FG okays N105.3bn Afam Power sale to Transcorp consortium

The National Council on Privatisation (NCP) has approved Transcorp Power Consortium as the preferred bidder for the Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited) with a bid price of N105.3bn (about $343.6m). Diamond Stripes Consortium is approved as the reserve bidder with a price of N102.3bn.

This was one of the major decisions taken by the council, chaired by the vice president and chairman of council, Yemi Osinbajo at the 2nd meeting of the NCP for 2019 held at the Presidential Villa, Aso Rock, Abuja on Monday, October 14, 2019.

A statement by spokesperson for the Bureau of Public Enterprises (BPE), Amina Tukur Othman, noted that the winning bid of $343.6m for the power plant is above the winning bid of $265m in the previous privatisation transaction conducted in 2013; and that Transcorp Power Consortium (preferred bidder) plans to invest $350m in the firm over a period of five years after take over.

Council also approved Quest Electricity Nigeria Limited as the preferred bidder for the re-privatised Yola Electricity Distribution Company (YEDC) with a bid price of N19bn (about $62m) which is above the $59m paid by the previous core investor in 2013.

It would be recalled that council at its first meeting for 2019, held on Friday, April 12, 2019 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), having met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal (RfPs).

It also directed Quest Electric Nigeria Limited to proceed to the financial bids opening stage for the re-privatisation of the Yola Electricity Distribution Company (YEDC).