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New owners emerge for Afam Power Plc, Kaduna Distribution Company

By on August 2, 2013

Winners yesterday emerged in the bidding conducted for Afam Power Plc and Kaduna Distribution Company by Bureau of Public Enterprises, BPE.

The development is however, yet to be confirmed by the National Council on Privatisation, NCP.

The duo are two of the 18 successor companies carved out of Power Holding Company of Nigeria, PHCN.

After the bid conducted in Abuja, Taleveras Group emerged top bidders for Afam Power Plc with a $260.05 million bid, while  TES Power Ltd with a $222.9 million bid emerged as second preferred bidder for Afam Genco.

The two bidders attained the 75 percent minimum score and also submitted the required post-qualification security.

However, for the Kaduna Distribution Company, six companies, including Axis Power Distribution Ltd, NAHCO Consortium; INCAR Power Ltd, Northwest Power Ltd; LEDA Consortium Ltd; and Copper Belt Consortium Ltd, offered the highest aggregate technical commercial and collection loss reduction figure (ATC &C) in their bidding, with Northwest Power Ltd emerging highest with 29.26 percent.

This was followed by LEDA Consortium Ltd with 26.71 percent; NAHCO Consortium, 22.83 percent; INCAR Power Ltd, 22.73 percent; Copper Belt Consortium Ltd, 21.07 percent, while Axis Power Distribution Ltd offered 17.40 percent. The official winner will be announced by the NCP.

Speaking at the bid opening, Director General of the BPE, Mr. Benjamin Ezra Dikki, said:   “None of the bids received for Afam Power plant and Kaduna Disco met the minimum score of 750 marks required to pass the technical evaluation during the first round of sale of PHCN successor companies. So, the process was terminated as Nigeria will only accept the best to run its power sector.

“Thus, in accordance with the transaction framework approved by the National Council on Privatisation, NCP, and communicated to all bidders, BPE had to invite fresh bid documents”.

Eleven (11) proposals were received for Kaduna Disco and nine for Afam plant.