Written by Sarah NEGEDU

Privatization: 19 firms jostle over Genco and Disco

Not less than 19 firms have indicated interest to acquire majority stakes in Afam Power Company and Yola Distribution Company, the Bureau of Public Enterprises, BPE, has disclosed.

According to the bureau, the submission of bids for the Expression of Interest for the two power companies which ended last week saw seven firms submitting bids to buy Afam, while 12 submitted for the Yola Disco.

The Head of Public Communications at the bureau, Amina Othman said renowned players in the power industry were among the companies that expressed interest in the two power firms which were carved out from the defunct Power Holding Company of Nigeria.

She stated that the evaluation committee earlier set up by the bureau to scrutinise the bids, was immediately after the expiration of the deadline, inaugurated by the Director of Energy at the BPE, Mr Yunana Malo, to begin work.

The request for the Expression of Interest in the companies was made public by the BPE on August 16.

It would be recalled that although Yola Distribution Company was successfully privatised and handed over to the core investor in 2013, a force majeure was declared in 2015 by the investor citing insecurity in the North East region of the country. Following this, the company was duly repossessed by the Federal Government.

On the other hand, the transaction for Afam Power, a generation company fell through, due to delay in signing the Gas Supply Agreement, GSA, and the Gas Transportation Agreement, GTA.

In 2017, the National Council on Privatization chaired by Vice-President Yemi Osinbajo, gave approval for a fresh transaction to privatize the two power companies.

 

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