BEVERLY HILLS, November 06, (THEWILL) -The Federal Government has revealed that the share sale and purchase agreement with Transcorp Power Consortium in relation to Afam Power Plc and Afam III Fast Power Ltd will add 966MW to the national grid.
The Director-General, Bureau of Public Enterprises, Alex Okoh, signed on behalf of the Federal Government while the Chairman of Transcorp Group, Tony Elumelu, signed for the firm.
Vice President Yemi Osinbajo, who is the chairman of the National Council on Privatisation, witnessed the ceremony held at the Presidential Villa, Abuja.
The NCP had approved the privatisation of the Afam Power Plant at its meeting held on August 22 and 23, 2017.
Transcorp Power Consortium emerged the preferred bidder with a combined offer of N105bn .
At the brief ceremony, Osinbajo described the signing of the agreement as a milestone in the Federal Government’s continued effort to accelerate reforms in the power sector.
He further described the acquisition of the two power plants as the first in the many new investments in the sector across value chain from generation to distribution.
He said, “The Buhari administration’s goal is to eliminate the challenges in the power sector by improving liquidity in the market through a host of measures, including the recently announced national mass metering programme and the transition to a service-based tariff.
“We need a power sector that can provide quality service to Nigerian consumers and sustain itself. The Afam Power PLC and the Afam III Fast Power Ltd have a combined capacity of almost 1000MW.
“The current usable and operational capacity of 240MW from Afam III and about 100MW from Afam Power Plc speaks of the opportunity that the transfer acquisition can bring.”
Osinbajo urged the firm to seize the opportunity of its ownership of the Afam Power Plant to raise the operations of the facility to its full capacity.
He said government would expect the consortium to bring its experience and expertise in the Ughelli Power Plant, which it acquired in 2013, to bear on Afam.
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