Business PHCN: Investors yet to make payments to BPE


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The Bureau of Public Enterprise (BPE) is still awaiting 75 per cent balance payment of the bid offer by the 14 investors in the successor firms of the Power Holding Company of Nigeria (PHCN). This is coming barely a day to the deadline for payment, due on the 21st of August, 2013..

Despite claims by the investor that payment has been made, the BPE reports that they were yet to receive payment as at the close of business yesterday. In compliance to the terms and conditions in the Request For Proposal (RFP), the Bureau has warned that there would be no extension for the payment.

According to the head, public communications of BPE, Joe Anichebe, “We have got several calls from the bidders that they have paid the remaining 75 percent of their bid offers, but as at now (15.57pm) our accounts department has not received any payment alert from our banks to suggest that any has paid.”

It would be recalled that all the preferred bidders for the 15 PHCN successor companies have earlier met the deadline for the payment of the mandatory 25 percent of the offer value of their bids as at the deadline date of March 21, 2013. The bureau had received $559,445,573.96 from 14 bidders for 15 successor companies.

He also informed that in line with the agreement reached with PHCN labour unions on December 12, 2012, the Federal Government had commenced payment of benefits due to the staff from August 1, 2013.

“As at Friday, August 16, a total of 20,304 of the 40,000 staff of PHCN have so far been cleared and paid their severance benefits totaling N119, 176, 731,492.88 kobo.

The payment, which is being handled by the Office of the Accountant General of the Federation, commenced on Thursday, August 1, 2013.

President Goodluck Jonathan revived the reform and privatization of the power sector with the launching of the Power Sector Reform Road-map in August 2010, as a major plank of the transformation agenda of his administration.
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