisation (NCP) to commence another bid process for the two successor companies. This entailed inviting fresh bids from all the shortlisted bidders that paid the required $20,000 fee for the bid documents.

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Severance package: FG begins payment of PHCN workers

 

 

The Federal Government has commenced the payment of the severance packages of employees of the Power Holding Company of Nigeria in preparation for the conclusion of the privatisation of the power sector.

Our correspondent gathered on Tuesday that the Office of the Accountant-General of the Federation had commenced paying off some workers of the power firm.

It was also learnt that some workers of the power generating companies, which were carved out of the PHCN, had received alerts from their banks that their entitlements had been paid

 

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PHCN Staff Payoff: FG Begins Payment

 

Payment of the severance benefits of staff of the Power Holding Company of Nigeria (PHCN) has started. LEADERSHIP reliably gathered that the Office of the Accountant-General of the Federation (OAGF) commenced the payment since Thursday, August 1. However, the payments are being made in batches. LEADERSHIP also learnt that, as at August 1, a total of 20,304 PHCN staff had been cleared for payment. A total of 3,938 staff of power generation companies (GENCOs) and PHCN Headquarters were paid the sum of N34.585 billion. Also, another 16,366 staff of power distribution companies (DISCOs) have been cleared by the auditors and are ready for onward transmission to the OAGF for payment: the amount is N84.5 billion. On the whole, the federal government is to pay a total of N400 billion to the workers, retirees and pensioners of the PHCN.

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PHCN, Benin Zone, set to introduce new Pre-Paid Meters

By Eigbiremolen Tunde/Mercy Iyahen


BENIN CITY – Power Holding Company of Nigeria (P.H.C.N), Benin Business District is set to roll out New Prepaid Metres, obtainable within 45 days of payment.


This was disclosed to The NIGERIAN OBSERVER, by the Assistant General Manager, (AGM) Public Affairs, PHCN, Babatunde Fadipe in an exclusive chat.


According to Fadipe, the unbundling of PHCN through the privatization policy of the Federal Government is geared towards effective service delivery, particularly in the Administration of the New Prepaid Metres; and other issues connected therewith, in line with the National Assembly Act of 2011.


In his words “The Metre cost is non-refundable but the metre cost will eventually be refunded it to consumers over a period of time. Within 45 days of payment, the consumer can access his or her prepaid metre. The implication is that more consumers will have access to prepaid meters without any difficulty whatsoever, unlike the previous arrangement.”

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Severance package: AGF clears 20,304 PHCN workers for payment

 

IN fulfilment of the promise made by the Director-General of the Bureau of Public Enterprises (BPE), Mr Benjamin Dikki, about 20, 304 ex-workers of the Power Holding Company of Nigeria (PHCN) have been cleared to receive their severance package by the Office of the Accountant General of the Federation (OAGF).

With the commencement of payment on August 1, 2013, 3,938 names of staff of GENCOs and PHCN Headquarters were forwarded to the OAGF for the payment which amounted to N34.585 billion.

According to the chairman, Implementation Committee on the settlement of PHCN staff terminal benefits, Mr Godswill Igali, other 16, 366 staff of Power Distribution Companies (DISCOs) were cleared on Tuesday by the auditors and are ready for onward transmission to the OAGF for a payment of N84.5 billion.

Disclosing that the payment of terminal benefits is a continuous process, Mr Igali stated that more staff will be cleared by the auditors before the end of this week .

 

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FG begins payment of PHCN workers’ severance package

 

The Office Accountant General of the Federation (AGF) has commenced the payment of N34.585 billion to 3,938 staff of Power Holding Company of Nigeria (PHCN).

The affected workers are those of Generation Companies (GENCO) and the PHCN Headquarters.

According to an official of the Implementation Committee on the settlement of PHCN staff terminal benefits headed by Godswill Igali, names of the affected staff had been forwarded to the OAGF for payment.

The official noted that “as at August 5, another 16,366 staff of the Distribution Companies (DISCOs) had been cleared by the auditors and are ready for onward transmission to the OAGF for payment and the amount is N84.5 billion.”

The official added that, “so far 20,304 workers have been cleared. Hopefully, more staff would be cleared by the auditors before the end of this week as it is a continuous process.”

 

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FG Pays N118bn as Severance Package to PHCN Staff

 

 

By James Emejo 


The federal government Tuesday said the payment of severance benefits to workers of the Power Holding Company of Nigeria (PHCN) had commenced in earnest with the approval of about N118 billion for about 20,304 members of staff, who had been cleared.

