FG Hands Over Afam Power Plant to Transcorp

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The Federal Government has handed over the Afam Power Plant to Transcorp Power Consortium after it emerged the preferred bidder of the power asset, with a bid offer of N105 billion.

The Director-General, Bureau of Public Enterprises, Alex Okoh on Thursday handed over the power plant to the preferred bidder on behalf of the Federal Government in Abuja.

Speaking at the event on Thursday in Abuja, Okoh explained that after the previous failed attempt to privatise Afam Power Plc and the approval granted by NCP for the recommencement of a new process, the BPE commenced a competitive privatisation process for the plant.

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According to him, it, culminated in Transcorp Power Consortium emerging as the preferred bidder with a combined offer of N105.3bn.

The BPE Director General, Mr Alex Okoh, said that the handing over of the power plant to Transcorp was a significant milestone in the process of the privatisation of the last successor generation company of the defunct Power Holding Company of Nigeria (PHCN). Okoh also noted that it was a culmination of several years of painstaking efforts by the National Council on Privatisation (NCP) and the BPE in the face of daunting challenges.

The BPE also announced that the lingering tussle over who owns the Aba ring-fenced area between Geometric Power and Interstate Electric (owners of the Enugu Electricity Distribution Company) had finally been laid to rest with the signing of the Asset Sale Agreement between the two firms.

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Earlier this month, The PUNCH reported the signing ceremony for the official sale of the Afam Power Plant during an event that was held at the Office of the Vice President in Abuja

In October last year, the National Council on Privatisation 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).

This was one of the major decisions taken by the council, chaired by the Vice President and Chairman of Council, Prof. Yemi Osinbajo, at the second meeting of the NCP for 2019 on October 14, 2019.

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He said Transcorp Power Consortium paid cash of 25 per cent of the bid amount on Thursday, November 26, 2020, which was a condition precedent to the current activity of handing over.

The President, Transcorp Power Consortium, Tony Elumelu, expressed gratitude to Federal Government and gave assurance to work with the state government, host community and residents to fast track development in the area.

By Peace Obi

More Power Sector News in Nigeria on Orient Energy Review.


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