Nigeria says to sell power sector assets by Q1 2012

Tue Jun 14, 2011 4:55pm GMT
 

ABUJA (Reuters) - Nigeria hopes to complete the sale of six power plants and 11 distribution firms by the first quarter of next year as part of a multi-billion dollar privatisation plan, its Bureau of Public Enterprises said.

Nigeria is selling four thermal and two hydro power plants and 11 electricity distribution firms as part of a drive to end chronic power shortages that are a major brake on sub-Saharan Africa's second-largest economy.

"The hope is that by the first quarter of 2012 we will be able to hand over to the investors," Bolanle Onagoruwa, director general of the BPE, said at an industry conference on Tuesday.

Onagoruwa said the 207 shortlisted bidders would need to pay a $20,000 fee for each asset they were interested in by July 15 to confirm their intention to bid and final offers would be submitted on November 1 after a due diligence process.

Only around 40 percent of Nigeria's 150 million people currently have access to electricity, making the potential returns for investors in the power sector huge.

<p>Electricity pylons are seen as the sun sets in Soweto outside Johannesburg November 22, 2009. REUTERS/Siphiwe Sibeko</p>
 
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