Afam, Kaduna power firms: BPE warns bidders against non-compliance

The Bureau of Public Enterprises (BPE) has warned prospective bidders for Afam Power Plc and Kaduna Distribution Company that it will not tolerate non-compliance with the terms of the request for proposals (RFP) for the transactions.

BPE said it received 19 applications for Kaduna Disco and 30 applications for Afam plant as at the January 31, 2013 deadline for receipt of expressions of interest (EOIs) from prospective bidders for the two firms. Consequently, the Bureau, on February 4, 2013, sent requests for proposals (RFP) to the 49 prospective bidders.

Benjamin Ezra Dikki, acting director general, BPE, said on Monday that bids that are submitted late will be rejected immediately and proposals not submitted in substantial compliance to the RFP will also be neglected.

“Our philosophy is that only the very best is good enough for Nigeria,” Dikki stated in a remark at the pre-due diligence conference in Abuja for the re-tender of Afam Power Plc and Kaduna Electricity Distribution Plc held in Abuja.

Afam Power Plc and Kaduna Electricity Distribution Plc were among the 17 PHCN successor companies that were earlier advertised for sale in December 2010. Both companies had, along with the fifteen others gone through a full competitive tender process which culminated in the submission of technical and financial proposals in July 2012.

But following the rigorous technical evaluation that all bids received were subjected to, none of the bids received for Afam Power Plc and Kaduna Electricity Distribution Plc scored the minimum 75 percent required to progress to the financial bid stage. This development compelled the National Council on Privatisation (NCP) to order a re-run of the entire transaction since it was not prepared to settle for a second best.

Dikki, in a statement, noted that the privatisation body and all concerned have gained a lot of experience during earlier transactions for the other five generation and 10 distribution companies and that this present deal will definitely benefit from that experience.

He said some of the challenges already addressed during the process include a new tariff order which is now more cost-reflective than before, improvement in gas supply and gas infrastructure, finalisation of industry agreements covering gas supply and transportation, electricity transmission and distribution and bulk power purchase.

Dikki assured that although the challenges facing the nation’s electricity sector are many, the Federal Government is committed to resolving them and has therefore committed to the implementation of the power sector reform in order to find lasting solutions to the problems facing the sector at the least possible cost to the Nigerian electricity consumers.

ONYINYE NWACHUKWU, Abuja