BPE opens bids for technical consultants to monitor, manage power sector post-privatisation challenges

Nigeria’s Bureau of Public Enterprises (BPE) has opened bids for technical consultants to monitor and manage post-privatisation challenges in the power sector.

The bids opening which took place in Abuja Tuesday, October 24, 2017 is aimed at providing the BPE with external consultants to help put in place robust mechanisms to monitor and manage the issues facing the sector.

Alex Okoh, the director general of the privatization agency said the critical and complex nature of the sector requires it to seek the assistance of external consultants to help it monitor and manage the post privatization challenges the sector is facing.

“The Bureau’s role did not end with midwifing the privatising the power companies. Our mandate requires us to ensure the success of the privatisation through continuous monitoring of the enterprises for such periods as may be considered necessary and in line with the obligations covenanted in the agreements that the core investors and concessionaires signed with the FGN,” Okoh noted, adding that to address noticeable gaps of the past, the BPE has introduced a robust corporate governance framework for its representation of the FGN on the boards of enterprises in which the FGN retains some equity holding or shares, and a strict code of ethics which guides the rules of engagement with the enterprises has been implemented.

“In addition to these measures, the critical and complex nature of the power sector requires that BPE seeks the assistance of external consultants with the requisite experience and technical know-how to help put in place robust mechanisms to monitor and manage some of the post-privatisation challenges facing the sector,” he said.

The successful consultants will specifically help the BPE in monitoring the activities of the power generation and distribution companies and provide feedback to the government on the core investors’ adherence to the performance agreements signed with the government with the ultimate objective of ensuring that the power sector reforms deliver adequate, reliable, efficient and affordable power to Nigerians.

Okoh noted that the procurement process for technical consultants to help monitor the privatised power companies started in 2015 but stalled for two years, adding that the recommencement of this process is a clear demonstration of FGN’s resolve to discharge its monitoring responsibility for these enterprises for the benefit of all Nigerians.

He commended the patience of all the consulting firms that waited, believed in the process and submitted proposals is response to requests for proposal (RfP).

“At the end of today’s proceedings, it is our hope that at least four to six firms would emerge after the equalisation of the technical and financial results.

“Thereafter, results will be recommended to the NCP for approval. The Bureau will then commence negotiation of the contract terms with the firms that subsequently emerge from this process,” he said.

In his remark, M.K. Ahmed, the chairman, technical committee of the National Council on Privatisation (NCP) said following the approval of NCP in June 2017 to continue the procurement process, RfPs were issued to the pre-qualified firms on July 14, 2017 with a deadline for submission of the technical and financial bids on August 31, 2017. However, on request by prospective bidders, the deadline was extended by two weeks to a new date of 14th September, 2017.

The distribution companies and generation companies were distributed into six Lots in the RfP and consultants were permitted to submit proposals for all the lots but with a proviso that only one lot can be won. Furthermore, the consultants were requested to list their participation for the lots in order of preference.

At the deadline for the submission of technical and financial proposals, BPE received seventeen proposals, which were evaluated in the presence of the Department of State Security Service and the BPE Anti-Corruption Unit officials.

The ceremony also witnessed the opening of financial bids for five subsidiaries of the Nigerian Mining Corporation (NMC). The subsidiaries are Naraguta Bricks & Clay Company Limited, Jos; Maiduguri Bricks & Clay Products Limited, Maiduguri; Trrazzo Company Limited, Gurum, Jos; Kujama Quarry, Kaduna; and Gano Quarry, Kano State.