Power distribution: Govs reject bid winner

October 19, 2012 25 Comments »
Power distribution: Govs reject bid winner

Edo, Ekiti, Ondo, Delta say no to Vigeo

From TAIWO AMODU, Abuja

The announcement of Vigeo Power Distribution as the successful bidder for the Benin Distribution Company by the Bureau of Public Enterprises, [BPE] was yesterday rejected by four state governors.

The Chairman of the Technical Committee, National Council on Privatisation, [NCP], Mr. Atedo Peterside, had on Tuesday during the opening of the commercial bids of the privatization of Power Holding Company of Nigeria, announced Vigeo as the successful bidder for the Benin Distribution Company, as against Southern Electricity Distribution Company.

The PBE chairman claimed it adopted Aggregate Technical Commercial and Collection loss Reduction as the basis for choosing the preferred bidder.

The governors of Edo, Delta, Ekiti and Ondo states are investors in the Southern Electricity Distribution Company that lost out in the bidding process.

But protesting the choice of the Vigeo Consortium by the Atedo Peterside-led Technical Committee, National Council on Privatisation, [NCP], Governors Adams Oshiomhole of Edo State, Emmanuel Uduaghan of Delta State and Kayode Fayemi of Ekiti State, told journalists that the process that led to the emergence of Vigeo Consortium was not transparent.

The states governors claimed that parameters such as technical competence, state participation, on the ground knowledge and financial competence were not met by Vigeo group.

The governors said: “States were allowed to participate in the privatization exercise after exhaustive deliberations and consequent recognition of the value that the states were uniquely positioned to add to the success of the post privatization utilities mostly in the troubled areas particularly, the Niger Delta Region. Some of these include Right of Way, rural electrification, legislation against theft and vandalism, policing to improve collection.

“Our states have invested heavily in power generation, transmission and distribution across the length and breadth of our respective states as we recognized the importance of power as the pre-condition for socio-economic growth and industrialization of our states.

“We participated and came out as the most technically competent and have the consortium that is most suited to the peculiarities of our region.’’

The governors warned that it would be difficult for Vigeo group to operate in the region, as they submitted that the terrain was strange to it.

The statement added: “In our region, you cannot succeed in operating the utility without the participation of the state governments, on ground knowledge and relationship with different stakeholders such as youths, communities, leadership. Our consortium possesses all these and no other does. Experts have said that Aggregate Technical Commercial and Collection losses as the singular basis for selecting the preferred bidder after qualifying technically was completely flawed. It is neither here nor there. It is simply arithmetic progression or statement which does not in any way demonstrate your ability to succeed post privatization.

“The technical qualification criteria also failed to take into consideration the peculiarities of the various discos, otherwise why would a company whose current service territory is 500 square kilometre be technically qualified to operate a 57,000 kilometre service territory in an area like the Niger Delta region without any local knowledge of this trouble area?’’ Asked by journalists if the governors were considering litigation to restrain the BPE and the successful bidder, Governor Adams Oshiomhole declared that the company would not be allowed to operate in the states.

“BPE just allocated to companies that have big figures, you don’t reduce power to patronage, something you give to the boys, who are connected. It is a big shame. The whole process was riddled with corruption. The winner isn’t welcomed into our states; we will not allow it to operate in our state. He may be the one to go to court.’’


25 Comments

  1. Biltopal October 19, 2012 at 3:25 am - Reply

    Who owns vigeo?

  2. Jeff October 19, 2012 at 4:02 am - Reply

    I like the Adams Oshiomole guy. Saying it the way it is. I wish the Governors in the South West find their balls before it gets too late.

  3. Owerri October 19, 2012 at 4:07 am - Reply

    Must state govts be involved in this privatisation exercise on PHCN? Left for me you politicians should give way on this project because you guys will politicise the system in the near future. The power projects in these states will be enslaved when u appoint ur friends and well wishers to man the outfit. Vigeo consortium remains the best answer for the public now. You governors should invest wisely with the state treasury on abundant solid mineral deposits in ur variouse enclave, stop looking for cheap avenues. Do not set the power project backward simply because u failed on the bidding, unnecessary stubbornness may erode progress in ur various states as a result of governor OSHIMOLE,s statement here. Each time Nigeria politician lost out on a particular context, the next avenue is to rush quickly to court, no atom or spirit of sportsmanship on them. You guys should emulate western politicians. Just look at a whole Adam OSHIMOLE making statements similar to that of area boys at the motor park junctions.

