The Federal Government on Thursday signed a share sale and purchase agreement with Transcorp Power Consortium in relation to Afam Power Plc and Afam III Fast Power Ltd, Punch reports.
The agreement, which is expected to lead to the addition of 966MW to the national grid, was signed at the Presidential Villa, Abuja.
The Director-General, Bureau of Public Enterprises, Alex Okoh, signed on behalf of the Federal Government while the Chairman of Transcorp Group, Tony Elumelu, signed for the firm.
Vice President Yemi Osinbajo, who is the chairman of the National Council on Privatisation, witnessed the ceremony.
The NCP had approved the privatisation of the Afam Power Plant at its meeting held on August 22 and 23, 2017.
Transcorp Power Consortium emerged the preferred bidder with a combined offer of N105bn .
At the brief ceremony, Osinbajo described the signing of the agreement as a milestone in the Federal Government’s continued effort to accelerate reforms in the power sector.
He further described the acquisition of the two power plants as the first in the many new investments in the sector across value chain from generation to distribution.
He said, “The Buhari administration’s goal is to eliminate the challenges in the power sector by improving liquidity in the market through a host of measures, including the recently announced national mass metering programme and the transition to a service-based tariff.
“We need a power sector that can provide quality service to Nigerian consumers and sustain itself. The Afam Power PLC and the Afam III Fast Power Ltd have a combined capacity of almost 1000MW.