Update on the Privatization of PHCN

Ibrahim Baba GanaAg Director ( Electric Power)

November 2011

Overview

Purpose of this presentation

1. Provide a transaction update

2. Strategy to address the labour Issues of PHCN

2

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

4

Hydro Thermal Distribution0

102030405060708090

100

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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Thank you