Abuja -The Bureau of Public Entreprise (BPE) has formally handed over
Olorunsogo Power Plc to SEPCO-Pacific Partners, a private company.
This is contained in a statement made available to newsmen by the Head, Public
Communications of BPE, Chigbo Aniechebe.
According to the statement, the handover of the plant brings the total
number of power assets handed over to the private sector in the last four
months to 16.
It said that the handover was done by the Chairman of National Council on
Privatisation (NCP), Vice President Namadi Sambo, at the council’s last
The Vice President, who was represented by the Director-General BPE,
Benjamin Dikki, said the privatisation programme would not have been possible
without the support from President Goodluck Jonathan.
Sambo said that the Phase One of Olorunsogo Power Plant had a capacity of
335MW and was constructed between 2002 and 2007 at the cost of $167 million.
He said that the power plant was initially a joint project between the
Federal Government and SEPCO on the basis that Federal Government would provide
35 percent while SEPCO the remaining 65 per cent.
“It was conceived initially in the contract and terms of the agreement that
the power project after completion would operate commercially.
“Then the proceeds from the sales of electricity generated will be used for
the repayment of the vendor financing and interest payment.
“However, the delay in the completion period coupled with limitation in gas
supply and paucity of funds at PHCN, resulted to default in the payment of the
debt and accumulation of unpaid invoices to SEPCO.
“ This debt was finally taken over by the Debt Management Office In 2010,’’
Sambo said that President Jonathan later approved the divestiture of Federal
Government shares from the plant.
This, according to him, resulted in the BPE commencing negotiations with
SEPCO-Pacific to convert the project’s finance debt to equity and resolve the
financial commitment of the Federal Government.
Earlier in his remarks, the Chairman of SEPCO-Pacific, Dr. Adedeji Adeleke,
said his firm has confidence in the Nigeria economy.
Adeleke also commended the commitment and transparency exhibited by the BPE
throughout the power reform and privatisation programmes in spite of the
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