Ndubuisi Francis in Abuja
The Bureau of Public Enterprises (BPE) is to privatise the ten remaining National Integrated Power Projects (NIPPs) this year BPE) in a bid to bolster power supply in the country.
The BPE Director General, Mr. Alex Okoh, who made the disclosure in Abuja, also revealed that the federal government-owned satellite communications operator- Nigerian Communications Satellite (NigComSat) is billed for privatisation to enhance its competitive edge.
Okoh spoke during the signing of a Memorandum of Understanding ( MoU) between the privatisation agency and an infrastructure credit enhancement firm – InfraCredit, which is to guarantee a longer tenor credit of up to 15 years for prospective investors in the NIPPs.
According to him, a committee to prepare the privatsation transaction of the NIPPs has since been constituted with a target of consummating the this year while hand over of the NIPPs to the eventual investors is projected for the first quarter of next year.
The BPE DG noted that the MoU with an infrastructure credit enhancement firm – InfraCredit was aimed at de- risking the power sector investment and attract competent investors with a view to avoiding the pitfalls of the power sector privatisation characterised by epileptic service delivery arising from short tenor financing.
InfraCredit, he stated, has committed to guaranteeing as much as N300 billion of financing for the power divestment transaction to investors, adding it believes that the development will boost the much needed sound corporate governance culture that would ensure investible resources and create sustainable value for the economy .
He said: ” In this regard, InfraCredit intends to partner with the Bureau to de-risk the financial environment, especially with regards to power sector investments. They have a target of achieving N300 billion worth of investments deals within three years,” Okoh.
In his remarks, the Managing Director of InfraCredit, Mr.Chinua Azubike expressed his organisation’s excitement to be associated with de-risking the financial sector in a bid to assist it perform its mandate..
Azulike said His firm, a triple AAA rated guaranteed company is owned by the Nigerian Sovereign Investment Authority ( NSIA) and equally backed by: GuarantCo- a private infrastructure development Group ; KfW Development Bank and the African Finance Corporation.