Transcorp Group emerges preferred bidder for Abuja DisCo

.As Vice President Osinbajo inaugurates AFAM 3 Fast Power Project

By Udeme Akpan , Energy Editor & John Bosko

THE Federal government, yesterday, disclosed that the Transcorp Group has emerged as the preferred bidder for the Abuja Electricity Distribution Company, AEDC. 

The Vice President of Nigeria, Prof. Yemi Osinbajo, disclosed this while speaking at the inauguration of the 240 megawatts, MW AFAM 3 Fast Power Project in Port Harcourt, Rivers State, where he represented the President.

He said the National Council on Privatisation, NCP, charged with the responsibility of overseeing the privatization and commercialization of public enterprises, with Vice President Osinbajo, as chairman, has already approved the acquisition of the AEDC by Transcorp Group.

He said: “The challenge before us now is for the industry to leverage the improved commercial environment that has been created to sustainably supply electricity and improve service to all citizens. This administration has made significant strides in this direction.”

Providing details on some giant strides, he said: “These transactions include, Quest PLC which became a core investor in Yola DisCo in 2020 with a transaction worth N19 billion. Last month the NCP, approved the 30-year concession on Zungeru Hydro Power Plant at $70 million a year. And overall, the story of the Nigerian electricity supply industry is also getting better.

“Since 2020, the Nigerian Electricity Regulatory Commission has executed all of its bi-annual review processes without fail,” stressing that this was a marked difference from the past.

Service Based Tariff, others enhance collection — VP

He said: “The introduction of the Service Based Tariff, the Payment Discipline initiative for the sector (through NERC and Central Bank of Nigeria, CBN) and the introduction of the National Mass Metering programme have led to a doubling of market collections in the Nigerian Electricity Supply Industry from N40 billion per month in 2020 to a record of N80 billion per month in the 1st quarter of 2023.”

He said: “Five underperforming DISCOs were brought into a restructuring program that has led to a N10 billion per month reduction in shortfalls. If this trajectory continues, the Nigerian Electricity Supply Industry will attain self-sufficiency by the end of 2023.”

We have completed  Zungeru

He said: “This administration has also completed and concessioned the Zungeru Hydroelectric power plant that will add 700MW of renewable energy to our energy mix. We believe we are on track to electrify all Nigerians in the next decade as we look forward to the next administration scaling up already existing programmes.”

The Vice President, who commended the Transcorp Group for its various interventions, said: “The tide (inadequacy of investment) is turning with indigenous power entrepreneurs such as Transcorp Power, and Heirs Holding making a significant investment such as this hundred percent acquisition of the 966MW installed capacity Afam Power Plc and Afam 3 Fast Power Limited (jointly referred to as “Afam GenCo”), at an acquisition cost of N105.3 billion.”

Transcorp emerges preferred bidder for Abuja DisCo

He said: “Only yesterday, the National Council on Privatization formally delisted Transcorp Power PLC (formerly known as Ughelli Power PLC) from routine Monitoring & Evaluation by the BPE, indicating yet another successful power investment.

 “The last few days, I must say belong to Transcorp Power because at the same meeting of the NCP, the council approved Transcorp Power consortium as the preferred bidder for the acquisition of the Abuja disco.”

We’ll continue to invest in power — Elumelu

Similarly, the Chairman of Transcorp Group, Mr. Tony Elumelu, who promised to continuously invest in the sector, said: “We all know the importance of power in Nigeria, we all experience the consequences of power deficit, implications for our people, our businesses, our schools, our hospitals and our institutions. Therefore, I am proud today that we have been able to put together so many key stakeholders.

“Why am I proud and happy, I would like us to tell a success story out of Nigeria. A story that can be repeated over and over again if government, community and the private sector work together as we have worked together here at Afam.

“The Transcorp Group Partnership began in November 2020.  When we signed the Afam power, share sale, and purchase agreement at a ceremony presided over by the Vice President of Nigeria. The journey has not always been easy but we have delivered, capacity recovery, plant investment, infrastructure improvement, excellent community relationships, and a transformed and motivated Nigerian workforce. We are fulfilling our promises to the government.

“Transcorp Group, is a stakeholder in the power sector, we recognize power is the single most critical factor to lifting our people out of poverty and enabling job creation. It is a sector that has been a strategic priority for us since the inception of our journey at Hairs Holdings. Why is it so, it is because to do well, is to do good. Power is a public good, a right, and a catalyst for a better Nigeria.

“I am delighted to welcome you, Mr. Vice President to the inauguration of this project; it is a testament to your legacy as chairman of the National Council of Privatisation and reinforces our country’s confidence in the ability serious-minded private sector leader to drive economic growth and progress.

“Transcorp has since inception in 2006 laid the way in demonstrating the success of successful revitalization programmes. Transcorp executed the largest capacity recovery in the privatisation power sector in Nigeria by increasing generated electricity of Transcorp power plant in Ugheli by 60 megawatts to over 6080 within five years. We transformed.

“I call on the Federal Government to please resolve the gas and power evacuation challenges that exist in this region so that the capacity we are covering in the plants is optimized for the good of Nigerians.”

Next administration should demonstrate commitment

He said: “I want to use this opportunity to urge the incoming administration also to improve gas supply to our industry and our Afam plants, ensure the completion of the 330 KVF tubor circuit Afam/Ikot Ekpene transmission lines which will increase the capacity of Afam corridor. And success has been built on the partnership with our host community.”

Earlier in his remarks, Rivers State Head of Service, Dr. Rufus Godwin, who represented Gov. Nyesom Wike, thanked the Vice President for his love and commitment for the wellbeing of Rivers people and Nigerians at large, stating that “the VP has become a son of Rivers and is welcome to the State anytime.”

Also, the President of General Electric in Nigeria, Muhammed Mijindadi recalled how on some difficult occasions in the process of delivering the project, the US-based company sought the quick interventions of the Vice President.

 He said: “The Vice President promptly intervened several times,” he disclosed adding that there were times when things were proving rather difficult. He praised the VP, the late Chief of Staff, Abba Kyari, the BPE, and Ministers of Power and Finance, for their support.”

Dignitaries at the event were the Permanent Secretary in the Ministry of Power, Mr. Temitope Fashedemi, who represented the Minister, and the Director General, BPE, Mr. Alex Okoh, among other officials.