Post Read 12 times
By Efe Ebelo, Snr. Correpondent, Abuja
The Bureau for Public Enterprise (BPE) has warned the 49 applicants that expressed interest in the privatisation of Afam Power Plc and Kaduna Electricity Distribution Company, to comply fully with the terms of the Request for Proposals (RFP) for the transactions.
Acting Director General of BPE, Mr. Benjamin Ezra Dikki, who was speaking at the pre-due diligence conference in Abuja for the re-tender of both firms as part of the ongoing privatisation of Power Holding Company of Nigeria (PHCN) assets across the country said the Bureau would not condone failure to conform with laid down guidelines.
He stressed that “bids that are submitted late will be rejected immediately and proposal not submitted in substantial compliance to the RFP will also be neglected.”
He said the BPE is committed to ensuring that only the best bidders take-over the two companies at the conclusion of the exercise, expressing the Federal Government’s determination to resolving the enormous challenges facing the nation’s electricity sector.
This, he continued, is the driving force behind the ongoing implementation of the power sector reform.
The Acting DG said a lot of experience had been gained from conducting the earlier transactions for the other five generation and 10 distribution companies, assuring that the latest transaction will definitely benefit from that experience.
Challenges already addressed include a new tariff order that is more cost-reflective, improvement in gas supply and gas infrastructure, finalising industry agreements covering areas like gas supply and transportation, electricity transmission and distribution and bulk power purchase.”
Admitting that the sector is not altogether out of the woods, Dikki, listed the constraints to its growth as: its low generation capacity, inadequate transmission and distribution infrastructures, poor operational performance, poor revenue collection, inadequate metering, poor billing and electricity theft.
Others, he continued, include: poor maintenance culture, inappropriate industry and market structure, unclear delineation of roles and responsibilities.
Also speaking at the occasion, Minister of Power, Professor Chinedu Nebo, promised that principles of transparency and level-playing field will guide the privatisation process.