.As NCP approves merger of Egbin Power with KEPCO
The National Council on Privatisation (NCP), has approved Mainstream Energy Solutions Limited (MESL), as the preferred bidder for the concession of the Zungeru Hydroelectric Power Plant (ZHPP) for a fee of $70,000.251.00 per year for a period of 30 years.
The Council, chaired by the Vice President, Yemi Osibanjo, which gave the approval at its 2nd meeting for the year 2023, on Tuesday, at the Presidential Villa, Abuja, directed the Bureau of Public Enterprises (BPE) to commence negotiations and execution of the concession agreement with the preferred bidder.
According to a statement from the Bureau yesterday, “MESL (the preferred bidder) scored 1142 marks (94.3%) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75% of 1,200 marks, having offered the highest concession fee of USD70,000,251.00 to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points.”
Recall that the NCP at its 7th meeting for the year 2020, held on December 21, 2020, approved the concession of the ZHPP, consequent which the Federal Ministry of Power (FMOP) donated an irrevocable Power of Attorney to the BPE on June 30, 2021, for the implementations of the NCP’s decision.
Based on this, the BPE published the Requests for Qualifications (RfQ) for the concession of the power plant in three national newspapers on October 27, 2022, which at the close of the deadline, 11 firms submitted bids.
Three of them – Africa Plus Partners Nigeria Limited Consortium (APPNLC), Mainstream Energy Solutions Limited (MESL), and North-South Power Consortium (NSP) were prequalified.
In another development, the NCP also approved a scheme of External Restructuring proposed by KEPCO Energy Resources Nigeria Limited (KERNL), the core Investor in Egbin Power Plant.
The approval is to enable the entity to boost its capacity to raise the required capital to double the existing capacity of the plant to 2640MW.
MESL (the preferred bidder) scored 1142 marks (94.3%) of the total 1,200 marks, thus surpassing the minimum benchmark score of 75% of 1,200 marks, having offered the highest concession fee of USD$70,000,251.00 to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points.
