BREAKING NEWS

Investors Set To Acquire Yola Electricity Distribution Company(YEDC)

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Disclosure made by the Bureau of Public Enterprises (BPE) on Monday, the 18th of March, 2019 revealed that a total of five bids has been received for the purchase of YEDC. And March 15, 2019, has  been set as deadline for the submission of technical and financial proposals for the acquisition of YEDC and Afam Electricity Generation Company (Afam Power Plc & Afam Three Fast Power Limited).

 

The BPE informed that two firms; Quest Electricity Nigeria Limited and Sandstream Nigeria submitted proposals to acquire the YEDC while Diamond Stripes Consortium, Unicorn Power Generation Consortium and Transcorp Power all sought to acquire the Afam Generation Company.

However, Sandstream submission was found to be non-responsive as it failed to include a bank guarantee in line with the requirements in the Requests for Proposal (RfPs). As such, representative of the firm took back their bid.

While commenting on the event, Director General of the BPE, Mr. Alex A. Okoh assured the bidders that the evaluation of their bids would be subjected to the highest level of integrity, which would culminate into the financial, bids opening of the successful bidders.

Also, in the statement signed by the Bureau’s spokesperson, Amina Tukur Othman, Okoh emphasized that the Evaluation Committee would meet immediately to discuss and finalize the scoring criteria before commencing the evaluation process between Monday, the 18th to Thursday, 21st of March, 2109.

It would be recalled that although YEDC was successfully privatised and handed over to the core-investor in 2013, a force majeure was declared in 2015 by the core-investor citing insecurity in the North-East region of the country.

Against this backdrop, the Federal Government duly repossessed the company. The transaction for Afam Power Generation Company (GENCO) on the other hand fell through due to the delay in signing the Gas Supply Agreement (GSAA) and the Gas Transportation Agreement (GTA) by the Federal Government and the private sectors. This led to in 2017; the National Council on Privatisation (NCP) gave approval for a fresh transaction to privatise the two power companies.

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