Abdusalami Abubakar’s firm wins bid for power companies

Integrated Energy Distribution and Marketing Company, a firm owned by former Head of State, Abdusalami Abubakar on Tuesday emerged the core investor of the Eko, Ikeja, Ibadan and Yola electricity distribution companies.

Meanwhile, the Federal Government raked in N197.25billion as proceeds from the sale of its 60 per cent stake in 10 out of the 11 electricity distribution companies in the unbundled Power Holding Company of Nigeria.

Chairman, Technical Committee on National Council on Privatization, Mr. Atedo Peterside, made this disclosure in Abuja during opening of the commercial bids for the privatization of PHCN successor distribution companies.

In the case of Kaduna Distribution Company, he noted that “none of the two bids received for company met the technical requirements.

According to him, the Bureau of Public Enterprise will invite fresh bids from all the pre-qualified bidders, in accordance with the ‘Plan’ approved by the NCP in respect of the privatization of any unsold successor company.

“Plan B entails inviting fresh bids from all the shortlisted bidders that paid the required $20,000 fee for the bid documents,” he said.

Peterside, who presided over the bidding process, explained that there was an adoption of Aggregate Technical, Commercial and Collection (ATC&C) loss Reduction for the choice of the core investors.

He said, “I wish to comment on the choice of the ATC&C loss reduction proposal as a basis. For core investor selection. The use of this method for the selection of core investors for distribution companies is a clear departure from the NCP’s usual practice of awarding companies to the bidder who makes the highest financial offer to purchase an asset after being technically qualified.

“Furthermore, ATC&C loss level will provide Nigerian consumers and other stakeholders with specific parameters with which to measure the outcome of the power sector reform and privatization.”

From the bidding process, the Integrated Energy Distribution and Marketing Limited emerged the core investor for the distribution company with 22.51 per cent ATC&C, while KEPCO offered 21. 43 per cent.

Abubakar is the Chairman of Integrated Energy Distribution and Marketing Limited, the same firm that won the bid for Eko Distribution Company with 21.43 per cent ATC&C while KEPCO offered 20.43 per cent.

 

 

 

 

 

Source: The Nation