Core Investor Sale of Electricity Distribution Companies at National Council on Privatisation

Federal Republic of Nigeria

National Council on Privatisation

Invitation for Expressions of Interest for

Core Investor Sale of Electricity Distribution Companies

1. The Federal Government of Nigeria owned electricity utility has been unbundled into generation and distribution companies and a transmission company to encourage private sector participation and attract foreign and local investment into the Nigerian electricity sector to ensure economic and reliable electricity supply.
2. Pursuant to the National Electric Power Policy (NEPP) 2001 and the Electric Power Sector Reform Act 2005, the Federal Government of Nigeria, through the National Council on Privatization (NCP) and its Secretariat, the Bureau of Public Enterprises (BPE), has embarked upon the reform and privatization of the companies created following the unbundling and restructuring of the electricity industry.
3. The NCP/BPE, on behalf of the Federal Government of Nigeria (FGN), invite prospective core investors to express interest in the distribution companies.
4. The transactions to be conducted through International Competitive Bidding (ICB) will cover services of all eleven (11) electricity distribution companies in the country. They are:

• Abuja Electricity Distribution Company Plc;
• Benin Electricity Distribution Company Plc;
• Enugu Electricity Distribution Company Plc;
• Eko Electricity Distribution Company Plc;
• Ibadan Electricity Distribution Company Plc;
• Ikeja Electricity Distribution Company Plc;
• Jos Electricity Distribution Company Plc;
• Kaduna Electricity Distribution Company Plc;
• Kano Electricity Distribution Company Plc;
• Port Harcourt Electricity Distribution Company Plc; and
• Yola Electricity Distribution Company Plc.

For additional information on the companies, please visit our website: www.bpeng.org

1. 5. Potential bidders should be existing power distribution companies or core investor groups with power distribution companies as long-term technical partners.
2. 6. Successful bidders will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government of Nigeria set out in the NEPP.
3. 7. Method of Application:- Potential bidders should indicate their interest by providing the following documentation and information under the subject headings specified:

• Full name of company and contact person, postal address, telephone/fax numbers and e-mail addresses;
• Ownership structure of company; name(s) of major shareholders and percentage shareholding;
• Audited financial statements of the bidding company or members of core investor groups for the past three (3) years and most recent management accounts;
• Technical and operational capabilities:

1. Years of experience in power distribution, customers served, length of networks;
2. Evidence of similar distribution networks owned around the world especially in developing economies;
3. Evidence of adequate financial resources to finance investment; and
4. Experience in a developing economy.

1. Upon receipt of Expressions of Interest from interested investors, the BPE shall evaluate and pre-qualify applicants.
2. Thereafter, pre-qualified bidders will be issued a Request for Proposal (RFP) and other bidding documents upon the payment of non-refundable fee of $20, 000 in bank draft payable to the Bureau of Public Enterprises.
3. Interested parties shall indicate in order of priority which company (ies) they are interested in.
4. 11. An original and five (5) other copies of Expressions of Interest (including a soft copy) shall be delivered in a sealed envelope clearly marked “EOI Electricity Distribution Companies Transaction” at the top right hand corner and delivered to the address below on or before 18^th February, 2011 by 17Hrs, local time (16Hrs.GMT).

Ms. Bolanle Onagoruwa

Director General

Bureau of Public Enterprises (BPE)

11 Osun Crescent, off IBB Way

Maitama, Abuja – Nigeria, at Room 131

Tel: 234-9-4604400

E-mail: bonagoruwa@bpeng.org

Attention: Mr. Chigbo Anichebe

Ag. Director, Electric Power Department

Tel/Fax: +234-9-4604433

For further clarification or enquiries, contact:

Mr. Amaechi C. Aloke

Project Manager

Electric Power Department

aatoke@bpeng.org or aaloke2000@gmail.com

Tel: + 234-8057776422

Or the Transaction Advisers, CPCS Transcom,

E-mail: abuja@cpcstrans.com

1. 12. For information on upcoming investors’ fora and other instructions, applicants are advised to regularly visit any of the following websites: www.bpeng.org, www.cpcstrans.com or the dedicated www.nigeriaelectricityprivatisation.com

Please note the following: –

• Prospective bidders may express interest in more than one company;
• The name of the prospective bidder must be stated on the envelope;
• Submissions made by e-mail / late submission will be rejected; and
• Only short listed firms will be contacted.

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