The failure of one of the 14 preferred bidders for the successor companies of the Power Holding Company of Nigeria (PHCN) to meet up with the payment of the balance of 75 percent of the bid sum, which expired two days ago, has elicited reactions from industry watchers.
“The fact that this company struggled to meet laid down agreements is a bad omen for things to come. It shows their lack of commitment and viability in the continuance of the process and their ultimate management of the facilities,” said Ademola Oshodi, project coordinator, Nigerian Natural Resource Charter.
The bidder for the Enugu distribution company, Interstate Electrics Limited, was the only private investor in the assets of PHCN that failed to meet the deadline set up by the Bureau of Public Enterprises (BPE).
Ayodele Oni, an energy law and policy expert and senior associate in top law firm, Banwo & Ighodalo, said: “Several arguments could be made, including national interest and legitimate expectation, among others, as far as the fairness of extending for the bidder when majority were able to bend over backwards.”
“Contractually and by virtue of Clause 4 of each Share Sale Agreement, both the BPE and each preferred bidder may agree to extend the Longstop Date, which is the date for payment. The morality and fairness of doing that is a different issue,” he added.
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