Home Business News Five bidders jostle for Afam Power and Yola Electricity Distribution Company

Five bidders jostle for Afam Power and Yola Electricity Distribution Company


The Bureau of Public Enterprises has received financial and technical bids from five firms who are interested in purchasing the 51 percent stakes in Afam Power Plc and Yola Electricity Distribution Company.

According to the Head of Public Communications at the Bureau of Public Enterprises, Amina Othman, the bids were received from the prospective core-investors last week Friday, March 15, 2019, which was also the deadline for submission of bids.

One of the bidders pulled out: However, one of the bidding companies, Sandstream Nigeria, who offered to buy a stake in Yola Electricity Distribution Company, withdrew its bid after the company the company failed to include a bank guarantee in its proposal.

“A total of five bids were received by the BPE on Friday, March 15, 2019 – being the deadline for the submission of technical and financial proposals for the acquisition of the Yola Electricity Distribution Company and Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited) by prospective core-investors.

“Two firms – Quest Electricity Nigeria Limited and Sandstream Nigeria – submitted proposals to acquire the Yola Disco while DiamondStripes Consortium, Unicorn Power Generation Consortium and Transcorp Power, sought to acquire the Afam Genco.

“Sandstream submission was, however, found to be non-responsive as it failed to include a bank guarantee in line with the requirements in the Requests for Proposal.

“Accordingly, the representative of the firm took the bid back.”

The genesis of the bidding process

Approval for a fresh transaction to privatise the two power companies was given by the National Council on Privatisation in 2017. BPE published an expression of interest for the two companies in national newspapers on August 16, 2018.

A total of 19 firms had indicated interest to acquire the Afam Power Company and the Yola Distribution Company at the close of the submission of bids for the Expression of Interest at 1 pm on Tuesday, September 26, 2018. After evaluation of the EOIs, 11 firms qualified for the next stage but only the five were successful.

Evaluation Committee to decide the final bidders

The Director-General of BPE, Alex Okoh promised the highest level of integrity would be put into the evaluation of bids. He added that Evaluation Committee would meet immediately to discuss and finalise the scoring criteria before commencing the evaluation process which was expected to end on Thursday.

According to the report by Punch, 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, the BPE spokesperson added.


Please enter your comment!
Please enter your name here
Coronation Research

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Understanding Mutual Fund Fees

INSIGHT: Why you really should consider investing in mutual fund today

A Mutual Fund is a Trust or Company that pools money from many investors and invests in a specified class of securities such as stocks, bonds, real estate or a balanced mix of asset classes.
Rubies Bank

Rubies Bank – The Future is here

Rubies is a fully digital banking platform, offering zero fee banking targeted at millennials, young professionals, SMEs, quasi-financial institutions and FINTECH companies.
Ellah Lakes appoints new Managing Director, Ellah Lakes appoints Chuka Mordi, Ellah Lakes acquires Telluria Limited, Nigerian Stock Exchange NSE

NSE has placed these 34 companies on red alert

Authorities of the Nigerian Stock Exchange (NSE) has placed red alerts on some 34 quoted companies as a disciplinary measure for breaching some of its extant rules.