Background

Niger Delta Power Holding Company Limited (‘NDPHC’) is a private limited liability company formed to oversee the development and construction of electricity generation facilities, together with associated infrastructure, under Nigeria’s National Integrated Power Plan (‘NIPP’).

NDPHC has overseen the development and construction of ten gas fired power plants representing 5,453 MW of generation capacity (of which 5,153 MW will be available for commercial operation at the time the privatisation process is scheduled to be completed), or slightly under half of the existing available capacity in the country, and is now seeking to privatise these.

Eight of the plants are open cycle gas turbine plants and two have been designed as combined cycle gas turbine plants, although installation of the second of two steam turbines will not have been completed at one of the combined cycle plants by the end of the privatisation process. Seven of the eight open cycle plants are capable of being converted to combined cycle plants.

Turbines at some of the plants have already been installed and commissioned and are already generating electricity and dispatching it to the grid. By the end of the privatisation process, subject to the comments on the combined cycle plant referred to above, it is anticipated that the plants, together with any associated infrastructure including connections to the electricity transmission system and the gas transmission system, will have been completed and commissioned and capable of operating at their full capacities.

Each of the plants will benefit from contracts including those for the purchase of all electricity generated, the supply of natural gas, the transmission of natural gas, and the transmission of the electricity dispatched.

NIPP

The National Electric Power Policy, which was approved in April 2001, expresses the determination of the Federal Government of Nigeria to reform the electric power sector and to modernize and expand the Nigerian Electricity Supply Industry using private sector funding. The Electric Power Sector Reform Act was enacted in 2005 to provide the legal framework …

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NDPHC

Niger Delta Power Holding Company Limited (‘NDPHC’) is a special purpose company owned by three tiers of the government tasked with the responsibility for implementation of the National Integrated Power Project (‘NIPP’). Each of the ten power generation assets that have been developed under the NIPP is owned by a wholly owned subsidiary of NDPHC. …

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Nigeria

Nigeria is a Federal Constitutional Republic comprising thirty six states and one Federal Capital Territory. Abuja is the capital of the Republic and Lagos is the largest city and the country’s commercial centre. Nigeria declared its independence from the United Kingdom on 1 October 1960 and established the Federal Republic on 1 October 1963. The …

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Nigerian Electricity Market

Electricity generation in Nigeria started in 1896 although it was not until 1929 that the first utility company, the Nigerian Electricity Supply Company was established. In the 1950s and 1960s the Nigerian government created the Electricity Corporation of Nigeria to control all existing diesel/coal fired isolated power plants across the country and the Niger Dams …

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