Investors to take over PHCN firms next year

Winners of the Power Holding Company of
Nigeria (PHCN) successor firms will have to
wait a while for their prizes.
Assets of the PHCN will be handed over to the
investors January, the Chairman, Presidential
Task Force on Power, Becks Dagogo-Jack, has
said.
Speaking during a Power Investors Summit in
Lagos, Dagogo-Jack said President Goodluck
Jonathan only presented shares certificates to
the 14 power generation and distribution
companies on October 1.
He said the handing over of assets to the
investors was delayed till next year because of
pending labour issues.
He said the government was aware of the
resentments that greeted the unbundling and
sale of PHCN, adding that it wanted to ensure
workers’ outstandings benefits are paid before
the investors take over.
He said: ‘The physical handing over of PHCN’s
assets to the investors will take place in
January 2014. What the government has done
was to present certificates only to the
investors. This will be preceded by the
declaration of the Transition Electricity Market
(TEM).
“The reason we are having a transition market
is to enable investors to test the market, make
adjustments where necessary and later develop
it. The decision to have a bridge transition
market was to enable the government and
investors to have a clear idea of what is going
to happen.”
Also, the Director, Infrastructure Department,
International Finance Corporation, Mr Bernard
Sheahan, said the institution has concluded
arrangements to provide about N1billion loan
for the 14 power firms.
“We hope to be financing a number of power
generation and distribution companies soon.
We are holding discussions with them to
provide long-term financing to encourage the
growth of the sector.In the last three months,
we have been holding discussions with the
government on implementation of some gas
projects, as well as the transmission aspect of
the sector,” he added.
According to him, the assets of PHCN are
bankable and suitable for long-term financing
initiative which the World Bank has prided
itself of.
“It is wrong to say the PHCN’s assets are old
and not financeable. We have discovered that
the assets are bankable, hence the decision to
finance the power firms as part of growth
strategies for Nigeria,” he added.
He said the companies have paid for the
assets, adding that the next stage for them is
to look for more funds from institutions such
as AfricanFinance Corporation(AFC),
International Finance Corporation (IFC), among
others.
Workers of the Benin Zone of the PHCN
yesterday found it difficult to collect their
September salaries and access their accounts
following alleged freezing of their accounts by
banks.
It was gathered that the workers were told by
bank officials that the decision to freeze their
accounts was to prevent hackers because of
the entitlements the workers were expecting
from the government.
The workers were told return for verification
before they could access their accounts.
Secretary of National Union of Electicity
Employees (NUEE), Benin Zone, Godwin
Etumonu, who confirmed the development to
The Nation said the banks should have
informed them before taking the step.
“It is sad that we cannot access our September
salaries paid by PHCN. Now we are stranded
and they have asked us to come personally.
What about those travelled or are on sick bed?”
he said.
Commending the placards on the gates of
PHCN, Benin Zonal Office with inscriptions
warning the investors to stay away, Etumonu,
said: “We will not allow them to come unless
they agreed to accept the liabilities the Federal
Government refuses to pay. The PHCN is still in
existence until all labour matters are
resolved.Over 5,000 casual workers who have
worked for over five to 10 years need to be
given full employment.”