49 firms jostle for Afam, Kaduna power distribution plants

As no fewer than 49 companies are jostling to acquire Afam Generating Plant and Kaduna Distribution company, the privatisation process for the Enugu Electricity Distribution Company may be truncated due to feud over 20 year-old pact between the government and a private firm.

The Acting Director General of the Bureau of Public Enterprises (BPE), Benjamin Ezra Dikki, on Monday, told the applicants that the privatisation body had zero tolerance for non-compliance with the terms of the Request for Proposals (RFP) for the transactions.

He said by the end of January, the deadline for the receipt of Expressions of Interest (EOIs) from prospective bidders for the two firms, 19 applications were received by BPE for Kaduna Disco and 30 applications for Afam plant.

He said the Bureau, had in February sent Requests for Proposals (RFP) to the 48 prospective bidders.

'Bids that are submitted late will be rejected immediately and proposal not submitted in substantial compliance to the RFP will also be neglected. Our philosophy is that only the very best is good enough for Nigeria.'

Dikki spoke at the pre-due diligence conference organised in Abuja for the re-tender of Afam Power Plc and Kaduna Electricity Distribution Plc held also in on Monday.

The 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 15 others, went through full competitive tender process, which culminated in the submission of technical and financial proposals in July 2012.

But none of the bids received for Afam Power Plc and Kaduna Electricity Distribution Plc scored the required minimum 75 per cent to progress to the financial bid stage.

The development compelled the National Council on Privatisation (NCP) to order a re-run of the entire transaction, as it was not prepared to settle for a second best.