…hands over Sapele power Plc to CMEC/Eurafric Energy
By Etuka Sunday
The Director General of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki has attributed the successes recorded in the power sector reform and privatization to the dogged leadership provided by President Goodluck Jonathan and his Vice, Mohammed Namadi Sambo. Dikki who spoke in Sapele, Delta State at the official handover of Sapele Power Plc to the core investor, CMEC/Eurafric Energy Ltd at the weekend said the dogged leadership of the President and Vice President and their insistence to the strict adherence to transparency and accountability was the difference between success and failure of thetransaction.
A statement by the Head, Public Communications, Chigbo Anichebe quoted the DG as saying that Jonathan’s administration has made a conscious effort to make the private sector the driver of economic growth in Nigeria; adding that the power sector reform was part of the administration’s avowed commitment to make Nigeria better than it met it.
He said it was not by chance that Nigeria’s power sector reform and privatization was adjudged the biggest, most transparent and comprehensive power sector privatization in recent history.
He assured Nigerians, especially the host community that Sapele Power Plc would soon achieve the maximum installed capacity and begin to expand capacity, creating more jobs and opportunities for all Nigerians.
The BPE boss enjoined Nigerians to be patient, adding that in a few years, the successes recorded in the Telecomm reforms would pale when compared to the opportunities expected in the power sector reform.
After the emergence of CMEC/EURAFRIC ENERGY LTD as the preferred bidder for Sapele Power Plc. for a bid consideration of $201 million, the company able to pay $50,250,000, which is 25% of the consideration by the deadline of March 21, 2013 as was required.
The bidder was however unable to complete the payment of the remaining 75% by the end of the deadline of August 21, 2013; but paid an additional amount of $79,186,656.55 to bring the total amount paid to $129,436,656.55.
CMEC/EURAFRIC requested for extension of the payment deadline in accordance with the Share Sale Agreement. This request was carefully considered and the Attorney General’s advice sought before the National Council on Privatization (NCP) gave its approval.
The handover marks the concluding stage of the transaction for five (5) generation companies and ten (10) distribution companies. The remaining two successor companies (Afam Power Plc. and Kaduna Disco) will be handed over to their respective owners after payment of the 75% balance of the acquisition cost.