Yola DisCo investor to sign agreement on July 12
Yola Electricity Distribution Company (YEDC) lead investor Quest Electricity Nigeria Limited will sign a Stock Purchase Agreement (SPA) with the Federal Government on July 12, 2021.
A source, who spoke confidently with The Nation, said the deal was slated for last Tuesday, but the chairman of the National Privatization Council (NCP), Professor Yemi Osinbajo, was unable to surrender on site due to other commitments.
The source said: “They (the federal government and the lead investor) were supposed to sign the share purchase agreement on Tuesday. They shifted it to July 12, 2021. At the last minute, they shifted it. The vice president said he was going somewhere.
The company became the preferred bidder for the YEDC with a bid price of N19 billion.
Quest Electricity was the sole bidder for the Yola Electricity Company.
It won the tender on the same day (April 30, 2019) that Transcorp Consortium was declared the winner of the Afam Power Generation plant.
Diamond Stripes Consortium was the finalist.
The basic rules of the offer were in seven stages, which opened with the first offers.
Quest Electricity Nigeria Limited’s first round financial offer was lower than the booked price. Therefore, the chairman of the event, Dr Ayo Teriba, who represented the Chairman of the Technical Committee (TC) of the National Privatization Council (NCP), MK Ahmad, announced that the company should increase its bid price.
As stipulated in the ground rules, the bidders of the two electricity entities had 15 minutes to revise their financial offers.
In the first offer, Transcorp Power Consortium made an offer of 85.1 billion naira; Unicorn Power Consortium, 95.67 billion naira, and Diamond Stripes, 69.27 billion naira, as well as Quest Electricity, which offered 16.7 billion naira to Yola DisCo.
During the revised bids, Transcorp Power Consortium increased its bid to 105.03 billion naira; Diamond Stripes Consortium offered to pay 102.388 billion naira, while Unicorn Power Consortium offered 101.05 billion naira.
Yola DisCo’s sole bidder, Quest Electricity, which offered to pay N16.77 billion, raised its bid price to N19 billion.
The CEO of the BPE, Mr. Alex Okoh, pointed out that in accordance with the approval of the National Privatization Council (NCP), the BPE placed an advertisement in the relevant newspapers to launch a call for expressions of interest from bidders potential for the acquisition of the two electricity companies. .
The energy assets to be acquired, he said, included 100% of the share capital of Afam Power Plc, 100% of the share capital of Afam Three Fast Power Limited (ATFPL), jointly referred to as Afam Power.
He said the publication also called for expressions of interest in acquiring a 60% stake in Yola Electricity Distribution Company (YEDC).
Okoh recalled that when the submission deadline expired, expressions of interest (EOIs) were received from 12 companies and consortia for Afam Power.
“After the evaluation of the EOIs, nine companies achieved the qualification score and were therefore shortlisted to proceed to the Request for Proposal (RfP) stage,” he said.
He said that in the Yola DisCo transaction, EOIs were received from eight companies.
After the evaluation of the bids, five companies obtained the qualification score and were then shortlisted to proceed to the Request for Proposal (RFP) stage.
He added: “In order to facilitate informed technical and financial offers, all companies and consortia had access to virtual and physical data rooms, as well as site visits to companies between December 4, 2018 and January 25, 2019.
“Potential bidders interacted with company management and performed a physical inspection of factories and franchise assets.
“The deadline for submitting technical and financial offers was set for March 15, 2019. On the date set, BPE received technical and financial proposals from three firms / consortia out of the nine pre-qualified for Afam Power, and proposals of two out of the five prequalified companies for the YEDC.
“The technical proposals have been opened publicly to verify compliance with the RfP requirements. Bidders were instructed to include a bank guarantee as a precondition for the receipt and evaluation of their bids.