The National Council of Privatization has approved Transcorp Power as the preferred bidder for the Abuja Electricity Distribution Company (AEDC).
Vice President Yemi Osinbajo disclosed this on Tuesday in Port Harcourt, Rivers State while commissioning the Afam 3-Fast Power Plant Oyigbo LGA, Rivers state.
“At the meeting of the National Council on Privatisation (NCP), the council approved Transcorp Power consortium as the preferred bidder of the acquisition of the Abuja Distribution Company,” he said.
“A major breakthrough of our privatisation process, which of course, as you know, started in 2005-2006, was and has been inadequate of private investments and real cash injections,” he said.
“From the time we started, an indigenous firm such as Transcorp Power and Heirs Holding have been making significant investments such as this 100 percent acquisition of installed capacity Afam Power Plc and Afam Three Fast Power Limited, jointly referred to as Afam GenCo. The acquisition cost, I am sure you have heard already, is N105.3 trillion.
“Only yesterday, the national council on privatisation (NCP) formally delisted Transcorp Power Plc, formerly known as Ughelli Power Plc, from routine monitoring and evaluation by the BPE, indicating yet another successful power investment.
“I can say the last few days belong to Transcorp Power because at the meeting of the national council on privatisation (NCP), the council approved Transcorp Power Consortium as the preferred bidder of the acquisition of the Abuja Distribution Company.”
In December 2021, following government’s approval, United Bank of Africa (UBA) took over AEDC over the inability of its major stakeholder, Kann Consortium, to service the $122 million debt owed to the bank. Kann Consortium secured a loan from UBA to acquire AEDC in 2013, making it to hold a 60 per cent stake in the Disco.
At the time, the Minister of Power, Abubakar Aliyu, said the takeover of the Disco by the bank had to happen.
He said, “The AEDC has, of recent, been facing significant operational challenges arising from a dispute between the core investors (KANN Consortium) as owners of 60 per cent equity in the AEDC and UBA as lenders for the acquisition for the majority shareholding in the public utility.
“The situation has currently deteriorated due to a lack of access to intervention finances leading to a point whereby legitimate entitlements of the staff are being owed thus leading to service disruptions on December 6, 2021 within its franchise area.
Aliyu added, “The UBA, as a lender, and in exercising its rights over the shares of KANN Consortium in the AEDC, has taken over the shares of the obligor in the AEDC. This takeover of the majority stake in the AEDC by UBA has consequently led to the reported changes in the management of the AEDC.”
In April this year, UBA said it would sell AEDC to recover the unpaid debt.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
