$300m realised from sale of Eleme Petrochemical Company – BPE

Bureau of Public Enterprises (BPE) on Wednesday confirmed that the sum of $300 million was realised from the sales of Eleme Petrochemical Company Limited (EPCL) in 2006.

Abubakar Dikko, BPE acting Director General disclosed this in Abuja, during a public hearing held at the instance of House Committee on Privatisation and Commercialisation, chaired by Ahmed Yerima (APC-Bauchi).

While narrating the success story of the privatisation of the company, Dikko explained that Indorama which eventually emerged as the preferred bidder of the exercise, is building $1.8 billion fertilizer and methanol plants; high quality products; excellent public private  partnership, Hugh corporate social responsibility and community development as well as 723 staff strength as at 29th February 2016.

According to the document submitted by the Bureau to the Committee, AMB/Future View Consortium submitted $3,241,241,447 financial proposal; CSFB/Foster Wheeler Consortium submitted $3,735,568.68 while FBN/Standard Bank Consortium submitted N117,000,000 ($883,685.80) in 2004.

Dikko however noted that FBN/Standard Group Consortium was recommended to World Bank for selection on the basis of combined technical and financial evaluation score, on November 1.

While responding to question on the cancellation of the previous bidding in which Dangote/Transcorp Consortium quoted the highest bid with $201 million while Indorama quoted $121.5 million in 2005, he explained that the Vice President who doubled as chairman in council, directed that both companies should resubmit their bids because they fell below the reserved price.

He noted that at the final bid, Dangote submitted $135.02 million while Indorama submitted $215.088 million without liability. The two bids below reserved price bid, but NCP declare Indorama as winner but not the preferred bidder.

According to him, the Bureau negotiated with Indorama to up its bid from $215,088,888 and finally agreed to pay $225 million and was confirmed as the preferred bidder. That was how the bidders were selected.

He stated that “the investor also provided evidence of its commitment to invest $150 million to revamp the company’s plants and facilities. The money was to be sourced from International Finance Corporation (IFC).
The BPE chief disclosed that Indorama paid the $225 million, but noted that the evidence of payment were not attached here.

While giving breakdown of the utilisation of the $300 million realised, Dukku disclosed that the sum of $225 million (75%) was for Indorama; $30 million (10%) was allocated to NNPC; $22.5 million for 7 communities) $7.5 million (2.5%) given to staff, while the sum of $15 million (5%) was retained by BPE on behalf of Federal Government.

While giving post-privatisation report, he observed that BPE monitored the company for five years in line with the SPA and that efforts to perform the hand over ceremony by the last administration in Port Harcourt was unsuccessful.

According to him, the company has successfully increased the production of 85.2 million metric tonnes target to 135 metric tonnes despite the two-months shut down of the company.