ABUJA, NIGERIA, October 16, 2012 - The National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) today named Interstate Electrics Limited the preferred bidder for two of the 10 distribution companies (DISCOs) slated for sale under Nigeria's privatization program. The Intersate Electrics Consortium is led by Sir Emeka Offor and includes Chrome Energy, Power House International Limited and Metropolitan Electricity Authority (MEA) of Thailand.

Chrome Energy is a subsidiary of The Chrome Group (www.thechromegroup.net), a leading West African oil and gas conglomerate.

Interstate Electrics Limited was named preferred bidder for the Enugu DISCO and the Abuja DISCO. The preferred bidders were revealed Tuesday as part of the Nigerian government’s plan of unbundling the Power Holding Company of Nigeria (PHCN) and selling it off as 11 distribution and six generation companies. The overall aim is to end chronic power shortages in the country.

The NCP adopted Aggregate Technical, Commercial and Collection (ATC&C) loss reduction method for the selection of preferred bidders for the distribution companies because it would provide Nigerian consumers and other stakeholders with specific parameters with which to measure the outcome of the power sector reform and privatization. Interstate Electrics Limited was named preferred bidder for Enugu DISCO, with a proposed 20.83 percent ATC&C loss reduction. For the Abuja DISCO, Interstate Electrics Limited emerged the leading buyer as it proposed a 21.62 percent ATC&C loss reduction.

The ATC&C loss reduction plan is the ability of an investor to bring down the level of loss through business efficiencies and subsequently bring down the tariff in the next five years. The bidder who offered the highest loss reduction is expected to offer the lowest tariff in its own zone.

The sale of the ten distribution companies (Discos) to the successful bidders is expected to net the Federal Government a sum of N197.25 billion.

The Chrome Group, founded in 1994 by Sir Emeka Offor, is one of Nigeria’s leading indigenous multinational businesses with subsidiaries operating in oil and gas exploration and production, oil and gas servicing, engineering, insurance, logistics and power industries.