Transcorp Power Consortium and Quest Electricity Nigeria have won bid prices for the Afam Electricity Generation Company at N105.3 billion and Yola Electricity Distribution Company at N19 billion respectively.
The National Council on Privatisation announced that it approved Transcorp Power Consortium as the preferred bidder for the Afam Power Plc and Afam Three Fast Power Limited, and Quest Electricity Nigeria Limited as the preferred bidder for the re-privatized Yola Disco.
[READ MORE: PZ Cussons relaunches soap brand in desperate bid to re-capture market]
The Head, Public Communications, in the Bureau of Public Enterprises, Amina Othman, in a statement issued on Thursday, said the NCP approved the bids at its second 2019 meeting on Monday in Abuja.
The NCP is chaired by Vice-President Yemi Osinbajo. According to the NCP, the preferred bidder, Transcorp Power Consortium, plans to invest $350 million in the firm over a period of five years after taking over.
Background: The NCP had on April 12 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% shares in the Afam Electricity Generation Company.
The three consortia had earlier met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal.
Following the termination of the Share Purchase Agreement signed between Taleveras (the then preferred bidder) and the BPE in 2016, the NCP had on August 23, 2017, approved the privatization of the enterprise based on a strategy to be recommended by the transaction advisers.
Although the YEDC was successfully privatized and handed over to the core investor in 2013, it was repossessed by the Federal Government in 2015 after a force majeure was declared by the core investor, citing insecurity in the North-East region of the country.
[READ ALSO: Smile Communications fires back at those who claim it defaulted on $125 million loan]
The new successful bidders are expected to operate the generation and distribution companies in line with the objectives of the Federal Government as set out in the National Electric Power Policy.
It is expected that they will make necessary investments to improve generation and distribution networks, as well as customer service.
