FG approves financial bids for Afam power plant acquisition

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The National Council on Privatisation (NCP) has granted approval to Diamond Stripes Consortium, Transcorp Power Consortium and Unicorn Consortium to proceed to the financial bids opening stage for the acquisition of 100 percent shares in the Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited).

The NCP took the decision at its first meeting for 2019, held at the Presidential Villa, Aso Rock, Abuja, at the weekend.

The Council noted that the two consortia met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal (RfPs).

Other decisions taken by the Council include; the approval for Quest Electric Nigeria Limited to proceed  to the financial bids opening stage for the re-privatisation of the Yola Electricity Distribution Company (YEDC); the appointment of Lead Capital Consortium as Financial Adviser for the restructuring, recapitalisation and partial privatisation of the Bank of Agriculture (BOA); delisting of Transcorp Hilton Hotel, Abuja from post Privatisation monitoring by the BPE; the privatization of the Nigeria Communication Satellite Limited (NIGCOMSAT) through a strategic core investor sale and commencement of the process of listing it in the schedule of the Public Enterprises (Privatisation& Commercialisation) Act 1999; and the appointment of Vesta Healthcare Partners as consultant to carry out a diagnostic review of the Nigerian Health Sector.

Recall that the privatization of Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited) could not be concluded during the first round of the power privatization in 2013 due to issues stemming from gas supply to the plant.

Following the termination of the Share Purchase Agreement (SPA) signed between Taleveras (the then Preferred  Bidder) and BPE in 2016, Council at its 1st Meeting of 2107 held on 22nd and 23rd August 2017, approved the privatization of the enterprise based on a strategy to be recommended by the Transaction Advisers.

For the YEDC, although it was successfully privatized and handed over to the core investor in 2013, a force majeure was declared in 2015 by the core investor citing insecurity in the North-East region of the country. Following this, the company was duly repossessed by the Federal Government.

It is expected that the successful bidders will be responsible for operating the generation and distribution companies, making the necessary investments to improve the generation and distribution networks and customer service in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP).

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