Nigeria’s Transcorp Plc wins bid for Afam Power Plant with 105.3 billion offer

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Transcorp Plc, core investors in the Ughelli Power Plant, won the bid for Afam Power, by beating two other contenders to emerge winner with an offer of 105.3 billion naira at the bids opening ceremony.

At the event, the Chairman, Technical Committee, National Council on Privatisation (NCP), Mr. Muhammad.K. Ahmed, represented by his Deputy, Dr. Ago Teriba, announced the Transcorp Power Consortium as the winner of the commercial and financial bids for the privatisation of Afam Power Plc.

The NCP also declared Diamond Stripes, which bid 102.4 billion naira, as the first runner-up and reserved bidder.

The Chief Executive Offier of Transcorp Plc, Mr. Valentine Ozigbo, who spoke at the event, said “it has been very obvious that governments can’t run business. They need the private sector to do so. I am glad that we are here to prove once again that point”.

Ozigbo noted that the purpose of Transcorp remains to impact lives and transform Nigeria, adding that the company’s ability to turn around the Transcorp Hilton Hotel, and Transcorp Power Limited in Ughelli, is an indication that it has what it takes to also turn around the Afam Power plant.

Similarly, for the Yola Electricity Distribution Company (YEDC), Quest Electricity, the sole bidder, won the bid with its offer of 19 billion naira.

Ahmed had earlier explained that the trio of prospective investors: Diamond Stripes Power Consortium, Transcorp Power Consortium, and Unicorn Power Generation Consortium were in the bid for the acquisition of Federal Government’s 100 percent stake in Afam Power Plc.

He also revealed that Sandstream Nigeria Limited, and Quest Electricity Ltd., were in the race for the acquisition of Federal Government’s 60 percent stake in YEDC, but Sandstream was disqualified for not submitting a bank guarantee alongside the commercial proposal as required by the Bureau of Public Enterprises (BPE).

The representative of the Nigerian Electricity Regulatory Commission (NERC), Aisha Mahmud, noted that the power sector is presently grappling with numerous challenges such as liquidity, non-cost reflective tariff, and others.

She said the regulator is working hard to ensure that there is a functional electricity sector, and that by next year, there is a high hope that everything would have been put in place for the industry efficiency.


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