INTERSTATE Electrics has proposed N41.66 billion
for the upgrading of Enugu Electricity Distribution
Plc and for the general management of the
company over the next five years. The Bureau of Public Enterprises (BPE) made this
disclosure in a document, which places the
company’s proposal above all other core investor
in other distribution companies. According to the BPE, Interstate Capital investment
plans for the next five years beginning from
takeover date, would cover investments to reduce
technical, commercial and collection losses, and
the deployment of pre-paid meters to eliminate
the existing metering. It also includes the expansion of the company’s
network besides other investments necessary to
efficiently operate the firm. The BPE paper, which was being reanalysed
yesterday by the agency’s experts, stressed that
the technical loss investments will focus on
rehabilitation, replacement and strengthening of
network equipment as set out in the technical
plan, while commercial loss investment will focus on increasing billing and process efficiency as set
out in the Technical Plan. “This is intended to bring quality and
uninterrupted power to customers. The company
will eliminate the metering gap in two years and
provide meters to all new customers. Other
investments will be aimed at increasing the
operational efficiency of the Disco as indicated in the operational plan. Process efficiency and
devised enterprise solutions will result in
customer satisfaction”, the document added. In what appears a process of gauging the
capacities of the core investors preparatory to
their imminent takeover of the companies, it was
also revealed that the core investor for the Enugu
distribution company had proposed N12.8billion
for investments to reduce technical/system losses over the next five years. The proposal was also adjudged exceptional. A BPE chieftain added that “our fears over abilities
of most core investors have been allayed with
what has been paid so far. The problem with this
kind of business is raising acquisition/equity
funds. Once that is sorted out, you can be assured
that working capital is not likely going to be a problem, as financial institutions, both foreign
and local are easily disposed to funding such
projects given their prospects” Besides Interstates, other successful consortia are
West Power and Gas, the preferred bidder for the
Eko Distribution Company; NEDC/KEPCO, Ikeja
Distribution Company; 4power Consortium, Port
Harcourt Distribution Company; Vigeo Consortium,
Benin Distribution Company; Aura Energy, Jos Distribution Company; Kann Consortium, Abuja
Distribution Company; Integrated Energy
Distribution and marketing Company, the
preferred bidder for the Ibadan and Yola
Distribution Companies; Sahelian Power, Kano
Distribution Company; Transcorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy
Limited, Kanji Power Plc; and CMEC/EUAFRIC Energy
JV, which made the part-payment for the
acquisition of Sapele Power Plc.
for the upgrading of Enugu Electricity Distribution
Plc and for the general management of the
company over the next five years. The Bureau of Public Enterprises (BPE) made this
disclosure in a document, which places the
company’s proposal above all other core investor
in other distribution companies. According to the BPE, Interstate Capital investment
plans for the next five years beginning from
takeover date, would cover investments to reduce
technical, commercial and collection losses, and
the deployment of pre-paid meters to eliminate
the existing metering. It also includes the expansion of the company’s
network besides other investments necessary to
efficiently operate the firm. The BPE paper, which was being reanalysed
yesterday by the agency’s experts, stressed that
the technical loss investments will focus on
rehabilitation, replacement and strengthening of
network equipment as set out in the technical
plan, while commercial loss investment will focus on increasing billing and process efficiency as set
out in the Technical Plan. “This is intended to bring quality and
uninterrupted power to customers. The company
will eliminate the metering gap in two years and
provide meters to all new customers. Other
investments will be aimed at increasing the
operational efficiency of the Disco as indicated in the operational plan. Process efficiency and
devised enterprise solutions will result in
customer satisfaction”, the document added. In what appears a process of gauging the
capacities of the core investors preparatory to
their imminent takeover of the companies, it was
also revealed that the core investor for the Enugu
distribution company had proposed N12.8billion
for investments to reduce technical/system losses over the next five years. The proposal was also adjudged exceptional. A BPE chieftain added that “our fears over abilities
of most core investors have been allayed with
what has been paid so far. The problem with this
kind of business is raising acquisition/equity
funds. Once that is sorted out, you can be assured
that working capital is not likely going to be a problem, as financial institutions, both foreign
and local are easily disposed to funding such
projects given their prospects” Besides Interstates, other successful consortia are
West Power and Gas, the preferred bidder for the
Eko Distribution Company; NEDC/KEPCO, Ikeja
Distribution Company; 4power Consortium, Port
Harcourt Distribution Company; Vigeo Consortium,
Benin Distribution Company; Aura Energy, Jos Distribution Company; Kann Consortium, Abuja
Distribution Company; Integrated Energy
Distribution and marketing Company, the
preferred bidder for the Ibadan and Yola
Distribution Companies; Sahelian Power, Kano
Distribution Company; Transcorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy
Limited, Kanji Power Plc; and CMEC/EUAFRIC Energy
JV, which made the part-payment for the
acquisition of Sapele Power Plc.
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