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BPE set to resell Yola Disco, Afam Genco amid investors’ apathy

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Electricity substation

Effort by the Bureau of Public Enterprises (BPE) to sell the Yola Electricity Distribution Company (YEDC) and Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited), has met with investors apathy.

The BPE received only five bids for the firms as at Friday, March 15, 2019, being the deadline for submission of technical and financial proposals for their acquisition by prospective core-investors.

A statement issued by BPE disclosed that two firms-Quest Electricity Nigeria Limited and Sandstream Nigeria, submitted proposals for Yola Disco, while Diamond Stripes Consortium, Unicorn Power Generation Consortium and Transcorp Power, indicated interest to acquire Afam Genco.

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Sandstream’s submission was however found to be non-responsive, as it failed to include a bank guarantee in line with requirements in Requests for Proposals (RfPs), which led to a withdrawal of the bid by its representative.

Speaking at the event, Director General of BPE, Alex A. Okoh, assured all bidders that evaluation of their bids would be subjected to an integrity test that would culminate in the financial bids opening of successful bidders.

Okoh said the Evaluation Committee would meet immediately to discuss and finalise the scoring criteria before the evaluation process on Monday, March 18, 2019 (yesterday) and would end on Thursday, March 21, 2109.

No fewer than 19 firms had previously indicated interest in acquiring the Afam Power Company and YEDC, which the Federal Government offered for sale at the close of submission of bids for Expression of Interest (EOIs) by 1 pm on Tuesday, September 26, 2018.

The BPE published request for EOIs in the two companies in national newspapers on August 16, 2018 and after their evaluation, 11 firms qualified for the next stage, but only the five were successful.

Although the YEDC was successfully privatised and handed over to the core investor in 2013, it declared a force majeure in 2015, citing security concerns in the Northeast region.

Following this, the Federal Government repossessed the company, but the transaction for Afam Power Generation Company fell through due to delay in signing the Gas Supply Agreement (GSAA) and Gas Transportation Agreement (GTA).

In 2017, the National Council on Privatisation (NCP) approved a fresh transaction to sell the two power companies.

The successful bidders are expected to operate the companies, making necessary investments to improve their generation and distribution networks, as well as customer service in line with Federal Government’s objectives as set out in the National Electric Power Policy (NEPP).

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Afam GencoYola Disco
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