BPE Plans to Raise N2.2trn from Geregu, Omotosho, Calabar Power Plants’ sale & National Stadium, TBS, 5 Others’ Concession

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The Federal Government has concluded arrangements to sell Geregu, Omotosho and Calabar power plants for N434 billion next year.
Geregu Power Plant

The Government has also concluded plans to concession the National Stadium, Lagos, Moshood Abiola Stadium, Abuja, Jos International Stadium and Adokiye Amiesimaka Stadium in Port Harcourt for N100 million next year.

Also, the government will in 2021, concession the National Art Theatre, Tafawa Balewa Square and all the River Basin Development Authorities to the tune of N836 million.

The arrangements by the Government are contained in a document submitted by the Bureau of Public Enterprises, BPE to the Senate during the 2021 budget defence in Abuja.

According to the breakdown, Geregu power plant which 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 government explained in the document that the proceeds from the three power plants will be paid into Niger Delta Power Holding Company (NDPHC)

The breakdown further showed that the National Art Theatre will be concessioned for N200 million; Tafawa Balewa Square will be concessioned for N436 million and all the River Basin Development Authorities will go for N200 million.

National Theatre

Meanwhile, the BPE has been summoned to appear before the Senator Theodore Orji led Senate Committee on Privatization and Commercialization to explain in detail the planned sales 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 the Afam and Geregu Power plants to ensure that the country is not short-changed in the transaction.

The Senate Committee has also asked the Director-General of BPE, Alex Okoh to provide members with copies of the agreements, reports and approvals from the National Council on Privatization over the transactions of the Afam and Geregu power plants for review.

National Stadium Lagos

Orji said: “We also found that in Geregu Power Plant, the core investor already owned 51% shares and that the transaction emanated from a request by the investor for additional 29% of FGN residual 49% shares.

“There was no competition and only BPE and their appointed transaction advisers knew how the value was determined and sold for 13 Billion.”

“Afam Power Plant are actually two (2) different Power Plants i.e 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 $1million USD to build a Megawatt of Power Plant”, he added.

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