  4. Owerri October 19, 2012 at 4:37 am - Reply

    I,m yet to see any governor that wants to invest massively with his states treasury on the aboundoned solid minerals ie equivalent to oil and gas in terms of revenue earning. All were depending on federal allocation, 13% derivation else heaven will lose. Today is power project that was created yesterday by prof Nnaji, a man like you. The mineral deposit in your state Edo, is far ahead to that of Britain, Holland, Northern Irland put together. Your statement today portrays to me that you re very good in criticising and talking but you are not creative, if u are, u should have explored many avenues to make wealth for your people. I sincerely believe someone else will be on board next period to actualised those findings made above.

  5. ERNEST ANAXIMANDER October 19, 2012 at 5:40 am - Reply

    me thinks oshiomole and his ‘gang ‘ have a good point, but has opted to go about it the ojuelegba way than the track of rule of law. my suggestion to other s who lost their bid is to go the same way and reject the positions of the peterside ‘gang’

  6. Don October 19, 2012 at 7:18 am - Reply

    FUEL SAVER DEVICE FOR YOU VEHICLE AND GENERATORS AT N3,500. Call 08035112973

  7. chris October 19, 2012 at 7:46 am - Reply

    I find it difficult to differentiate Adams form a bus conductor each time he talks. He sounds wild and confrontational. If the bidding was faulty, let him go to court and should not ask the one that won to go to court. For waht? Because he is going to employ thuggery that has ruined Nigeria. I wish he would bring his children to disrupt Vigeo and no unsuspecting youths of Benin.

  8. UNANKA COLLINS October 19, 2012 at 8:16 am - Reply

    SO FINALLY WE ARE DOOMED, NO LIGHT AGAIN COME NEXT YEAR

  9. Williamskool October 19, 2012 at 9:16 am - Reply

    I actually see that the problem of most Nigerians is altitude.
    Chris and Owerri, you guys need to see a psychologist.
    dats all i can say for your ill-reverence to a constituted authority.

  10. akujuobi October 19, 2012 at 9:41 am - Reply

    I quite agree with my brother, Owerri.
    Federal Government divested because they were unable to manage it – in short, they failed. so if states are now allowed to dabble into supply, no doubt they will also fail just like the federal government did,
    I think it is high time we gave the private enterpreneurs chance to demonstrate their capabilities without creating artificial bottlenecks for them.
    There are many other areas that the state governments can invest their surplus funds in, one of the example is the solid minerals which my brother Owerri rightly mentioned especially for Edo State.
    Though Oshimole is a performing governor but we know him better as a unionist and we are all familiar with their language – gutter language.
    Action governor, thread softly o.

    .

  11. Joseph Becky October 19, 2012 at 11:03 am - Reply

    Chris and Owerri,where you people paid to attack the person to write in favour of the boy from Abuja who won the biddingh or what ? What exactly do you people know about power generation ? Can you differentiate between a 33kv line from that of 11kv ? Why do Nigerians like meddling with affairs they know nothing about ? Do you know how many rural electrification Oshiomole as carried out after being elected as governor ? Better keep shut if you have nothing to say than ridicule a man who knows is right from his left

  12. Aluku Aggo October 19, 2012 at 11:29 am - Reply

    Nigeria is really at cross roads.The four state Governors complained on the technical considerations they have put in place was not there when Federal govt managing the power?why did they not complained about it by then until when the privatisation will take place because they have lost out in the bidding process.It is pity for these Governors.

  13. Albert Moses October 19, 2012 at 1:31 pm - Reply

    What is the reason for this tackling of words on individual opinion. We have right to review the ideas of our leaders. The best thing is to investigate the owners of the company that won. Do they have all it takes to give us the best result? Can they transform the power sector into what is expected. I am writing from South Africa and for the past one month my family and I have been here for our holiday we have never seen light failure. Cant Nigeria take a stand and do things the right way. It is not a matter of the governors because they will not be there for eternity, who knows the mind set of the next person that will take the batton of leadership from them, to this projects.

