FG concludes power privatisation as Preferred bidders emerge for Afam, Kaduna power firms

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 Limited 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 Limited, NAHCO Consortium; INCAR Power Limited, Northwest Power Limited; LEDA Consortium Limited; and Copper Belt Consortium Limited, 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 Limited with 26.71 percent; NAHCO Consortium, 22.83 percent; INCAR Power Limited, 22.73 percent; Copper Belt Consortium Limited, 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 (9) for Afam plant.