President Jonathan hands over power plants to new core owners

President Goodluck Jonathan on Monday read riot act to Ministries,
Departments and Agencies (MDAs) cautioning the power sector staff to
re-orientate themselves in order to be able to meet up with their new
roles under the on-going reforms in the power sector.
Giving the warning after formally handing over share certificates and
licenses to new core owners of Power Holding Companies of Nigeria
(PHCN) successor companies at the Banquet Hall, Abuja, to 10
Distribution Companies (DISCOs) and four Generating Companies
(GENCOs), he said that it is no longer going to be business as usual.
He said the government is committed to providing the investors with
all enabling environment in order to make them succeed in giving
Nigerians uninterrupted power supply.
According to him, the Federal Government has provided the Nigeria Bulk
Electricity Trading Company (NBET) capitalization fund of over $750
million to carry out its functions without financial constraints.
He said: "However, I must remind you that the work is not over. Your
staff must re-orient themselves to play the needed new roles that have
been assigned to them as a result of the reform.
"They must be prepared to collaborate efficiently with our private
sector partners; business it can no longer be as usual; all the
relevant MDAs must be ready to work in a more determined, proactive
and result-driven manner," he said.
On the government support for the investors, he said: "The
administration is committed to providing all elements that are
necessary for our private sector partners to succeed in providing
Nigerians with uninterrupted power supply."
"To start with, the Nigerian Bulk Electricity Trading Company (NBET),
the off-taker, has been provided with a capitalization of $750 million
positioning it to carry out its mandate without financial constraints.
"Arrangements are also on-going to ensure that the Nigerian
Electricity Liability Company (NELMCO) is adequately funded, to assume
all of the liabilities associated with the privatisation of the PHCN
successor companies, as well as other related liabilities."
He continued: "The new GENCOs owners are inheriting signed gas supply
and transportation agreements, a new phenomenon in the gas-to-power
industry, thereby moving the industry away from the prior status of
best endeavor supply and transportation basis.
"Accordingly, we will maintain the agreed gas pricing policy in order
to encourage new investments in gas supply and infrastructure
development. The implementation of the gas policy will culminate in a
willing buyer-will seller structure to establish a fully market-driven
environment," he added.
Stressing that adequate measures have been taken to resolve all labour
related issues in the sector, he said that contributions of relevant
MDAs in the realisation of the privatisation of the power sector was
critical.
While urging Nigerians to exercise patience with the government,
President Jonathan declared that better days are ahead in the power
sector.
Also speaking at the occasion, Vice President, Namadi Sambo maintained
that it is only the private sector investment in the power sector that
can guarantee satisfying Nigeria's yearning for stable power supply.
He said the new owners of the generating companies are expected to
build up capacity from the present levels of performance to additional
5,000 megawatts within a period of five years.
"It is noteworthy to state that the privatization of the power utility
is unique and different from previous privatization programmes in the
country, that of the power sector is driven by the need for efficiency
and investment rather than optimisation of proceeds to the government.
Moreover, only bidders' technical ability and financial capability
influenced outcomes," he stated.