INTERSTATE Electrics has proposed N41.66 billion for the upgrading of Enugu Electricity Distribution Plc and for the general management of the company over the next five years.
The Bureau of Public Enterprises (BPE) made this disclosure in a document, which places the company’s proposal above all other core investor in other distribution companies.
According to the BPE, Interstate Capital investment plans for the next five years beginning from takeover date, would cover investments to reduce technical, commercial and collection losses, and the deployment of pre-paid meters to eliminate the existing metering.
It also includes the expansion of the company’s network besides other investments necessary to efficiently operate the firm.
The BPE paper, which was being reanalysed yesterday by the agency’s experts, stressed that the technical loss investments will focus on rehabilitation, replacement and strengthening of network equipment as set out in the technical plan, while commercial loss investment will focus on increasing billing and process efficiency as set out in the Technical Plan.
“This is intended to bring quality and uninterrupted power to customers. The company will eliminate the metering gap in two years and provide meters to all new customers. Other investments will be aimed at increasing the operational efficiency of the Disco as indicated in the operational plan. Process efficiency and devised enterprise solutions will result in customer satisfaction”, the document added.
In what appears a process of gauging the capacities of the core investors preparatory to their imminent takeover of the companies, it was also revealed that the core investor for the Enugu distribution company had proposed N12.8billion for investments to reduce technical/system losses over the next five years.
The proposal was also adjudged exceptional.
A BPE chieftain added that “our fears over abilities of most core investors have been allayed with what has been paid so far. The problem with this kind of business is raising acquisition/equity funds. Once that is sorted out, you can be assured that working capital is not likely going to be a problem, as financial institutions, both foreign and local are easily disposed to funding such projects given their prospects”
Besides Interstates, other successful consortia are West Power and Gas, the preferred bidder for the Eko Distribution Company; NEDC/KEPCO, Ikeja Distribution Company; 4power Consortium, Port Harcourt Distribution Company; Vigeo Consortium, Benin Distribution Company; Aura Energy, Jos Distribution Company; Kann Consortium, Abuja Distribution Company; Integrated Energy Distribution and marketing Company, the preferred bidder for the Ibadan and Yola Distribution Companies; Sahelian Power, Kano Distribution Company; Transcorp/Woodrock Consortium, Ughelli Power Plc; Mainstream Energy Limited, Kanji Power Plc; and CMEC/EUAFRIC Energy JV, which made the part-payment for the acquisition of Sapele Power Plc.