Payment deadline for Nigeria’s Afam Power plant extended

Afam Power Plant
Power Plant in Nigeria will now be paid for completely by Televeras Group come October 6

Televeras Group, alongside Northwest Power Plc, is now relieved after the extension of deadline to pay for the Afam Power Plant and the Kaduna Electricity Distribution Company in Nigeria. The two will now be required to pay for the facilities before a new October 6 deadline.

The two were chosen as the preferred bidders for the Afam Power Limited and the Northwest Power Plc respectively on May this year. The two had appealed for an additional time to disburse the balance of the 75% bid price for the power companies.

The appeal came because the gas agreement that was of importance to completion of the payment and which was established under the Share Purchase Agreement (SPA) and signed by the government had not been implemented.

Televeras Group and Northwest Power Plc had asked the government to extend payment of 75 per cent of the purchase price of the utilities within 60 days.

Head Public Communications at Bureau of Public Enterprises (BPE), Chigbo Anichebe said that Televeras had paid an initial deposit of 25% of the bid price of US$65.01m for the Afam Power Plant. He also said that Northwest Power Plc had paid US$40.75m for the Kaduna Electricity Distribution Company subsequent to the Share Purchase Agreements (SPA) executed by the two parties.

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