The preferred bidder of the Sapele Genco, EuroAfric has been granted three months extension within which to pay up the balance of $21 million to take possession of the Generation Company.
Rising from its meeting chaired by Vice President Namadi Sambo at the State House on Thursday, the National Council on Privatization (NCP) granted the extension having received legal advice from the Council’s Legal Committee and the Office of the Minister of Justice and Attorney-General of the Federation.
According to the Minister of State for Trade and Investment, Dr Samuel Artom, the NCP also took cognizance of the provisions of the bid agreement in granting the extension.
At the expiration of the deadline for payment, the preferred bidder, EuroAfric could only pay $180 million out of the $201 million it bided for. Nestle/Julius Berger is the reserve bidders with an offer of $106 million.
The Minister contended that it was better to hold on to the $180 million dollars at hand than go with the $106 million dollars being offered by the reserved bidder, Nestle oil/ Julius Berger.
Also speaking in the same vein, the chairman of NCP’s Legal Committee, Yunus Ustaz Usman said that the extension was in order as the relevant clause in the sale agreement clearly provided for such an extension.
He said the NCP was therefore not in breach of the bid process and was not afraid of any litigation that could arise.
Usman stressed that the Council learnt a hard lesson about the extension of payment deadlines from the ALSCON privatization case which is still pending at the Supreme Court.
“Our legal standpoint is that since we have the right to extend at any time and since the highest bidder has paid about $180 million, it is safer and in the interest of the public to so extend.
“The Vice President graciously said since these monies are meant for Nigerians, you cannot take $106 million that has not been paid and say you are foregoing $180 million dollars. The NCP graciously agreed and that is the position where we are.
Usman said, “In the case of ALSCON, the case is still at the Supreme Court and we tried by all means to ensure that we don’t fall into that trap again”.