The payment, said to have commenced on August 1, was being made by the Office Accountant General of the Federation (OAGF).

The Chairman, Implementation Committee on the settlement of the PHCN staff terminal benefits, Mr. Godswill Igali, said the initial batch of 3,938 names of staff comprising those from generation companies (GENCOs) and PHCN headquarters had been forwarded to the OAGF for payment, which was to the tune of N34.585 billion.

 

 

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Ministry Insists on Transparent, Productive Review of Electricity Act

 

Prof Chinedu Nebo, Power Minister

Chineme Okafor

The Ministry of Power has said its planned review of Nigeria’s almost eight years old Electric Power Sector Reform (EPSR) Act is intended to keep the sector abreast with extant changes in the emerging electricity market.

The ministry said it was already looking ahead to obvious challenges that would arise in a post privatised power sector; hence, its decision to initiate the review of the electricity legislation which was made in a period when the power sector was wholly a federal government affair.

According to a statement from the ministry in Abuja, its intention for the planned review of the 2005 EPSR Act which was borne out of the 2003 National Electricity Power Policy (NEPP) was to ensure that maximum benefits from ongoing reform process in the power sector would accrue to Nigerians.

 

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TCN, PHCN received N21.2b in less than one year – Nebo

 

By Obas Esiedesa/Abuja

Contrary to claims that the Federal Government has been starving parastatals of funds, Minister of Power, Prof. Chinedu Nebo, says about N21.2 billion has so far been disbursed to the three segments of Nigeria’s Electricity Supply Industry – generation, transmission and distribution under his watch.

According to him, the release of a $100 million loan from the African Development bank, AfDB, to the Transmission Company of Nigeria, TCN, to fund critical transmission projects, as well as a N5.2 billion special intervention fund to successor distribution and generation companies of the Power Holding Company of Nigeria, PHCN, for operation and maintenance services, have been effected since he assumed office in February.

Nebo also said the Federal Government would soon establish the National Council on Power, whose primary responsibility would be to strengthen the rural electrification programme.

 

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Nigeria’s final PHCN generation and distribution privatisation bid winners announced

 

 

5 August 2013 - The privatisation programme of Nigeria’s power sector took another step forward with the Taleveras group named as the preferred bidder for the Afam power generation facility. It offered US$260 million for the asset, with TES Power’s US$223 million bid qualifying that group as the reserve bidder.

Nigeria’s National Council on Privatisation (NCP) had suspended bids for Afam after it was revealed that the former power minister, Bart Nnaji, had links with one of the consortia which had submitted bids for the plant.

The winning bid for the Kaduna distribution company was Northwest Power with an aggregate technical, commercial and collection loss reduction proposal of 29.26%. The second place and reserve bidder was the LEDA Consortium that offered an aggregate technical, commercial and collection 26.71% to take second place as the reserve bidder. A third bidder, the Incar Consortium offered 22.73%. The bidders for this distribution company were selected using these proposals because of the urgent need to reduce losses and create a self-sustaining electricity market. The previous round of bidding on the privatisation of the Kaduna distribution company was adjudged inconclusive, as none of the prior bidders met the technical qualification criteria.

 

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Jonathan petitioned over power tariffs

 

By: Henry Ifeanyi2013-08-05 10:00

Lagos - The Socio-Economic Rights and Accountability Project (SERAP) has petitioned President Goodluck Jonathan over the recent increase in electricity tariffs by the Power Holding Company of Nigeria.

The group said such increases were unfair considering the inadequate power supply.

“Increasing electricity tariff by over 100 percent at a time power supply has not improved and indeed remains irregular and despite this government’s oft-expressed commitment to improve electricity supply, is anti-people," the group's petition, signed by Executive Director, Adetokunbo Mumuni, read.

The organisation appealed to Jonathan to order the reversal of the tariff increase.

“We urge President Jonathan to use his leadership and position to urgently instruct the Power Holding Company of Nigeria (PHCN) and the Nigerian Electricity Regulatory Commission (NERC) to reverse the new electricity tariff as it is manifestly arbitrary, unfair, unjust and discriminatory.”

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FG has no money to pay off electricity workers – NUEE

VICTOR AHIUMA-YOUNG

SINCE November 2012, the Federal Government and electricity workers reached agreement on major labour issues regarding power sector privatization, yet these are not implemented. In this interview, the General Secretary of National Union of Electricity Employees, NUEE, Mr.Joe Ajaero, gives insights into the situation from the labour’s perspective. Excerpts:

What is the situation with the government in terms of workers’ benefits and other issues ahead of the transfer of the Power Holding Company of Nigeria, PHCN’s assets to the private sector?

