BPE, Investors Meet on $211m Refund for Afam, Yola Disco

• BPE, Investors Meet on $211m Refund for Afam, Yola Disco

Officials of the Bureau of Public Enterprises and former investors in two electricity companies – Yola Electricity Distribution Company and Afam Power Plc – have met for the refund of $211.81m which the investors had paid for the two companies.

Integrated Energy Distribution and Marketing Company had acquired 60 per cent equity in YEDC after paying $146.8m.

The Yola Disco was successfully privatised and handed over to the core investor in 2013. However, a force majeure was declared in 2015 by the core investor citing insecurity in the North-East region of the country where the company covers.

Following this, the company was repossessed by the Federal Government.

On the other hand, with a bid of $260.05m, Taleveras had on July 31, 2013, beaten TES Power to emerge the preferred bidder for Afam Power Plc, the last of the generating companies carved out from the defunct Power Holding Company of Nigeria.

The transaction could not be concluded because of the inability of the government to sign a gas supply agreement with the company.

However, before the transaction failed, the investor had paid $65.01m representing 25 per cent of the transaction value.

Authoritative sources, who spoke to our correspondent, confirmed that three meetings had been held between the parties to work out modalities for the refund of the monies paid by the investors in the failed transaction exercises.

Both Afam and Yola Disco are in the process of being sold again to new private investors.

The BPE recently confirmed that 19 prospective core investors were conducting due diligence on the two companies.

Meanwhile, the Director-General of the BPE, Mr Alex Okoh, has charged members of the management board of the Yola Electricity Distribution Company to shun personal and sectional interests in the discharge of their duties.

A statement made available to our correspondent in Abuja on Wednesday said that Okoh gave the charge while inaugurating the board of the company headed by Mr Gbeleyi Ayodeji.

The BPE boss reminded the members that they were trustees of the electric distribution company and as such, they should exercise their powers with honesty and diligence.

Okoh said, “As directors, you are trustees of the company’s finances and properties which you must account for in the exercise of your duties with honesty for the interest of the company and the shareholders and not your own interests.”

He informed them that their responsibilities as directors of the company included fiduciary relationship towards the company and observance of utmost good faith towards the company in any transaction with it or on its behalf and acting at all times in the best interests of the company.

Responding on behalf of other members, Ayodeji commended the government for the confidence reposed in them and pledged to discharge their duties diligently.