The privatization of Port Harcourt Electricity Company (PHED) is part of an ongoing program of infrastructure improvement that will help Nigeria’s economy to grow and the country to become more competitive. By turning PHED over to private ownership the company will be released from the constraints that stifled its growth as a state-owned organization.
PHED will be run by 4 Power Consortium. This is a group of 9 investors that includes:
Lilleker Brothers Ltd. is a leading engineering company which offers a wide range services incorporating all aspects of mechanical and electrical engineering, transmission lines, water treatment and trunk lines, which also includes the construction of buildings and highway maintenance;
Taleveras Group of Companies Limited, a wholly-owned Nigerian company, with a consolidated global turnover in excess of $3B offering strategic solutions in Energy, Power and Construction services;
Income Electrix Limited, an indigenous engineering services company with over 20 years experience in providing end-to-end power systems solutions;
Calcutta Electricity Supply Company (CESC), which has proven experience in running utilities;
Skyview Power Technologies Limited an engineering services company providing Mechanical and Electrical works, transmission line network, sales and services of transformers, electric cables, project management;
The Akwa Ibom Investment and Industrial Promotion Council, (AKIIPOC), is responsible for driving the Akwa Ibom State Government investment and industrial promotion initiatives;
Bayelsa Electricity Company Limited, registered by the Bayelsa State Government to generate electricity;
First Independent Power Company Nigeria, one of the 3 Rivers State Government owned IPPs. It was registered to carry on the business of the provision and sale of power or ancillary services in both the rural and urban areas;
Paradise Power Nigeria Limited, a company registered by the Cross River State Government to generate and distribute electricity.
4 Power Consortium was selected from interested companies by the Bureau of Public Enterprise (BPE) after a thorough bidding process. 4 Power Consortium was considered to have both the technical expertise and the commercial credentials necessary for transforming PHED.
The company’s core functions will remain as they were when it was a state-owned company. In other words, it will continue to distribute electricity, maintain overhead and underground lines, electricity poles, telecommunications equipment and metering systems.
It will serve the states of Akwa Ibom, Bayelsa, Cross Rivers, Rivers and parts of Dalta States in Nigeria’s industrial South-south Zone.
The reinvention of PHED as a privately-operated company will help Nigeria take greater advantage of its natural resources and the entrepreneurial energy of its people. As it does so, economic growth and industrial demand will be driven forward, and with it the demand for more power. To avoid the unnecessary expense and inconvenience of having to supplement their inadequate existing power supply, customers have already indicated that they are ready to pay higher rates in exchange for a reliable service and plentiful supply.
Given this market environment, PHED offers investors the potential for long-term returns.
We will be providing analysts and investors with ongoing information as PHED continues its transformation from state-owned organization to privately-run enterprise. To register your interest in PHED and to receive regular information updates, in the first instance please contact us via our contact form, here >