Transcorp Consortium has completed a 100 per cent acquisition of Afam Power Plc and Afam III Fast Power Limited
The acquisition cost stands at ₦105 billion ($274 million) for the 966MW joint generating plant, making it the biggest domestic financing deal in the generation sub-sector this year
The signing ceremony was held at the State House with Vice President Professor Yemi Osibanjo and the Chairman of Transcorp, Mr. Tony Elumelu.
The Federal Government on November 5th, 2020 signed over the 966MW Afam III power plant to successful bidders, Transcorp Nigeria in the presence of Vice President Professor Yemi Osibanjo and the Chairman of Transcorp Nigeria, Mr. Tony Elumelu at the State House. The Vice President congratulated the Company and ensued them to play the important role of improving the country’s electricity sector in line with the policy direction of the Federal Government for the Sector.
It should be noted that Transcorp also owns Ughelli Power. Ughelli power has a total installed capacity of 972MW with the hopes of increasing capacity. However, just like every other generation country, the plant suffers a shortage of the much-needed gas supply in addition to the poor wheeling capacity of the Transmission Company of Nigeria (TCN). This results in the plant generating below their installed capacity. The acquisition of the Afam III makes Transcorp the only company to acquire assets in the same sub-sector of the value chain.
In a report published on Premium Times, the Bureau of Public Enterprise revealed that only Ugheli and Geregu Power companies, among the six privatised GenCos, have delivered on their targets. This could be the justification for the government to allow Transcorp Plc to acquire another critical asset such as the Afam III power plant.