The BPE had earlier announced the sale of the plant to KEPCO in 2007, but unresolved labour issues and the change of government stalled the conclusion of the deal.
Our correspondent gathered that KEPCO was to pay $280m for 51 per cent stake in the plant and that the company had paid initial 10 per cent of the fee as an indication of the acceptance of the offer.
However, the suspension of the liberalisation of the power sector by late President Umaru Yar‘Ardua and some unresolved labour issues prevented the conclusion of the deal.
Our correspondent gathered that the BPE had since resumed discussions with KEPCO and that discussions were at an advance stage to finally hand over the power company to the firm.
Spokesman of the BPE, Mr. Chukwuma Nwokoh, confirmed to our correspondent that the BPE and the Federal Government were addressing some of the issues hindering the transfer of the power station to KEPCO.
He said, ”You know, the company was sold to them (KEPCO) in 2007, but the necessary agreements could not be signed for the transfer of Egbin to the firm for some reasons but the outstanding issues are being addressed and very soon we believe that the deal will be concluded.”
The Egbin power plant is the biggest power station in the country with an installed capacity of 1,320 megawatts of electricity.
The Federal Government recently inaugurated the power sector road map and one of the key issues in the document is government‘s plan to sell at least 51 per cent stake in most of the electricity companies, otherwise known as successor companies.
It is expected that by 2011, most of the 11 distribution companies would have been sold, while some of the three thermal power stations would also have gone to the highest bidders.
Chairman, Presidential Taskforce on Power, Prof. Barth Nnaji, had said that some of the successor companies of PHCN might be on offer by the end of the year.
The BPE had already invited bids for management contracts for the Transmission Company of Nigeria, but the sale of 51 per cent of government‘s stake in electricity distribution and generation companies could commence in December.
Nnaji, who spoke with our correspondent on the telephone recently, said that the taskforce was taking every necessary step to ensure that bidding for the firms commenced by year end.
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