Fed Govt Hands Over N105.3bn Power Plant To Transcorp
The Federal Government on Thursday handed over the N105.3bn Afam Power Plant to Transcorp Power Consortium based on the approval of the National Council on Privatisation.
The Director-General, Bureau of Public Enterprises, Alex Okoh, handed over the power plant to the preferred bidder on behalf of the Federal Government in Abuja.
This came as the BPE also announced that the lingering tussle over who owns the Aba ring-fenced area between Geometric Power and Interstate Electric (owners of the Enugu Electricity Distribution Company) had finally been laid to rest with the signing of the Asset Sale Agreement between the two firms.
Earlier this month, Economic Confidential reported the signing ceremony for the official sale of the Afam Power Plant during an event that was held at the Office of the Vice President in Abuja
In October last year, the National Council on Privatisation approved Transcorp Power Consortium as the preferred bidder for the Afam Electricity Generation Company (Afam Power Plc and Afam Three Fast Power Limited) with a bid price of N105.3bn (about $343.6m).
This was one of the major decisions taken by the council, chaired by the Vice President and Chairman of Council, Prof. Yemi Osinbajo, at the second meeting of the NCP for 2019 on October 14, 2019.
Speaking at the handing over event in Abuja on Thursday, Okoh explained that after the previous failed attempt to privatise Afam Power Plc and the approval granted by NCP for the recommencement of a new process, the BPE commenced a competitive privatisation process for the plant.
This, he said, culminated in Transcorp Power Consortium emerging as the preferred bidder with a combined offer of N105.3bn.
He said Transcorp Power Consortium paid cash of 25 per cent of the bid amount on Thursday, November 26, 2020, which was a condition precedent to the current activity of handing over.
The President, Transcorp Power Consortium, Tony Elumelu, expressed gratitude to Federal Government and gave assurance to work with the state government, host community and residents to fast track development in the area.