In a significant step towards Nigeria’s power sector privatization, Taleveras Group, an energy firm jointly owned by Nigerians and British West Indies investors, has emerged as the preferred bidder for Afam Power Plc with an offer of $260.05 million.
Taleveras edged out its only rival, TES Power Limited, which submitted a bid of $222.9 million. The announcement was made yesterday during the commercial bid opening for the privatization of power entities in Abuja.
In another major development, Northwest Power Limited, an indigenous power firm, won the bid for Kaduna Electricity Distribution Company (Disco). The company secured victory with a 29.29% Aggregate Technical, Commercial, and Collection (ATC&C) score, surpassing five other bidders, including:
•Leda Consortium – 26.71%
•Axis Power Distribution Limited – 17.4%
•Copperbelt Consortium – 21.73%
•NAHCO Power Consortium – 22.83%
•Incar Power – 22.73%
Privatization Process Nears Completion
The bidding process was presided over by Atedo Peterside, Chairman of the Technical Committee of the National Council on Privatisation (NCP), who emphasized that only the NCP, headed by Vice President Namadi Sambo, has the authority to approve the final winners.
“For Afam Genco, two bidders—Taleveras Group and TES Power Limited—met the 75% minimum score and also submitted the required post-qualification security. For Kaduna Disco, six bidders cleared the minimum technical requirements,” Peterside stated.
He also recalled that Afam Power Plc and Kaduna Disco were among the 17 successor companies of the Power Holding Company of Nigeria (PHCN) advertised for sale in December 2010 as part of the government’s privatization drive.
However, during the first bidding round, none of the bids for Afam Power and Kaduna Disco met the required 75% score, prompting the NCP to order a re-run. Instead of opening a fresh call for bids, the NCP allowed all pre-qualified bidders who had already paid the $20,000 data room fee to participate in a second round.
BPE Confirms Improved Privatization Framework
Speaking on the development, Benjamin Dikki, Director-General of the Bureau of Public Enterprises (BPE), acknowledged that initial challenges in the power sector’s privatization have been addressed.
“During the first round of the sale of PHCN successor companies, none of the bids for Afam Power and Kaduna Disco met the 750-mark threshold required for technical evaluation. However, with the lessons learned from previous transactions, improvements have been made,” Dikki said.
He noted that some of the major reforms now in place include:
•A new cost-reflective tariff order
•Improved gas supply and infrastructure
•Finalization of industry agreements, covering gas supply and transportation, electricity transmission, distribution, and bulk power purchase agreements
What This Means for Nigeria’s Power Sector
The privatization of PHCN assets is expected to transform Nigeria’s electricity sector, driving investment, improving efficiency, and ultimately boosting power supply across the country.
With the selection of Taleveras for Afam Power and Northwest Power for Kaduna Disco, the next step will be NCP’s final approval, paving the way for the completion
