The following article by Clara Nwachukwu was published in Vanguard on September 06, 2013. To view the original article, click here.
Interstate Electrics completes payment for Enugu DISCo
Interstate Electrics (IE), which won the bid for the Enugu Electricity Distribution Company, DISCo, is said to have completed the payment of the 75 percent balance for the electricity firm.
A top official at the Bureau of Public Entreprises, BPE, told Vanguard Friday that the consortium paid the sum of $94,505million or about N148.373 million which was credited to the BPE’s account on Thursday, thereby enabling the preparation for the firms’ takeover.
The development followed Interstate taking advantage of the available window for the completion of outstanding balance as spelled out in the Share Purchase Agreement (SPA).
Recall that the Request for Proposal signed by the bidders gave a 20-working day extension after the expiration of the orginal deadline on August 21.
However, the consortium, which is being promoted by multi-billionaire businessman, Sir Emeka Offor, had given the assurance that the payment processes would be completed before the weekend, thus fulfilling its promise.
The consortium incorporated as a vehicle for the purpose of acquiring and operating Electricity Distribution Companies in Nigeria emerged the preferred bidder for the Enugu DISCO after a rigorous bidding process in the sale of PHCN in 2012, with an Aggregate Technical, Commercial and Collection (ATC & C) loss reduction proposal of 20.83%.
It comprises of Chrome Consortium Energy Nigeria Limited, Powerhouse International Limited, and Metropolitan Electricity Authority, and parades a competent team of electricity infrastructure engineers, owners/operators of electricity power distribution companies, upstream and downstream oil operators and empowerment partners, with a collective global experience of over 80 years.
The consortium’s technical partner, Metropolitan Electricity Authority of Thailand (MEA) with over 50 years experience is responsible for the distribution and sales of electricity to users in Bangkok and metropolitan vicinities, including Nonthaburi and Samutprakarn provinces. MEA’s distribution area covers 3,195 square kilometers divided into 14 districts with a population of about eight million and energy sales of 44,714 GWH of electricity.