The following article by James Emejo was published in ThisDay Live on September 7, 2013. To see the original article, click here.
Interstate Finally Concludes Payment for Enugu Disco
Interstate Electrics (IE) which won the bid for Enugu Electricity Distribution Plc has finally completed the payment for the electricity asset, after it was offered a 20-working day grace period by the federal government to complete the outstanding balance payment as spelled out in the Share Purchase Agreement (SPA).
The company was said to have paid $12 million last week, out of an outstanding balance of $93 million, being 75 per cent of the transaction value it was expected to pay for Enugu Disco on or before August 21.
Promoted by multi-billionaire businessman, Mr. Emeka Offor, Interstate had failed to meet the August 21 deadline for the payment of 75 per cent balance for the asset, prompting the reserve bidder, Eastern Electrics to make advances in other to take over the asset.
But THISDAY had learnt the government was not in a haste to disqualify the preferred bidder after frantic gestures by Offor.
Interstate had assured earlier in the week that the payment processes was due to be completed before the weekend, a promise it apparently fulfilled with the payment, according to a credible source from the Bureau of Public Enterprise (BPE).
THISDAY gathered yesterday that an estimated total of $94, 505,000.00(about N148, 372, 85,000.00), had so far been credited into the privatisation agency’s account, thereby enabling the company to prepare for the takeover of the Enugu disco.
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 per cent.
It comprises 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.