GENCOs, DISCOs..now FG to sell Power Transmission for over $20 billion

NIGERIA was considering offers of more than $20 billion (R220.1bn) for the assets of its national electricity transmission company as it struggles to provide adequate power to Africa’s largest economy, Power Minister Chinedu Nebo said on Friday.

The sale of the state-owned Transmission Company of Nigeria (TCN) could start “in a few years”, Nebo said in a television interview in Abuja.

The government would also focus on developing renewable energy projects to diversify its supply, the minister said.

“The interest now for transmission is over $20bn. People are coming from everywhere.”

Transmission is the only segment of the power industry that the government still controls as it seeks to curb regular blackouts in Africa’s largest oil producer.

The country generates about a 10th of the power that South Africa does even though its population of about 170 million is more than three times larger.

President Goodluck Jonathan’s government is spending $3.5bn to boost transmission capacity by 50 percent. Nigeria has sold 15 state-owned generation and distribution companies to raise funds in the past year.

TCN’s transmission capacity was 5 500 megawatts compared with an installed generation capacity of 8 000MW, Nebo said. If generation companies were operating at full bore, the grid would be unable to transmit all of the power to homes.

The government wanted transmission capacity to exceed 6 000MW by 2016, Nebo said.
http://www.iol.co.za/business/international/nigerian-power-transmission-draws-bids-1.1751257#.VBf_CRZfyhU