PHCN sale: Final transaction documents ready in May, Thursday, 05 Apr 2012  


(The Punch) The final transaction documents for the sale of 17 successor companies of the Power Holding Company of Nigeria will be ready on May 11, 2012, the Bureau of Public Enterprises has said. In a letter to 152 potential investors in the electricity companies, the acting Director of Power, BPE, Mr. Ibrahim Babagana, said after May 11, no modification of the documents would be acceptable to the privatisation agency. He also told the potential investors that they were expected to respond to the legal documents forwarded to them on March 30 on or before April 20, according to a statement issued in Abuja on Wednesday by the Head of Public Communications, BPE, Mr. Chukwuma Nwokoh. Babagana was quoted as saying, "As per the timetable issued to you, we expect to receive all comments on these documents by April 20, 2012 at the latest. "We commit to provide to you the final version of the transaction and industry documents by May 11, 2012. After this date, further modifications to any document will not be accepted."

The transaction documents that were sent to the prospective investors for review were the Share Sale Agreement; Shareholders Agreement; Performance Agreement; and Concession Agreement. The industry documents, on the other hand, are the Gas Sale and Aggregation Agreement; Gas Transportation Agreement; Bulk Power Purchase Agreement (Thermal); Bulk Power Purchase Agreement (Hydro); Vesting Contract; Transmission Use of System Agreement; Grid Connection Agreement; and the Ancillary Services Agreement. Following the receipt of bidders' feedback on the industry and transaction structure, a legal retreat was organised by BPE in Enugu between November 29 and November 31, 2011, which involved key stakeholders in the power sector. The revised industry and transaction agreements are the products of extensive review process and working with all key stakeholders responsible for the various industry documents. According to the revised bid timetable released recently by BPE, the announcement of the preferred bidder for the 17 successor companies by the NCP will be made on or before October 23.


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