The Bureau of Public Enterprises, operating under the Federal Government, is currently in the process of conducting transactions for the sale of five power plants associated with the National Integrated Power Projects, amounting to approximately $1.15 billion, according to reports on Tuesday. While industry insiders suggest that the international benchmark values these plants at over $5 billion, the BPE intends to sell them at a slightly higher price, around $1.1 billion.
Ignatius Ayewoh, the Acting Director-General of BPE, acknowledged the ongoing transaction in a brief telephone conversation but emphasized that it has not been concluded. Ayewoh refrained from disclosing the specific cost of the five power plants, citing an ongoing meeting and the inability to provide additional details.
However, confidential sources within the bureau identified the power plants slated for sale, including the 434MW Geregu II plant in Kogi, the 451MW Omotosho II plant in Ondo, the 750MW Olorunshogo II plant in Ogun State, the 563MW Odukpami plant in Calabar, Cross River State, and the 451MW Benin-Ihovbor plant in Edo State.
Insiders revealed that the Omotosho plant, equipped with four power-generating turbines, is expected to be sold for approximately $85 million, while the Olorunshogo NIPP, also featuring four turbines, carries a price tag of $170 million. The Benin-Ihovbor plant, with five power-generating turbines, is valued at $420 million; the Calabar Odukpami plant, housing five turbines, is estimated at around $260 million, and the Geregu plant, with four turbines, is set at $215 million.
Sources clarified that these plants utilize Siemens turbines, each capable of generating about 115MW of electricity. When calculated at a cost of approximately $1 million to construct a 1MW power plant, the total value of the five NIPP plants would exceed $5 billion, according to the sources.
It is important to note that the cost of constructing a 1MW power plant can vary based on factors such as the type of plant, location, and technological advancements. Despite the ongoing transaction, the Acting DG of BPE emphasized that the sale has not been finalized.
The decision to sell these power plants was reached in December 2022, with the proceeds intended to fund the 2023 budget, following over two years of disputes and legal battles. The Niger Delta Power Holding Company manages the NIPPs, and its confirmation of the sale is still pending. While the former BPE boss projected the sale to generate over N260 billion (around $600 million), there were concerns that this amount might not significantly impact the budget deficits at the time. Although there is no official confirmation on the cost of the NIPPs, some sources speculate initial estimates ranging from $300 million to $500 million per plant.