Well the position clearly is that the Nigeria Government does not have money to finance reforms and if they don’t have money to finance reforms, they are taking certain steps and actions that are capable of derailing the process while at the same time they are trying to shift the blame to the workers. Negotiations were concluded since last year and on daily basis they have been making claims of when they are to pay or whether they have started paying.

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General Electric Begins $1b Investment Initiative In Nigeria

 

General Electric Company, a global technology leader in energy has strategically commenced implementation of its investment initiative in Nigeria with the hosting of a supplier fair in Calabar, Cross River State.

The Global Chief Executive Officer of the company, Jeff Immelt, had at the beginning of the year during his visit to Nigeria announced a $1 billion investment in the country.

A statement issued by Oluwafemi Ugbada, Jackson Associate Analyst, the company explained that the fair which held at the Tinapa Lakeside Hotel, Calabar had in attendance over 200 Nigerian-owned companies and was intended to increase the company’s local content operations in Nigeria.

It was also a platform for GE to share with local suppliers, financial service companies as well as Cross River State’s investors, the opportunities that existed for partnership on the Calabar investment project. The company has planned to implement a manufacturing and assembly plant which would provide 2300 jobs, 300 of which would be direct GE hires and the remaining 2000 indirect jobs created through GE suppliers that would support its expanded operations.

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Issues in AMCON, PHCN staff property tussle

 

Following the introduction of the monetisation policy by the then Olusegun Obasanjo administration, the management of the Power Holding Company of Nigeria (PHCN) sought and got the approval of the President to sell the company’s non-core quarters to staff occupying them, if they wanted to buy.

Among the properties approved for sale was the one located at 5A, George Street, Ikoyi, Lagos. The property belonged to Electricity Corporation of Nigeria (ECN), a precursor of the National Electricity Power Authority (NEPA), which transformed into PHCN from the early 1960s when it served as the staff quarters to its expatriate staff. Niger Dams Authority, which emerged after ECN retained the possession of the property as staff quarters for its bona fide staff.

Occupants of the property namely, Michael A. Dada, Charles N. Amadi, Lawan. S. Muhammed, Mrs. Comfort N. Odili-Iwuafor and Anthony. A. Abikoye, all members of staff of PHCN, like others occupying the company’s properties in other parts of Lagos and the federation, applied to buy the property comprising six blocks of flats.

They borrowed money from family, friends, cooperative societies and banks to finance payment for the property. On September 29, 2009, occupants of the property and management of PHCN signed a Deed of Assignment and ownership was transferred to the occupants.

The occupants took possession of the property and started exercising ownership rights. They even started paying ground rents to the Lagos State government.

 

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AFC, GTBank, MESL seal $170 million financing pact for Kainji’s privatisation

 

THE Africa Finance Corporation (AFC) has provided a $170 million debt financing facility, under the scheme of arrangement that has Guaranty Trust Bank Plc (GTBank) underwriting the loan, for the acquisition of of Jebba Power Station and Kainji Power Station, by Mainstream Energy Solutions Limited (MESL).

On Friday, GTBank and MESL sealed about N27 billion medium term syndicated acquisition facility, for the purpose of part-financing the concession of the power stations, owned by Kainji Hydro Electric Plc.

The move, which was aimed at consolidating MESL’s bid for the takeover of Kainji Hydro Electric, under the current privatization programme, would assist also in paying off the last installment for the power firm, which date was approaching.

The syndication was fully underwritten by GTBank, which also acted as mandated lead arranger on the transaction, while the Africa Finance Corporation acted as co-mandated lead arranger.

 

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Imoke Appeals For Electricity Supply To State

 

Liyel Imoke has appealed to the Power Holding Company of Nigeria (PHCN), for the supply of more electricity to Calabar, the Cross River state capital.

According to the residents, it has been a growing concern for them in Calabar, the cross River state capital over what they termed inconsistency in power supply across the state.

This pitfall has according to them, crippled economic activities.

Since the beginning of this year, the issue of no constant electricity for duration of 3hours daily has been a common norm, some areas have not even had power for over six months yet bills are been paid to PHCN.

Concerned about this, the state governor, Liyel Imoke appealed to the Power Holding Company of Nigeria (PHCN), for the supply of more electricity to Calabar in line with its fast rate of expansion.

The governor was speaking while receiving the Business Manager of PHCN, Calabar, Engr. Aikowe Joseph, during a courtesy call at the governor’s office in Calabar, the Cross River State Capital.

