Transcorp pays 25% for Afam power plants — BPE

The Bureau of Public Enterprise (BPE) said Transcorp Power Consortium has paid 25 per cent of the acquisition fund for the Afam Power Limited and Afam III Fast Power on Thursday.

The firm had bid N105.3 billion for both plants and had until yesterday to make the initial advance to take over the plants.

• FG sells Afam power plants to Transcorp, expects N134bn investment
• NERC to begin another electricity tariff review

The DG of BPE, Alex Okoh, at the handing over event in Abuja, said the National Council on Privatisation (NCP) directed the handover.

Okoh said Transcorp Power Consortium paid cash of 25 per cent of the bid amount on November 26, 2020, as a condition precedent to the handing over.

According to verifiable documents, Daily Trust had reported that Transcorp had earlier opted for debt conversion. “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.

Meanwhile the lingering tussle over who owns the Aba ring-fenced area between Geometric Power and Interstate Electric (Owner of Enugu DisCo) has been resolved.

Both firms signed the Asset Sale Agreement (ASA) yesterday. At the signing ceremony in Abuja supervised by the Bureau of Public Enterprises (BPE), the Director General of BPE, Mr. Alex A. Okoh said since the agreement “is a win-win situation, we congratulate both parties. Indeed, we thank the duo of Interstate and Geometric Power for their cooperation in making the required compromises which have made this agreement possible”.

Managing Director of Interstate, Dr. Kester Enwereonu called on Geometric to ensure speedy enhancement of the infrastructure in the franchise.

The Managing Director of Geometric, Prof. Barth Nnaji, thanked President Muhammadu Buhari for having the political will and pledged to make the agreement work.

The Special Adviser to the President on Infrastructure, Mr. Ahmed Rufai Zakari said the signing ceremony signalled a return of investment in the power sector in Nigeria.

Aba Power Ltd (APL) had signed a pact with the defunct NEPA in 2005 to service the area but did not begin until the privatisation of 2013 when Enugu DisCo took over the franchise.