BPE urges investors to improve power generation, distribution

The Bureau of Public Enterprise on Monday advised investors in Kaduna Generating Company and Afam Distribution Company to improve the efficiency of their respective power companies.
The Director-General of the BPE, Benjamin Dikki, made the call at the formal signing of Share Purchase Agreement for the privatisation of Kaduna Distribution Company and Afam Generation Company in Abuja.
Earlier in a bid, Taleveras Group, a consortium comprising Rivers State Government and three foreign companies, emerged as core investor in Afam Power Plc, with a $260.5 million offer.
Also, NorthWest Power Limited, a consortium comprising Dantata Investment and Securities Company, emerged as the preferred bidder for the Kaduna Disco out of the six companies that made the bid.
Northwest Power Limited was declared the preferred bidder with the highest Aggregate Technical, Commercial and Collection loss reduction figure of 29.26 per cent.
ATC and C loss reduction in power generating and distribution was used to determine the preferred bidder rather than the highest price offer.
The BPE boss said that the agreement signed was for both parties to know the terms and conditions for their investments in the respective power companies.
Dikki said: “Also issues of materials and assets to be transferred were all covered in the agreement we are all signing today.
“It details the genesis of the companies involved up to the point the investors are taking over from.
“It also makes copious provisions for payments and sanctions in terms of default on timelines.
“The investors are not seeing this for the first time.
“We have met and negotiated each clause so that no party will feel ambushed when things begin to unfold.”
Dikki added that the agreement with North West was to reduce the AT and C losses during power distribution at the Kaduna Disco.
He added: “What that means is that they will invest in transformers, cable network, prepaid metres and other such things that would ensure full collection of revenue from the value chain.
“If you will recall, the distribution companies received power, which had already been built.
“So if they do not collect all the revenues from the power supplied, they are already making losses.
“So, that is what is going to induce them to make investments in improving the efficiency of the network so that no power is lost in the process of distribution to the last user.”
On Afam Genco, Dikki said that Taleveras had committed themselves to generating more power, maintaining and expanding the capacity of the Genco.
The BPE boss pledged that the bureau would monitor the power companies and ensure that they comply with the terms and conditions contained in the technical performance agreement signed.
The Chairman of NorthWest Power Limited, Yusufu Abubakar, reiterated the company’s commitment to meeting all obligations under the performance agreement and the share sales agreement.
Abubakar said: “We know the enormity of the task for turning around the Kaduna Disco and the challenges in the power sector.
“We are very committed to transforming the Disco into a world class distribution company that would serve our constituents, the people in the Kaduna distribution area.”
The General Director, Talevara, Oghens Sanomi, said: “Afam Disco will be transformed to generate 1,000 mega watts of electricity in excess.”