 

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Rural Electrification: FG to establish National Council on Power

 

Abuja, Aug. 2, 2013 (NAN) The Federal Government on Friday said it would establish National Council on Power this year to ensure that its plan to electrify rural communities was implemented.

The Minister of Power, Prof. Chinedu Nebo, said this in a statement issued by Mr Timothy Oyedeji, the minister’s Deputy Director of Press, in Abuja.

The statement said Nebo announced the establishment of the council when a delegation from the Nigeria Society of Engineers (NSE), led by its President, Mr Mustapha Shehu, paid him a coutesy visit in Abuja.

 

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Preferred bidders for PHCN assets seeks financing for 75% balance payment

 

 

As the expiration of the deadline for the payment of the remaining 75 percent by the preferred bidders for the successor companies of the Power Holding Company of Nigeria (PHCN) draws nearer, investors who won the bids are in aggressives move to raise funds to meet the deadline, BusinessDay has learnt.

It was gathered that many of the investors are discussing with banks and financiers for the bankrolling of the balance of the bid price.

In what is an indication of what to expect in the coming days, the Africa Finance Corporation (AFC) has provided a $170 million debt financing facility in conjunction with Guaranty Trust Bank Plc, to the Mainstream Energy Solutions Limited consortium (MESL), for the acquisition of Kainji Power Plc, one of the generation companies (Gencos).

 

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Privatisation: FG Commences Review Of Electricity Law

 

The Ministry of Power said Friday that it has commenced the review of the Electricity Sector Power Reform Act of 2005 in line with current realities. Stressing that it is the mandate of the Ministry of Power to formulate policies, the Ministry said the review of the law is now more paramount, especially now that the power sector is at the final stage of privatisation.

In a statement, it noted: “Indeed, the Ministry is already looking ahead to those obvious challenges that would arise post privatisation. The question is for a legislation made in a period when the power sector was wholly Federal Government affairs, should it not be reviewed to address the present realities? For example, 2005 Electricity Power Sector Reform (EPSR Act) was borne out of the 2003 National Electricity Power Policy (NEPP), which was developed by the Ministry. Why should some individuals be against review that has just begun to gather momentum?

 

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Power Reforms: Will Payment Of Severance Package To PHCN Workers Clear The Coast?

 

THE report in the week that the Federal Government has ordered the immediate release of severance pay to the members of staff of the Power Holding Company of Nigeria (PHCN) who are to be disengaged to enable new owners take over the country’s electricity plants was cheering. The news was not only encouraging to the PHCN workers alone who would be smiling home with lump sums to start a new life but also to millions of Nigerians who grope in darkness due to poor electricity supply but pay high tariff in return as a result of PHCN’s poor and dubious billing system that leaves them wishing that the privatisation of the power sector becomes successfully completed in no time.

The Minister of Power, Prof. Chinedu Nebo, had at the Federal Ministry of Power-Siemens Power Development Forum last Tuesday in Abuja disclosed that he had approved the payment of the workers to start immediately and expressed hope that the workers would get paid before the end of the week. The following day (Wednesday), the Ministry of Power issued another statement to that effect saying: “The Minister has directed the commencement of the payment of severance package to PHCN staff, on which about N384 billion is going to be expended with additional N16 billion to pay other retirees and pensioners of the company. 

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PHCN: Fast track payment of severance allowance - MP

 

 

The Chairman House Committee on Labour, Employment and Productivity, Elder Essien Ekpeyong Ayu says delay in the settlement of PHCN staff will hamper the smooth transition of power sector to the private investors.

He told Radio Nigeria in Abuja that the Power reform had yielded some positive results but government should try to pay as quickly as possible the payment severance allowance of the affected PHCN staff.

On ASUU strike, the law maker appealed to the government and the lecturers to honour whatever agreements signed by the two parties.

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Govt Begins Payment Of Severance Benefits To Electricity Workers

 

How Procedural Issues Caused Delay

ELECTRICITY workers, who are to give way for new private owners of Nigeria’s electricity utilities to take over, have started getting their severance packages, according to the Federal Government.

There were initial concerns that firms who had paid the initial 25 per cent were skeptical about paying the balance of 75 per cent because of the lingering crisis between government and the workers, as the new plant owners want government to sort out its issues with Labour to allow a smooth take-off.

Information from the Ministry of Power indicate that over 9000 electricity workers in 17 successor companies of the Power Holding Company of Nigeria (PHCN) have started getting alerts from their banks.

The Ministry told The Guardian at the weekend that the telephones of electricity workers are already buzzing with alerts from their banks indicating actual payment from government.

