According to documents sighted by This Day, the Bureau of Public Enterprises, BPE, has received approval from the National Council on Privatisation (NCP), to re-sell Yola Electricity Distribution company (YEDC) and two thermal power generation plants. The consortium of investors who bought YEDC in September of 2013, led by Integrated Energy and distribution Maanagement Services, declared a force majeure on the firm in 2015.
This was down to its inability to enumerate and collect revenue from its customers. The federal government is however yet to re-fund the investment pumped into the purchase of the company, thus creating debts for YEDC’s core investor who is also a chief financier of Ibadan Electricity Distribution Company.
BPE revealed that as at December 31, 2017, it had 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. The companies would also show they have strong balance sheet and demonstrate good financial track record that could support adequate investments in the network.
BPE wants any company who gets to operate the Disco, to be able to 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). It would also prefer interest to come from an existing distribution company or a core investor with equity in a distribution company.
The parastatal said 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. The document disclosed that the pre-qualified companies who bid for YEDC, will be issued a Request for Proposal (RFP) and other bidding documents, when a non-refundable fee of $20,000 in bank draft payable to the Bureau is deposited.
BPE is also expecting the winning bid to 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.
Also up for sale are the 940 mw afam I to V power plant and the 240MW Afam Three Fast Power Limited. The document said both plants are up for competitive bidding. The document however noted that Afam 1-3 have been decommissioned and not up to 200 mw of the power plant’s capacity is in operation. While ATFPL, is made up 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.