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Sunday, September 1, 2013

‘How political interference threatens privatisation’

 
• NCP divided over lowering of rules for Interstate
THERE is apprehension in Abuja and the electricity industry that government’s interference, which impacted negatively on previous efforts at privatisation, is dogging the current exercise. 
  Stakeholders are worried that, but for government’s alleged interference in the process, the privatisation of 15 successor companies of the Power Holding Company of Nigeria (PHCN) would have been concluded last week.
  This delay in concluding  the process is adversely affecting the scorecard already given by international development partners who funded some aspects of the reforms in the power sector. They had called it “a world class model” because of its openness and adherence to all laid-down rules and agreements.
  A diplomat told The Guardian that “this hard-earned credibility of the nation’s privatisation process is being threatened by accusations of double-standards in government’s application of the rules of engagement. There were initial allegations that some bidders that failed at the technical evaluation stage and were not qualified for commercial evaluation were suddenly announced as preferred bidders.”
  Current attention is focused on the Enugu Electricity Distribution Company where some stakeholders are accusing the National Council on Privatisation (NCP) of desperately lowering the rules for Interstate Consortium, the preferred bidder which failed to pay up when the deadline ended on August 21.
 

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