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Negligence of past govts caused decay in power sector - Minister

 

The Minister of Power, Professor Chinedu Nebo, has expressed regret that the sector’s neglect has been as a result of wrong perceptions that the power sector is a social welfare service.

He observed that it was only in 1999, with the return of Nigeria to democracy, that the gross neglect got addressed. For instance, he said that although, for 17 years, no single engineer was hired in the power sector, this huge gap created in the sector as a result of low human capacity was being bridged with the ongoing recruitment of young Nigerian engineers.

The minister made this known while answering questions on the African Independent Television Programme: ‘’90 Minutes,’’ with the focus: Power Sector: Can Nigeria get it right, monitored in Abuja.

Professor Nebo, who said the current power generation was more than 4,000MW, further disclosed that before President Goodluck Jonathan’s administration, the country was producing just over 2,000MW.

He said “from 2,000MW in 2010 to the current 4,500MW, is this not achievement?”

 

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Power Sector Reforms: Taking a Cue from Telecoms Sector

 

Prof Chinedu Nebo, Power Minister

S.A. Bello

It is an undisputable fact that Nigeria witnessed a telecom revolution during the decade that started with the ushering in of the third democratic dispensation in 1999 up to 2010. Tele-density rose from 0.6 per cent to about 60 per cent within a decade. Can the same feat be repeated in the power sector? During a recent event in Lagos, the Minister for Power, Prof. Nebo was quoted as saying that the revolution that took place in the telecom sector will soon take place in the power sector. That is a good vision and a big ambition. I admire people like Prof. Nebo who are pessimistic and who believe in the power of positive thinking. However for this to happen, the political will, policy focus and the regulatory environment that gave birth to and nurtured the telecom revolution must be replicated in the power sector.

 

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PHCN Staff Payoff Delays Payment For Power Firms

 

 

Unless the PHCN labour issues are resolved amicably, payment of the 75 per cent outstanding obligation for the privatised distribution and generation companies by their core investors would suffer a major setback.

This is even as Taleveras Group and Nortwest Power Limited yesterday emerged the preferred bidders for the Afam Power Plc and Kaduna Distribution Company, the two power companies that were not privatised along with the 15 others last year. The bids are however subject to final approval from the National Council on Privatisation chaired by Vice-president Namadi Sambo.

LEADERSHIP checks reveal that though many of the core investors would have wanted to pay up the outstanding sum, none of them is willing to take the final plunge while issues with labour have not yet been resolved.

The minister of power, Professor Chinedu Nebo, had earlier said that some of the power companies would be handed over to their core investors in July following full payment of the balance money, LEADERSHIP reliably gathered that so far no core investor has paid the balance.

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PHCN workers, retirees, pensioners to get N400bn – FG

 

 

The Federal Government on Wednesday said N16bn had been approved for the payment of the entitlements of retirees and pensioners of the Power Holding Company of Nigeria in preparation for the conclusion of the privatisation of the power sector.

This is in addition to the N384bn earlier approved as severance package for employees of the power firm before the company is fully privatised.

Hence, the government will from this week pay a total of N400bn to the workers, retirees and pensioners of the PHCN.

The Minister of Power, Prof. Chinedu Nebo, has also directed the power distribution companies to resolve all issues surrounding the unfair billing and metering of electricity consumers.

Nebo, according to a statement from the Federal Ministry of Power, further assured that “at the end of the ongoing privatisation, Nigerians will heave a sigh of relief as generator importers will soon be eased out of business.”

 

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Former PHCN staff to receive severance package latest Friday —BPE

 

 

 

 

All former staffers of the unbundled Power Holding Company of Nigeria (PHCN) will receive their severance package, latest Friday as Alveras and NorthWest, on Wednesday, emerged winners in the bid opening for PHCN successor companies which took place in Abuja.

The Director General of the Bureau of Public Enterprise (BPE), Benjamin Dikki, speaking at the bid opening disclosed that all former staff of PHCN would begin to receive their severance package, by the end of this week.

Disclosing that there was no cause for alarm as all labour issues have been resolved, the BPE boss said.

“Everything has been complied, we have sent the payroll to the Accountant General of the Federation (AGF) and we are optimistic that before the end of this week , or latest next week, they would begin to receive alerts from their banks”.

Dikki described the event as another testimony of the success of the reforms of the power sector that began with the constitution of the Electric Power Sector Implementation Committee.

He said “the reform initiatives resulted in the preparation of a power policy blueprint that defined government’s new direction for the electric power sector that culminated in the production of the National Electric Power Policy in March 2011 and approved by the Federal Executive Council (FEC), in September 2011.

 

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