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2019 Budget: Funding Receives Boost As Afam Power, Yola DisCo Privatization Generates N124.3 Billion Revenue

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Director General BPE, Alex Okoh

The funding of the N8.916 trillion
2019 federal budget received a boast as the privatization of Afam Power Plc (Generation company) and Yola Electricity Distribution Company has harvested a total of N124.3 billion revenue into the federation account.

The Federal government had indicated that the budget deficit would be funded mainly through privatization of some of the nation’s national assets and borrowing.

Yesterday at the financial bid opening presided by the Chairman of the Technical Committee of the National Council on Privatization, M. K. Ahmed, for Afam Power Plc and Yola Electricity Distribution Company, two core investors emerged preferred bidders for their acquisition.

While Transcorp Power Consortium emerged preferred bidder with price offer of N105.3 billion for the acquisition of 100 percent of the Federal Government of Nigeria shareholding in Afam Power Plc and Afam Three Fast Power Limited, Quest Electricity emerged as the preferred and sole bidder with price offer of N19 billion for the acquisition of federal government of Nigeria 60 percent shareholding in Yola Electricity Distribution Company.

The Chairman of the Technical Committee of the NCP who was represented by the Deputy Chairman, Dr. Ayo Teriba, while announcing the preferred bidders after the second round bidding to enable the potential investors to review their price offers to meet up the government preferred price, announced Diamond Strips Consortium which offered N102.4 billion as the reserved bidder for the Afam Power while Yola Electricity Distribution Company had no reserved bidder.

Earlier in an opening remarks for the financial bid opening coordinated by the Bureau of Public Enterprises (BPE), the Chairman of the Technical Committee of the NCP, explained that all the three bidders for the Afam Power Plc and One bidder for Yola DisCo had been prequalified by the BPE to have their financial bids opened.

Giving the modalities for the payment after emergence of preferred bidders, he said: “Payment will be made in Naira through the Remita Retrieval Reference in favour of BPE; 25 Percent of the purchase consideration within seven working days from the date of signing the shares sales and purchase agreement; the remaining 75 percent payment will be paid to BPE within 180 calendar days after signing of the shares sale and purchase agreement.”

The preferred bidders and runners up expressed appreciation to BPE on the transparent manner the bid process was conducted.

The preferred bidders also extended hands of technical partnership with the runners up, saying that even as they were guaranteeing that they would deliver all the deliverables, they will not close their doors against anyone who wished to partner with them in course of their drive to develop the power sector.

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