Update on the Privatization of PHCN Ibrahim Baba Gana Ag Director ( Electric Power)
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Transcript of Update on the Privatization of PHCN Ibrahim Baba Gana Ag Director ( Electric Power)
Overview
Purpose of this presentation
1. Provide a transaction update
2. Strategy to address the labour Issues of PHCN
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Transaction Timeline
Draft Industry Agreements Posted August 15, 2011
Deadline to confirm intention to bid, $20,000 fee due for purchase of RFP documents August 26, 2011
Issuance of RFP, Information Memorandum Documents September 01, 2011
Access to virtual Data Room September 01, 2011
Pre-Due Diligence Conference October 14, 2011
Opening of Physical Data Rooms October 24, 2011
Bidders’ Site Visits Nov 14- January 30, 2011
Transaction and Industry Review ConferenceNovember 28 and 29,
2011
Distribution of Final Bid Documents December 14, 2011
Generation Company Bids to be Submitted January 30, 2012
Distribution Company Bids to be Submitted February 13, 2012
Complete Bid Evaluation Process- Generation March 2, 2012
Complete Bid Evaluation Process- Distribution March 12, 2012
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Transaction Update
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Hydro Thermal Distribution0
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Firms Short ListedFirms Purchasing Bid Doc-uments
Short ListedFirms Purchasing Bid
DocumentsHydro 40 18Thermal 87 41Distribution 80 70Total 207 129
Virtual Data Physical Data Room
In the Virtual Data Room:There are now 427 individual users that have been invited
There has been a total of 38951 unique views of documents in the VRD
Documentation is still being uploaded to the VDR from what has been received in the field
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Physical Data Room & Site Visits
•The Physical Data Room commenced on October 24 2011
•The site visits commenced on November 14, 2011
•Despite the attempt by labor to interrupt process the site visits continued with zeal and vigor.
•We thank investors for their understanding and patience during both activities.
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labour Issues of PHCN
• To date, BPE and the FGN labor negotiating team have completed the following steps in resolving all power sector labor issues as presented during the first negotiating session in May, 2011
1. Resolution of all outstanding monetization issues through PHCN management;
2. Regularization of all Casual Workers hired before December 31, 2009 and subject to biometric verification;
3. Implementation of a 50% salary increase for all Employees effective June 1;
4. Organized and hosted a power privatization workshop in September to solicit union input regarding the future of the Nigerian power sector;
• Engaged Alexander Forbes to complete an actuarial valuation of the NEPA/PHCN Superannuation Fund as of June 30, 2004;
• Engaged Creative HR to conduct human resources study on PHCN ( Biometric, Payroll and Rightsizing)
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labour Issues of PHCN
• The successor companies shall be handed over to investors without labor issues or liabilities
• All PHCN workers that are left after the rationalization are rehired by the successor companies for a guaranteed minimum period of 6 months.
• FGN has set aside 2% of the shares to be allocated to the Workers
• The third and final round of negotiations with the workers of PHCN starts on November 30, 2011
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