Working Paper 1:
Investor Road Show
prepared for:
Bureau of Public Enterprise
prepared by:
CPCS Transcom
International Limited
February 2011
Project No. 10120
PRIVATIZATION OF PHCN SUCCESSOR COMPANIES
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Acknowledgements
CPCS would like to acknowledge the kind assistance granted them by the Government of
Nigeria, specifically staff of the Bureau of Public Enterprises and the Power Holding
Company of Nigeria. Further, we wish to thank all those in Nigeria who gave so generously
of their time and share with us their insights into the future development of the power
system.
CPCS also expresses its special thanks to all stakeholders consulted during the writing of this
report. All mistakes and inaccuracies are ours.
CPCS Transcom International Limited
Alpha and Omega Chambers
Bridgetown, Barbados
+1 613 237 2500
ottawa@cpcstrans.com
PRIVATIZATION OF PHCN SUCCESSOR COMPANIES
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Table of Contents
1
2
Introduction ............................................................................................ 1
1.1
Authority for the Project ................................................................................... 1
1.2
Objective of This Working Paper ....................................................................... 2
Heading level 1 ....................................................................................... 3
2.1
3
Heading level 2 ............................................................................................... 3
2.1.1
Heading level 3 ..................................................................................... 3
2.1.2
Heading level 3 ..................................................................................... 3
Heading Level 1 ...................................................................................... 4
3.1
Heading Level 2............................................................................................... 4
3.1.1
4
Heading level 3 ..................................................................................... 4
Heading level 1 ....................................................................................... 5
4.1
Heading level 2 ............................................................................................... 5
4.2
Heading level 2 ............................................................................................... 5
4.2.1
Appendix A
Heading level 3 ..................................................................................... 5
List of Participants ......................... Error! Bookmark not defined.
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Acronyms / Abbreviation
ATC&C
BPE
CAPEX
CAPM
CPCS
Disco
DSO
EOI
EPSRA
ESI
FG
FGN
FMoP
GACN
GDP
Genco
GSAA
GTA
IM
IPP
IRR
MFL
MIGA
MO
MYTO
NCP
NEBTCO
NELMCO
NEPA
NEPP
NERC
NESI
NIPP
OCGT
ODRC
OPEX
PHCN
PPA
PRG
PSP
RFP
SC
SO
T&D
TCN
TUOS
UK
USA
WACC
WB
WP
<<Acronyms list should be adjusted as appropriate>>
Aggregate Technical, Commercial and Collection
Bureau of Public Enterprises
Capital Expenditure
Capital Asset Pricing Model
CPCS Transcom International Limited
Distribution Company
Domestic Gas Supply Obligation
Expression of Interest
Electric Power Sector Reform Act
Electricity Supply Industry
Federal Government
Federal Government of Nigeria
Federal Ministry of Power
Gas Aggregation Company of Nigeria
Gross Domestic Product
Generation Company
Gas Supply & Aggregation Agreement
Gas Transportation Agreement
Information Memorandum
Independent Power Producer
Internal Rate of Return
Station Marginal Loss Factor
Multilateral Investment Guarantee Agency
Market Operator
Multi Year Tariff Order
National Council on Privatisation
Nigeria Electricity Bulk Trading Co Ltd.
Nigeria Electricity Liability Management Company
National Electric Power Authority
National Electricity Power Policy
Nigerian Electricity Regulatory Commission
Nigerian Electricity Supply Industry
National Integrated Power Project
Open Cycle Gas Turbine
Optimized Depreciated Replacement Cost
Operating Expense
Power Holding Company of Nigeria
Power Purchase Agreement
Partial Risk Guarantee
Private Sector Participation
Request for Proposals
Successor Company
System Operator
Transmission & Distribution
Transmission Company of Nigeria
Transmission Use of System
United Kingdom
United States of America
Weight Average Cost of Capital
World Bank
Working Paper
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1
1
Introduction
Template Instruction:
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1.1
Do not change Section 1.1 – this will go into every WP.
