The National Council of Privatisation (NCP) has granted approval to the Bureau for Public Enterprises (BPE) to commence the process of privatizing the Afam Power Generation Company Plc and the Yola Distribution Company.
The government’s decision, aimed at improving the efficiency of the nation’s power sector, was confirmed in a statement issued by the Council yesterday.
The Council therefore invited prospective bidders who will operate the power stations and increase investments in the entities to indicate their interests.
It stated further that Afam (Afam Three Fast Power Limited (ATFPL)) would be sold through competitive bidding process while the Yola Disco’s bid would be through competitive bidding to be managed by the BPE.
It clarified further: “As part of the exercise, the NCP/BPE, on behalf of the Federal Government, hereby invites prospective bidders who will be responsible for operating the stations, improving the generation capacity and will make all necessary investments in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP) 2001.”
The NCP stated further that the GenCo consisted of Afam 1 – 5, with an original installed capacity of 987 MW, adding that “the plant was commissioned in five phases between 1962 and 2001. The section also has 132 KV and 330 KV switchyards that are owned and operated by the Transmission Company of Nigeria (TCN).”
As a bidding requirement, the Council required foreign firms applying for the bid to show evidence of tax payment in home country for 2014, 2015 and 2016; technical and operational capabilities; evidence of ownership or management or operation of thermal power generating plants.
Other conditions set for foreign entities to qualify for the bid include evidence of a strong balance sheet and demonstration of a good financial track record over time with respect to its core businesses and in other generation projects.
In addition, the Council indicated that upon receipt of Expression of Interest from interested investors, the BPE would evaluate and pre-qualify applicants.
