The Bureau of Public Enterprises (BPE), Nigeria, confirmed that it has received 25% bid payment from a consortium of Korea Electric Power Corporation (KEPCO) and New Electricity Distribution Company (NEDC).
The consortium has paid $32.7m, which constitutes 25% of the $131m bid for the purchase of assets of Power Holding Company of Nigeria (PHCN). The consortium has bid for the purchase of Ikeja Distribution Company in Lagos.
The government had earlier sought bids to sell the resulting generation and distribution companies that were created from the unbundling of PHCN.
KEPCO/NEDC consortium has partnered with Sahara Energy for the purchase of the distribution company.
The 25% of the bid payment has followed the signature of various agreements by bidders to purchase the assets of PHCN from the government.These deals will gradually result in the take-over of the companies.
To conclude the transaction, preferred bidders are required to pay the remaining 75% cost of the purchase within six months of signing the sale and purchase agreement.
However, the government warned that those bidders failing to make the payment within the mandated timelines would lose the assets to the next preferred bidder.