Three foreign firms are bidding to be appointed the management contractor for Transmission Company of Nigeria. Transysco is one of the 18 firms carved out of the former National Electric Power Authority.

The firms in the bid are ESB International of Ireland, Power Grid Corporation of India and Manitoba Hydro International of Canada. The Head, Public Communications, Bureau of Public Enterprises, Mr. Chigbo Anichebe, in a statement in Abuja on Tuesday, said the National Council on Privatisation had approved the opening of the financial bids of the three firms at its inaugural meeting.

President Umar Yar’Adua inaugurated the council, which is headed by Vice-President Goodluck Jonathan, at the presidential villa on Tuesday. The council had not been in place since the sack of the former council headed by former Vice-President, Atiku Abubakar, towards the end of 2006. The situation forced the BPE to seek approvals directly from the former President, Chief Olusegun Obasanjo. The approval for the opening of the financial bids for TCN was among the first decisions by the NCP after its reconstitution and inauguration.

The unbundling of NEPA (Power Holding Company Limited) resulted in the creation of six generation, one transmission and eleven distribution companies. Under the Federal Government’s power sector reform plan, the generating and distribution companies are to be privatised either through core investor sale or concession, while the TCN is to remain as the government’s asset. Anichebe explained that the management contract was chosen as the preferred mode of privatisation of TCN in line with global best practices.

He said that the contract would run for an initial three-year period. He explained, “This is because TCN is a natural monopoly that will wheel and facilitate access to generation and distribution companies. “Secondly, TCN would require significant financial support from government to enable it fund infrastructural expansion and capacity development of the sector." The BPE had in February 2006 advertised for a management contractor in both local and international publications.This time, eight Expressions of Interest were received by the BPE at the deadline for submission of applications.

These were from Terna Rete Elettrica Nazionale (Italy); ESB International of Ireland; Alpha Consortium Limited (Nigeria); Power Grid Corporation of India; Gungor Elektrik (Turkey); Manitoba Hydro International of Canada; ABB ELS (Nigeria); and Nsquare Integrated Electric (Nigeria).