FG Hands Over Afam Power Plant To Transcorp

27 Nov FG Hands Over Afam Power Plant To Transcorp

The Federal Government on Thursday handed over the N105.3bn Afam Power Plant to Transcorp Power Consortium.

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.

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.

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).

Speaking at the hand-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% of the bid amount on Thursday, November 26, 2020, which was a condition precedent to the current activity of handing over.

Okoh said, “I must add that my emphasis on cash payment is to correct some misinformation in the media that purported that the Afam deal is a mere reconciliation of figures between the Federal Government and Transcorp.

“For the benefit of those who wish to know, this idea was never accepted by both the NCP and its several sub-committees. However, with the payment of the money by Transcorp to the treasury today, we hope this unfounded and concocted information being fed to the public would stop.”

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.