BPE HANDS OVER SAPELE POWER COMPANY TO CORE INVESTOR

BPE HANDS OVER SAPELE POWER COMPANY TO CORE INVESTOR

By Amadin Uyi, 23^rd Feb, 2014

The Bureau of Public Enterprises BPE has on Friday handed the Sapele Power PLC to CMEC/EURAFRIC ENERGY LTD.

This was after the joint consortium met up its consideration bid of $201 million (about 34 billion naira), out of which $50,250,000 (almost 9 billion naira), about 25% of the consideration was paid before its expected deadline which is March 21, 2013.

The Director General of the BPE Mr Benjamin Dikki commended CMEC/EURAFRIC ENERGY LTD for meeting the balance payment as it initially failed to complete the remaining 75% payment by the end of the deadline of August 21, 2013.

The consortium instead paid $79,186,656.55 bringing its total payment to $129,436,656.55 and requested for an extension in accordance with the Share Sale Agreement.

This BPE acceded after approval from the National Council on Privatization (NCP) and the Attorney General’s office but on the basis CMEC/EURAFRIC would pay the expected penalty, which is interest on the outstanding balance at the prevailing rate of LIBOR + 5% with effect from the day of default and at a deadline date of January 29, 2014.

CMEC/EURAFRIC fortunately, met this deadline.

Mr Dikki thanked the Presidency for the support and insistence to a strict rule of transparency and accountability and said this was the reason the process succeeded.

He said the Federal Government is committed to making the power sector privately driven and assured Nigerians its reform is in progress.

The BPE boss also assured the host community that the new power station will operate at full capacity in the shortest possible time and asked that they remain patient as jobs and opportunities will be created.

The BPE said the remaining two successor companies; Afam Power Plc. and Kaduna Disco will soon be handed over to their respective owners, this is after they pay the 75% balance of the acquisition cost.