All the spacing is included in the paragraph style setting. No need to create spaces
between paragraphs.
For tables – move the cursor to the table, go to “Design” tab, and select “CPCS Table
1”. This will format your table.
All tables and figures are to be named “Figure X-X”. Use “Insert caption” from the
“references” tab. OR you can simply copy the sample figure titles included below,
and update the numbers automatically by right-clicking the numbers and selecting
the “update field”.
For Appendix headings, use “Heading 8” from the Styles
In the following, sample bullet points, number bullets, figures, etc. are provided.
Authority for the Project
This project is carried out under a contract dated December 23, 2010 between the Bureau
of Public Enterprises (BPE) and CPCS Transcom International Limited (CPCS). The contract
is for the provision of professional advisory services from a consortium, led by CPCS, to BPE,
in support of the privatisation of Electricity Generation and Distribution Companies created
out of the Power Holding Company of Nigeria (PHCN).
The CPCS consortium includes:
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CPCS Transcom International Limited – a Canadian transaction advisory
services firm headquartered in Ottawa, Ontario, Canada.
Taylor De-Jongh – an investment banking firm based in New York, United State
(USA), with a project portfolio of over $75 billion.
Herbert Smith LLP – a leading international full service law firm based in London,
the United Kingdom (UK). Herbert Smith has completed projects in over 40
jurisdictions in Africa.
SNC-Lavalin International (Member of the SNC-Lavalin Group) – an international
engineering, construction and consulting services firm in the power sector. SNC
Lavalin is headquartered in Montreal, Canada.
Castalia – is an advisory services firm focusing on the improvement of infrastructure
assets through Private Sector Participation strategies. Castalia is headquartered in
Paris, France.
Economic Consulting Associates (ECA) – provides economic and regulatory
consulting services to industry and government. ECA is based in London with an
office in Thailand.
Benchmac & Ince – one of the leading Nigerian full service law firms providing
expertise in power sector regulation, contract documentation and negotiations.
Benchmac & Ince is based in Lagos.
KOO Partners – a Lagos based transaction advisory services focusing on accounting
and other financial due diligence services.
Mono Tech Input Limited – an indigenous electrical engineering services firm
providing services to the Federal Government of Nigeria. Mono Tech Input has its
head office in Abuja.
PRIVATIZATION OF PHCN SUCCESSOR COMPANIES
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1.2
Objective of This Working Paper
State the objective of this WP briefly and concisely.
2
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3
Heading level 1
Text
2.1
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Heading level 2
Foster choice and competition
Establish clear roles and responsibilities
 Federal Government of Nigeria (FGN) – policy direction, monitoring and
evaluation of implementation and performance
 Private sector – operations
 Regulatory Commission - licensing, technical & economic regulation)
2.1.1
Heading level 3
1. Commenced implementation of the gas master-plan strategic framework towards a
wholly competitive, market driven domestic gas sector by 2014
2. Put in place a transitional framework to facilitate gas access in the short to medium
term – particularly for the Power sector
3. Redefined the Commercial Framework for domestic gas supply to assure long run
sustainability of supply – pricing, contracting, etc.
4. Commenced implementation of a major gas grid infrastructure to enable flexible
delivery of high quality gas to Power and other end users
Figure 2-1: Title
Date
Participants
One-on-One
Interviews
Lagos
Jan 18-19
250
32
Dubai
Jan 24-25
100
12
London
Jan 27-28
240
16
Feb 1-2
86
8
Feb 10-11
92
6
770
74
Location
New York
Johannesburg
TOTAL
Source: XXX
2.1.2
Heading level 3
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Heading Level 1
3.1
Heading Level 2
3.1.1
Heading level 3
4
Figure 3-1: Bullets in a table
Location
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2
3
4
Second
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2
3
4
5
TOTAL
Source: XXX
Date
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Heading level 1
4.1
Heading level 2
4.2
Heading level 2
4.2.1
Heading level 3
5
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Appendix A
XXX
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