BPE, foreign firm collaborate on investment opportunities in Nigeria

The Bureau of Public Enterprises (BPE) is set to collaborate with Jindal Steel & Power Group a leading world player in steel, mines and infrastructure in its areas of interest to invest in Nigeria.

Director General of the reform, concession and privatisation agency, Mr Alex A. Okoh disclosed that a joint committee to work out the modalities for the exercise has been set up with the Director, Industries and Services at the BPE, Mr Yunana Jackdel Malo heading the BPE’s team while Mr Mukesh Sharma will head the Jindal Steel & Power Group’s team.

Speaking when he received a delegation from the group, led by its Vice Chairman, Mr V. R. Sharma, Okoh said there was a lot of potential in the country in the areas the group is interested in.

He cited among others, the planned concession of the Zungeru Power Plant which has the capacity to generate about 700 Megawatts when operational and said that already, the Federal Government had procured the services of a Transaction Adviser for its eventual concession.

The Director General revealed that the planned concession of the Zungeru Dam would be modelled after that of the Kainji and Jebba Dams’ concession and that the successful concessionaire would handle it for a period of 30 years.

On another area of interest for the group(steel), Okoh noted that though three Steel Rolling Companies in the country-Jos, Katsina and Osogbo had been privatised, they were not living up to expectations and that any effort to rev up the sector would be supported.

He also informed the investors that power which is their main strong hold has openings in the country as the Federal Government was on the verge of privatising five (5) of its ten National Integrated Power Plants (NIPPs) which have the combined capacity to generate between 2,300-2,500 megawatts.

On the Transmission Company of Nigeria (TCN), the Director General said despite the unbundling of the power sector by the Federal Government in 2013, resulting in 11 Power Distribution Companies and six Generation Companies, TCN was still being retained by the Federal Government but that plans were underway to unbundle it for more efficiency.

Earlier, the Vice Chairman of the Group, Mr. V. R. Sharma had said the courtesy visit was to afford the group the opportunity to have firsthand information on areas of investment in Nigeria.

He noted that Nigeria was the largest economy in Africa and his group intends to cash in on the vast potentials to invest in Mines, Hydro Power and other areas of interest.

The Group was accompanied on the courtesy visit by Ambassador Ahmed Sule, Nigeria’s High Commissioner to Bangladesh, Nepal and Sri Lanka. (VON)