Nigeria will attempt to re-sell the Yola Electricity Distribution Company (Disco), which was returned to it in 2015 by a core investor after declaring a force majeure on its operation of the network, as well as two gas power generation plants, according to a report.
The paper gathered from a document it sighted on Tuesday in Abuja that the Bureau of Public Enterprises (BPE) has got approval from the government through the National Council on Privatisation (NCP) to re-sell the Yola Disco through a competitive bid process to be managed by the BPE.
Also up for sale are the 987.2 megawatts (MW) Afam power plant and 240MW Afam Three Fast Power Limited (ATFPL) which the government initiated in 2016.
In the BPE document, it was learnt the BPE has invited core investors to express interest in acquiring the government’s 60 per cent shareholding in Yola Disco, and 100 per cent shareholding in the Afam Genco.
For Yola Disco, the BPE stated that it had as at December 31, 2017, supplied grid power to over 181,000 customers across four states, and has 3,454 sub stations; nine transmission stations, 33 numbers of 33KV circuits covering 6,590 kilometers and 112 11KV circuits covering 1,385 kilometres.
It explained its preference for bidders of the Disco to be existing power distribution companies or core investor groups with power distribution companies as equity investors.
The successful bidder, it explained, would be responsible for operating the Disco, make all necessary investments to improve the distribution network and customer service in line with the objectives of the government as set in the National Electric Power Policy 2001 (NEPP).
For methods of application, the BPE document noted that potential bidders would have to submit Expressions of Interest (EOI) containing their full name and contact person, with evidence of registration as a business entity in Nigeria.
It equally noted that in addition to the request for evidence of compliance with its legal and financial demands of the country, potential bidders would also show they have technical and operational capabilities, which include years of experience in power distribution, number of customers served, length of networks, and evidence of operating or owning similar distribution networks with qualified professionals who possess relevant operating experience.
The companies would also show they have strong balance sheet and demonstrate good financial track record that could support adequate investments in the network.
For Afam Power Plc and ATFPL, the document suggested they would be jointly privatised through competitive bidding.
It explained that Afam Power Plc consists of Afam 1 to 5 with an original installed capacity of 987MW, while ATFPL consists of an initial installed capacity of 240MW comprising eight turbines of 30MW each supplied by General Electric.
“The plant was commissioned in five phases between 1962 and 2001. The station also has 132KV and 330KV switchyards that are owned and operated by the Transmission Company of Nigeria.
“Afam 1-5 used to house 20 Gas Turbines. At present, Afam 1, 2, 3 are decommissioned while two units of Afam 4 (GT17and 18) are generating between 70 – 110MW, the remaining four units (GT 13-16) and the two units of Afam 5 (GT 19 and 20) can also be rehabilitated.
“ATFPL is a large scale pilot power project involving the optimisation of power output in potential brown field sites through the use of trailer – mounted turbines utilising gas or condensate as feedstock,” said the document.
It explained that potential bidders will be responsible for operating the station, improving the generation capacity and make all necessary investments in line with the objectives of the NEPP.
As regards more of application, the BPE document suggested similar request made for the Disco would be made for the Genco, except for technical and operational capabilities which would include years of experience in operating generating plants, especially experience in thermal Gencos.
Potential bidders would also be required to show evidence of similar plant owned or operated and that it employs qualified professionals who possess relevant operating experience, in addition to showing it has a strong balance sheet and demonstrate a good financial track record over time with respect to its core businesses and in other generation projects. (Today.ng)
