Ahead of the March 21 deadline, the preferred bidder for the Eko Distribution Company, West Power & Gas, has paid $33.75m, the Bureau of Public Enterprises has said.
The $33.75m represents the mandatory 25 per cent of the total value of the transaction. The valuation for 60 per cent equity of the company is $135m.
A statement issued by the Director, Public Communications, BPE, Mr. Chigbo Anichebe, in Abuja on Thursday, said West Power & Gas made the payment in two tranches.
The BPE had given the 14 preferred bidders that merged from the process of selling the successor companies to the Power Holding Company of Nigeria a deadline of March 21 to pay the mandatory 25 per cent of the total transaction value of each of the firms.
The preferred bidders are expected to pay the remaining 75 per cent of the total cost within six months before they will eventually take over the running of the successor companies.
The West Power & Gas consortium comprises Alpha Consortium Limited, Atlantic Meridean, Africa Infrastructure Investment Fund, Mauritius and Siemens Limited of Germany.
The National Council on Privatisation had in December 2010 called for Expressions of Interest from prospective core investors interested in acquiring controlling stakes in 11 power distribution companies created out of PHCN.
By March 4, 2011, the deadline for the submission of the EOIs; 180 applications were received for the 11 Discos.