Afam power plant gets buyer for $260m

The privatization process of Nigeria's power sector on Wednesday recorded a boost as the Afam power plant got an offer of US$260.5 million offer, the highest made by Taleveras Group, a consortium comprising Rivers State Government and three foreign companies.
The Acting Director of Electric Power Department of the Bureau of Public Enterprise (BPE), Alhaji Ibrahim Babagana, made the announcement at the financial bid opening for Kaduna Electricity Distribution Company and AFAM Power Plc in Abuja.

Taleveras Group and Tes Power Limited bade for the AFAM Power Plc, with the former emerging as preferred bidder and later as reserve bidder.

They emerged as the company with the highest offer, above the reserve price, while Tes Power Ltd, emerged as the reserved bidder.

Also, Northwest power Ltd, a consortium comprising Dantata investment and Securities Company emerged as the preferred bidder out of the six companies that bid for the Kaduna Distribution Company.

Babagana declared Northwest Power Ltd as the preferred bidder among the six bidding Companies, with the highest Aggregate Technical, Commercial and Collection (ATC&C) loss reduction figure, of 29.26 per cent.

He also announced that LEDA Consortium emerged as a reserve bidder with an ATC&C of 26.71 per cent.

ATC&C loss reduction as a basis for selection of preferred bidder instead of highest price offer was also in the 10 distribution companies that were privatised earlier.

The consortiums who lost out on the bids were Axis Power Distribution Ltd, NAHCO Consortium, INCAR Power Ltd and Copper Belt Consortium ltd.

Also speaking, Mr. Atedo Peterside, Chairman of the Technical Committee of the National Council on Privatisation (NCP) said the ATC&C was chosen as criteria instead of they are competing in loss reduction (APA).