  14. Hon. Chibuzo October 19, 2012 at 2:51 pm - Reply

    Please Oshomole should back off. If the BPE says its vigeo group then what he should do is to act as a watch dog whenever Vigeo starts distribution, if they dont perform well then he can go to court or even report to a constituted authority meant to be monitoring them. He should act as a Gentle man but if he thinks he cant wait for Vigeo to start, then he can go to court and challenge BPE’s action and not talking rubbish and threatening people who won a bid. ENOUGH OF ALL THIS POLITICS

  15. Henry Oku October 19, 2012 at 3:07 pm - Reply

    But Prof Bath Nnaji was made to resign as Minister of Power simply because his company,Geometric Power, had interest in d privation process. Left 4me,there’s noting wrong wit his company’s interest,but Arc Sambo,our V.P,influenced his dismissal for fear that he’ll use his influence as Minister to win d bid to his company, claiming Nnaji wud not be transparent. If that was Nnaji’s only offence,n in order to maintain d transparency,then no serving political office holder, including d Governors, shd have a hand in dat privatisation unless they’d wnt to resign first. That is simple logic.

  16. areaboy October 19, 2012 at 4:04 pm - Reply

    @Owerri was right. Govt should not meddle with power privatization for obvious reasons. Which rural electrification did Oshiomole provide? What was the source of his power? We should remove politics and emotions from the BPE process if our hope of a semblance of stable electricity will be achieved in this country.

  17. obafone October 19, 2012 at 5:25 pm - Reply

    is it not the same niger delter govs that bought ECONET WIRELES, the first GSM company in Nigeria and frustrated it. Now they have sold all shears.

  18. humphrey October 19, 2012 at 8:02 pm - Reply

    IS NIGERIA FOR SELL? States play significant part in businesses that affect their people in developed world. There is sence in what the Governors are saying and by “soludonizing” themselves into a mega unit, we stand a chance of having the likes of “German” companies in a short time. VIGEO and the likes should be better placed in Generation – BPE will not like the issue to drag long as like anyother institution in the world, nobody is above advice.

  19. Engr Anu ka Enyi October 19, 2012 at 8:41 pm - Reply

    Wow! Nigerians here we ar, it is a pity. I thought they said they ar bring in forign investors 2 invest in our power sector,now its a different talk all 2geda. Our power sector is nw a field where politicians play thier politice. No hope 4 nw

  20. oduduwa October 19, 2012 at 9:44 pm - Reply

    may god help us.

  21. Iyk October 19, 2012 at 10:30 pm - Reply

    This is the reason the good prof.(Nnaji) was swept aside;to make way for ‘the boys’ to get the jobs. You were all shouting for him to go,yet he was the only credible person in the bidding process,the only stumbling block against ‘the boys’, can you eat your cake and have it?

  22. dom October 19, 2012 at 10:44 pm - Reply

    just recycling the same kind of people, imgine the governors involved, will Nigeria be good? Oshimole Adams speaking like a rough agboro man at the park, so shameful of a governor.. no wonder Prof. Berth Nnaji throws in the towel… we see what will happen, people gave you support to be their governor but you cant give your support to other investors to operate in your area.. wicked governors…

  23. solomon October 19, 2012 at 10:54 pm - Reply

    No comment for now till 2015. when someone will tell me that have no shoes. for me to give him my vote again.
    I will tell him before i was blind but Now i can see.

  24. Dele Odugbemi October 20, 2012 at 12:06 am - Reply

    corruption is the name of Nigeria’s mother.

  25. Mr. Tony October 20, 2012 at 1:12 am - Reply

    hey guys this is not right….reason this. How would a state after spending a lot in electricity in the past years, buying transformers and making sure that a lot of rural areas is connected with electricity even if we don’t enjoy it. And BPE will just allocate Vigeo group just like that…its not right.

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