Home Business FG approves 100% acquisition of Afam Genco

FG approves 100% acquisition of Afam Genco


By Folasade Akpan

Abuja – The Federal Government has granted approval to three consortia to participate in the financial bids opening for the acquisition of 100 per cent shares in Afam Electricity Generation Company.

A statement by Amina Othman, Head, Public Communications, Bureau of Public Enterprises (BPE) on Monday in Abuja, said that the National Council on Privatisation (NCP) gave the approval after its first meeting in 2019, held on April 12.

The companies were Diamond Stripes Consortium, Transcorp Power Consortium and Unicorn Consortium.

According to her, the three consortia met the benchmark score of 750 points after evaluation in accordance with the criteria set out in the Requests for Proposal (RfPs).

She said that other decisions taken by the council included approval for Quest Electric Nigeria Limited to proceed to the financial bids opening stage for the re-privatisation of the Yola Electricity Distribution Company (YEDC).

It also approved the appointment of Lead Capital Consortium as Financial Adviser for the restructuring, recapitalisation, and partial privatisation of the Bank of Agriculture (BOA).

The council appointed Vesta Healthcare Partners as consultants to carry out diagnostic review of the Nigerian Health Secto.

It delisted Transcorp Hilton Hotel, Abuja from post Privatisation monitoring by the BPE.

Also decided on was the privatisation of the Nigeria Communication Satellite Limited (NIGCOMSAT) through a strategic core investor sale and commencement of the process of listing it in the schedule of the Public Enterprises (Privatisation& Commercialisation) Act 1999.

Othman said that the privatisation of Afam Electricity Generation Company, which encapsulates, Adam Power Plc and Afam Three Fast Power Limited, could not be concluded during the first round of the power privatisation in 2013 due to issues stemming from gas supply to the plant.

“Following the termination of the Share Purchase Agreement (SPA) signed between Taleveras (the then Preferred Bidder) and BPE in 2016, council at its first meeting of 2017 held on August 22 and 23, approved the privatisation of the enterprise based on a strategy to be recommended by the Transaction Advisers.

“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,” she said.

According to her, it is expected that the successful bidders will be responsible for operating the generation and distribution companies.

She said they would also make the necessary investments to improve the generation and distribution networks and customer service in line with the objectives of the federal government set out in the National Electric Power Policy (NEPP).

The BPE was created through the Public Enterprises (Privatisation and Commercialisation) Act 1999, to diversify the economy and strengthen the private sector as Nigeria’s engine of growth and economic driver. (NAN)

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