Korean Firm Acquires Lagos Power Plant For $407 Million


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The sale of 70 per cent of the Egbin Power Plant in Lagos State to a Korean firm, KEPCO, at the sum of $ 407.3million has been approved by the National Council on Privatization (NCP).

The chairman of the Technical Committee of the NCP, Atedo Peterside made this disclosure while briefing State House correspondents after a meeting of the council chaired by Vice-President Namadi Sambo in Abuja on Thursday.

Asides the Egbin Power Plant, the sale of Omotosho Power Plant in Ondo State and the Olorunshogo Power Plant in Ogun State for a total of $166million to Chinese firms was approved.

Peterside said that the choice of the Chinese firms was informed by the belief that they would naturally understand them better.

He added that every power plant owned by the Power Holding Company of Nigeria (PHCN) now had a core investor, apart from the Afam Power Plant.

Peterside also disclosed that the worth of the Geregu Plant had risen to over $600million against its 2007 value of $549million when the Federal Government started negotiations to sell only 51 per cent of its equity to Amperium Consortium.

The Chief Executive Officer of Forte Oil, a partner of Amperium Consortium, Akin Akinfetiwa, presented a confirmation of payment of $33 million with local component of N519.12 million into the NCP account, being 25 per cent down payment for acquiring 51 per cent of Geregu power plant.

Even though the firm, which is owned by billionaire businessman Femi Otedola, had been given 15 days grace, it decided to pay the purchase sum immediately after the approval was granted.

Minister of Communications Technology, Mrs Omobola Johnson, announced that the NCP had approved five draft bills in respect of Inland Waterway; ports; railways; road sector; National Transport Commission for onward transmission to the Federal Executive Council (FEC) for further approval.

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