Power: Kaduna, Afam investors get April 4 deadline

PHCN power station
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The 49 firms that have expressed interest in buying into two electricity firms carved out of the Power Holding Company of Nigeria Plc, Afam Power Plc and Kaduna Distribution Company Plc, must submit Request for Proposals by April 4, 2013 or they should forget taking over the companies.

The Head, Public Communications, Bureau of Public Enterprises, Mr. Chigbo Anichebe, confirmed the deadline in a telephone interview with our correspondent in Abuja on Wednesday.

RFPs are forms on which intending privatisation advisers and potential core investors make proposals on an offer announced by BPE. The agency usually calls for RFPs before calling for detailed technical and financial bids.

Afam Power Plc and Kaduna Electricity Distribution Plc were among the 17 PHCN successor companies that were earlier advertised for sale in December 2010, and both, along with the others, went through a tender process that culminated in the submission of technical and financial proposals in July 2012.

However, none of the bids received for the Afam and Kaduna plants scored the minimum 75 per cent required to progress to the financial bid stage.

This compelled the National Council on Privatisation headed by Vice-President Namadi Sambo to order a re-run of the entire transaction.

When the BPE announced the fresh offer of the two companies, 49 companies submitted their Expressions of Interest to acquire 60 per cent equity in the electricity firms.

Already, 15 of the successor companies have got preferred bidders who beat the March 21 deadline to pay 25 per cent of the bid prices.

The BPE had on March 21, 2013 received $31m from 4Power Consortium; being the mandatory 25 per cent of the bid value for the Port Harcourt Distribution Company; $31.5m from Interstate Electrics Limited for Enugu Distribution Company; and $27,913,633.50 from North-South Power Company for Shiroro Power Plc.

Earlier, Vigeo Consortium, the preferred bidder for Benin Distribution Company, had paid $32.25m; Transcorp/Woodrock Consortium paid $75m for Ughelli Power Plc; and CMEC/EUAFRIC Energy JV paid $50,249,965 for Sapele Power Plc.

Also, Kann Consortium, the preferred bidder for the Abuja Distribution Company paid $41m; Aura Energy paid $20,464,968.15 for Jos Distribution Company; Mainstream Energy Limited paid $59,467,500 for Kainji Power Plc; and Sahelian Power SPV paid $34.25m for Kano Distribution Company,.

Others are Amperion Power Company Limited, the preferred bidder for Geregu Power Plc, which paid $33m; Integrated Energy Distribution & Marketing Company, paid $42.25m and $14.75m for Ibadan and Yola Distribution Companies, respectively.

NEDC/KEPCO, the preferred bidder for the Ikeja Distribution Company, paid $32.75m; and West Power & Gas paid $33.75m for Eko Distribution Company.