Damilola Shittu – Abuja
The Federal Government has given its nod to three firms to proceed with the financial bids opening in the bid to acquire Afam Power Plc, an electricity generation company.
It has also given approval to one firm, Quest Electric Nigeria Limited, to proceed with financial bid opening for Yola Power Plc, an electricity distribution company covering the North-eastern part of the country.
Head of Public Communications at the Bureau of Public Enterprises, Amina Othman, disclosed these in a statement made available to our correspondent in Abuja on Monday.
According to Othman, the National Council on Privatisation chaired by the Vice-President, Prof Yemi Osinbajo, gave the approvals at its first meeting in 2019 in Abuja last week.
Another major decision taken by the council was the decision to put up Nigeria Communications Satellite Limited, operator of Nigeria’s communications satellite, for privatisation through a strategic core investor sale.
A major characteristic of the decision on Afam Power Plc is the offering of 100 per cent equity to the prospective core investor. Government had retained about 40 per cent stake in the other generation and distribution companies that were earlier sold by the government in 2013.
Othman said, “The NCP has 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 per cent shares in the Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited).
“Rising from its first Meeting for 2019, held on Friday, April 12, 2019 at the Presidential Villa, Aso Rock, Abuja, council noted that the three consortia met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal.”
Other decisions taken by the Council include approval for Quest Electric Nigeria Limited to proceed to the financial bids opening stage for the reprivatisation of the Yola Electricity Distribution Company.
The council also approved the appointment of Lead Capital Consortium as Financial Adviser for the restructuring, recapitalisation and partial privatisation of the Bank of Agriculture.
It also delisted Transcorp Hilton Hotel, Abuja from post Privatisation monitoring by the BPE as well as gave approval for the appointment of Vesta Healthcare Partners as consultant to carry out a diagnostic review of the Nigerian health sector.
The privatisation of Afam Electricity Generation Company could not be concluded during the first round of the power privatisation in 2013 due to issues stemming from gas supply to the plant.
For the YEDC, although it was successfully privatised and handed over to the core investor in 2013, a force majeure was declared in 2015 by the core investor citing insecurity in the North-East region of the country.
Following this, the company was duly repossessed by the Federal Government.