27 February 2013

Nigeria: 48 Firms Bid for Afam Genco, Kaduna Disco

Abuja — A total of 48 different companies have expressed interests in acquiring the two remaining successor companies hived off the Power Holding Company of Nigeria (PHCN) in a renewed bid to fast track their sales in line with the ongoing privatisation exercise.

Bids for the two PHCN companies - Afam Generation Company and Kaduna Distribution Company - were earlier cancelled following allegations of inconsistencies in the process, especially from Afam, in which former Minister of Power; Prof. Barth Nnaji, was controversially alleged to have vested interest.

THISDAY gathered from a presidential source yesterday that the Bureau of Public Enterprises (BPE) had received interests from 48 companies for the two PHCN successor firms.

The source listed the bidders to include NAHCO Power Consortium, Skipper Nigeria Limited and a consortium involving Israel Electric Corporation as well as JBN-Nestoil Power Services and Marubeni West Africa Power Services.

The companies, he added, had submitted Expression of Interests (EoIs) to the BPE to meet the January 31 deadline issued by the bureau.

The BPE, it was gathered, had subsequently sent Request for Proposals (RFPs) to all the bidders on February 4, in which their respective exact bidding structure and format in relation to the risks and benefits from such sale would be known by BPE.

The source confirmed the status of the two firms as regards earlier disclosure by the Chairman of the Technical Committee of the National Council on Privatisation (NCP), Mr. Atedo Peterside, that the Federal Government had pegged January 31, as the deadline for submission of fresh bids for the Afam and Kaduna power assets.

"On January 31, the deadline for the receipt of Expression of Interests (EOIs) for Afam Power Plant and Kaduna Distribution Company was received by the BPE. The BPE in this regard received 29 applications for Afam generation firm and 19 applications for Kaduna distribution company.

"The BPE subsequently sent Request for Proposals (RFPs) to all the bidders on February 4, and I can confirm that some of the bidders for Kaduna Disco are NAHCO Power Consortium, Skipper Nigeria Limited, Incar Power and Israel Electric Corporation/Integrated Power Connect Projects.

"As for Afam, some of the bidders for the generation asset are Taleveras Group, NPG Consortium, Marubeni Engineering (West Africa) Limited, JBN-Nestoil Power Services Limited and Danglobe Consortium. The NCP is expected to meet on February 28, to amongst other things take a look at this issue," the source said.

Most of the firms had previously bid, albeit unsuccessfully, to acquire some of the PHCN successor companies. Among the previous bidders is Israel Electric Corporation (IEC), which is approximately 99.85 per cent owned by the State of Israel and is the main supplier of electricity in Israel, where it builds, maintains and operates power generation stations, sub-stations as well as the transmission and distribution networks.

Participation by firms such as O&M Solutions of Pakistan and Geometrics, which are linked to Nnaji in the power privatisation process, had compelled the NCP to cancel the technical bid evaluation process conducted for Afam and Enugu Distribution Company Limited.

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