TRANSCORP Group has emerged the preferred bidder for the Abuja Electricity Distribution Company (AEDC).
The Vice President of Nigeria, Yemi Osinbajo, disclosed this today while inaugurating the 240-watt Afam 3 power plant in Rivers state.
Osinbajo said that when the National Council on Privatisation (NCP) met, it formally approved Transcorp Power Consortium as the preferred bidder for the Abuja Disco.
He said, “I can say the last few days belong to Transcorp Power because at the meeting of the National Council on Privatisation, the meeting approved Transcorp Power Consortium as the preferred bidder of the acquisition of the Abuja Electricity Distribution Company.
“Only yesterday, the NCP formally delisted Transcorp Power Plc, formerly known as Ughelly Power Plc, from routine monitoring and evaluation by the Bureau for Public Enterprise (BPE), indicating yet another successful power investment.”
The vice-president lamented that a major problem of the country’s privatisation process, which started in 2005-2006, had been inadequate private investments and real cash injections.
Lauding the Transcorp Group, Osinbajo said, “From the time we started, indigenous firms such as Transcorp Power and Heirs Holding have been making significant investments such as this 100 per cent acquisition of installed capacity Afam Power Plc and Afam Three Fast Power Limited, jointly referred to as Afam GenCo. The acquisition cost is N105.3 trillion.”
The United Bank of Africa (UBA) had in December 2021 taken over the AEDC over the inability of its major stakeholder, Kann Consortium, to service the $122 million debt it owed the bank.
Kann Consortium had secured a loan in 2013 from the UBA to acquire the Abuja Electricity Distribution Company (AEDC), making it hold a 60 per cent stake in the DisCo.
However, in April 2023, the bank said it would be selling the AEDC to recover the $122 million debt.
Osinbajo further promised that the Federal government would continue to support investors to invest in Nigeria’s power sector.
He stressed that such support would lessen government’s spending on the sector and improve payment assurance to power sector value-chain players comprising generation, distribution and transmission companies.
Transcorp said in a statement it issued Tuesday after the commissioning of the new 240-watt turbine that with the already existing power plant residing in Afam, the commissioning brings the cumulative generating capacity of the plant to 1,000mw.
Osinbajo, at today’s event, urged gas producers and suppliers to have a fundamental rethink about supply security and proffer ways to ensure gas supply can improve and meet the gap and growing demand in Nigeria.
Hailing serial power investors and the entire Transcorp team for “yet another power sector investment”, the vice-president said, “I am confident that we have all that is required to create one of the best power markets. I am also confident that it will happen within our lifetime.”
The minister of Power, represented by the Permanent Secretary; Temitope Fashedemi, applauded the Transcorp Group for what he called its positive contributions to improving electricity generation in Nigeria.
“Afam Plc was taken over from the Ministry of Power with a capacity of 70mw. What I hear today is that already, capacity exceeding 100mw is being recovered from the plant,” he said.
He further expressed appreciation to the Transcorp team: “I would like to commend Tony Elumelu for driving investment in the Nigerian power sector across the value chain. Your team has bern to me the best in the sector so far.”