Nigeria offers to sell Egbin Power Plant to South Korea’s KEPCO for USD 407.3mn

By bne IntelliNews April 4, 2013

Nigeria’s privatisation agency has offered to sell 70% of Egbin Power Plant to KEPCO Energy Resources, KEPCO Energy Resources, a joint venture between South Korean utility firm Korea Electric Power Corp (KEPCO) and Nigeria’s Sahara Energy Group, for USD 407.3mn, Leadership daily reported. The Bureau of Public Enterprises (BPE) plans to sell another 27% of the plant through Initial Public Offer (IPO) at a later date, while the remaining 3% will be distributed to the3 plant’s workers.
KEPCO agreed in 2007 to buy a 51% stake in the 1,320MW Egbin Power Plant, which is based outside Nigeria's commercial hub Lagos, for USD 280mn, but disagreements over labour, electricity pricing and gas supplies stalled the deal.
Last week, the BPE offered to sell the 500MW Omotosho power plant in southwest Nigeria to state-owned China Machinery Engineering Corporation (CMEC), which recently completed an upgrade of the plant, for USD 217.5mn, of which USD 104.2mn would be offset against debts the government owes CMEC and a further USD 30.3mn would be kept for further work to be done by the Chinese company.

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