The Bureau of Public Enterprises (BPE) has released the revised industry and transaction agreements to the 152 potential investors interested in the privatisation of the 17 successor companies created from the unbundling of the Power Holding Company of Nigeria (PHCN). The 13 agreements were sent to the bidders on Friday, March 30, 2012.
The?? transaction documents are: Share Sale Agreement; Shareholders Agreement; Performance Agreement; and Concession Agreement.
The industry documents are: 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 Ancillary Services Agreement.
In a letter to the bidders, the Acting Director of Electric Power at the BPE, Mallam Ibrahim Babagana, stated that “as per the timetable issued to you, we expect to receive all comments on these documents by April 20, 2012 at the latest.”
He added: “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 documents will not be accepted.”
Recall that following the bidder feedback received by the privatisation agency on the industry and transaction structure, a legal retreat was organised by BPE in Enugu between November 29 and 31, 2011, which involved key stakeholders in the power sector.
According to Babagana, “At? the retreat, agreements were made and the way forward was established in working to address the comments the bidders made on the documents. 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.”