For the umpteenth time, Nigeria’s House of Representatives on Thursday directed the Bureau of Public Enterprises (BPE) to immediately suspend the
ongoing privatisation process of Afam Power Plc for the next 24 months pending the completion of Afam Fast Power, repair and rehabilitation of the old Afam Plants.
The lawmakers during the investigative hearing into the ‘planned privatisation of Afam Power Plc by BPE as a dilapidated asset’, frowned at the processes leading to the privatisation of the Afam Power Plant with installed capacity of 726MW and Afam Fast Power with the generating capacity of 240MW which has attained 90% completion level.
They also queried the rationale behind ongoing plans to sell both old Afam Power Plant and Afam Fast Power at the total sum of $400 million to fund 2018 budget.
Meanwhile, Afam management in the documents submitted to the Committee proved that the Afam Power Plant (old) is commercially viable.
According to the company, for one year, with a combined capacity of 276MW energy export to the grid would be 2,151,806,400KWh, quantity of gas consumed estimated 25,550,000,000scf; Cost of gas estimated at N25.8 billion will generate revenue worth N57.218 billion leaving a
balance of N31.418 billion.
In the same vein, the one year financial analysis carried out by the company on Afam III Fast Power Project slated for privatisation, showed that, with a combined capacity of 240MW, the energy export to the grid would be 1,871,136,000KWh, quantity of gas consumed estimated
at 21,900,000,000scf, cost of gas consumed pegged at N23,144,467,500, will generate revenue worth N49,487,471,890.53 leaving a balance of N26,322,004,390.53.
According to O. B. Obademi, Afam MD/CEO NBET owes the company a total sum of N1.3 billion.
However, in the document submitted to the Committee, Yunana Malo, BPE’s Director Energy who dismissed the allegations, confirmed plans to sell both Afam Power Plc and Afam Fast Power as one entity but not as dilapidated asset as alleged.
KEHINDE AKINTOLA, Abuja
