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NIGERIA: 5 Bidders Emerge Successful On The Race To Acquire Afam And Yola Power Company

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The Bureau of Public Enterprises on behalf of Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited) and Yola Electricity Distribution Company (YEDC) received financial and technical bids from five firms who are interested in purchasing the 51 per cent stakes in Afam Power Plc and Yola Electricity Distribution Company.

The said stake of the company had its 51 per cent stake up for sale since August 16, 2018, as published by the Bureau of Public Enterprise (BPE) in national newspapers.

A total of 19 firms expressed their interest in both companies as at the deadline for the bid on Tuesday, September 26, 2018. After assessing the EOIs of all the 19 companies, only 11 companies measured up for the next stage, whereas only 5 companies emerged successfully.

The successful companies; DiamondStripes Consortium, Unicorn Power Generation Consortium and Transcorp Power submitted a technical and financial bid to acquire the Afam Electricity Generation company while Quest Electricity Nigeria Limited and Sandstream Nigeria bid to acquire YEDC.

However, Sandstreams bid was declared unresponsive and subsequently withdrawn due to the omission of a bank guarantee which is a pre-requisite in the Request for Proposals (RfPs).

The director of General of BPE, Mr Alex Okoh, assured the successful Firms that the height of sincerity will be adopted in determining who emerges the owners of both companies.

He further stated that the Evaluation Committee will immediately commence the evaluation process which will end on Thursday.
The YEDC has not always been the government property but has been successfully privatized by a core investor, Integrated Energy Distribution and Marketing Company, in 2013.

However, due to a force majeure as stated by the company on 6 occasions (November 10, 2013, August 27, 2014, October 15, 2014, April 9, 2015, April 30, 2015, and May 13, 2015), it was repossessed by the Federal Government.

On the other hand, Afam Power Generation Company’s transaction was unsuccessful due to a lag in signing the Gas Supply Agreement (GSAA) and the Gas Transportation Agreement (GTA).

Nevertheless, the National Council on Privatization (NCP) gave the go-ahead to privatize the two power companies. The winning Firms will bear up the responsibility for operating the generation and distribution companies, making an important investment that will upgrade the generation and distribution networks, and customer service that tallies with the objectives of the Federal Government of Nigeria outlined in the National Electric Power Policy (NEPP).

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