The Bureau of Public Enterprises (BPE) has revealed that it realized $300 million from the sales of Eleme Petrochemical Company Limited (EPCL) in 2006.BPE acting Director General, Abubakar Dikko made the disclosure at a public hearing held yesterday by the Ahmed Yetima-led House Committee on Privatisation and Commercialisation.

Dikko explained that Indorama which eventually emerged as the preferred bidder of the exercise, was building a $1.8 billion fertilizer and methanol plants, producing high quality products, establishing excellent public private partnership, and executing high corporate social responsibility and community development with 723 staff strength as at 29th February 2016.

According to the document submitted by the Bureau to the Committee, AMB/Future View Consortium submitted $3,241,241,447 financial proposal; CSFB/Foster Wheeler Consortium submitted $3,735,568.68 while FBN/Standard Bank Consortium submitted N117,000,000 ($883,685.80) in 2004.Dikko however noted that FBN/Standard Group Consortium was recommended to World Bank for selection on the basis of combined technical and financial evaluation score, on November 1.

Fielding question on the cancellation of the previous bidding in which Dangote/Transcorp Consortium quoted the highest bid with $201 million while Indorama quoted $121.5 million in 2005, he explained that the vice president who doubled as chairman in council, directed that both companies resubmit their bids because they fell below the reserved price.

He noted that at the final bid, Dangote submitted $135.02 million while Indorama submitted $215.088 million without liability.
According to him, the Bureau negotiated with Indorama to up its bid from $215,088,888 and finally agreed to pay $225 million and was confirmed as the preferred bidder. That was how the bidders were selected.

“The investor also provided evidence of its commitment to invest $150 million to revamp the company’s plants and facilities. The money was to be sourced from International Finance Corporation (IFC).”

The BPE further said that Indorama paid the $225 million, but noted that the evidence of payment were not attached.In the breakdown of the utilisation of the $300 million realised, Dikko disclosed that $225 million (75%) was for Indorama; $30 million (10%) was allocated to NNPC; $22.5 million for 7 communities), $7.5 million (2.5%) given to staff, while $15 million (5%) was retained by BPE on behalf of Federal Government.