FG, investors open financial bids for Afam Power, Yola Disco

By Oke Peter

The Federal Government has invited four firms for financial bids opening for Afam Power Plc, an electricity generation company, and Yola Electricity Distribution Company in Abuja on Tuesday (today).

Three firms – Diamond Stripes Consortium, Transcorp Power Consortium and Unicorn Consortium – are expected to slug it out in the bid to acquire 100 per cent shares in the Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited).

On the other hand, Quest Electric Nigeria Limited is the only company that had been shortlisted to proceed with the financial bid opening for Yola Power Plc, an electricity distribution company covering the North-eastern part of the country.

The National Council on Privatisation chaired by Vice President Yemi Osinbajo had, at its meeting on April 12, given a nod to the four firms to proceed with the financial bids opening for the two remaining companies carved out from the defunct Power Holding Company of Nigeria.

Subsequently, the Bureau of Public Enterprises fixed Tuesday for the financial bid opening for the two companies. The Head of Public Communications at BPE, Amina Othman, confirmed that the event would hold in Abuja on Tuesday.

While the three firms bidding for Afam Power Plc will try to outdo one another, Quest Electric Nigeria Limited’s only challenge will be to reach the reserve price for YEDC because it is the sole bidder.

The privatisation of Afam Electricity Generation Company could not be concluded during the first round of the power privatisation in 2013 due to issues stemming from gas supply to the plant.

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, which cited insecurity in the North-East region of the country.

Following this, the company was duly repossessed by the Federal Government.

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