Chairman Of The Technical Committee Of The National Council On Privatisation (NCP) At The Financial Bids Opening For Five Subsidiaries Of The Nigerian Mining Corporation (NMC) And Technical Consultants For Power Sector Monitoring

It is my pleasure to welcome you to the opening of the financial bids submitted by prospective investors for Maiduguri Bricks, Naraguta Bricks, NIMCO Terrazo, Gano Quarry and Kujama Quarry and technical consultants for power sector monitoring. There are eight companies bidding for the five subsidiaries of NMC.  We are also opening of the financial proposals of the nine firms that have been pre-qualified to move to this stage of the procurement process to engage technical consultancy service for the monitoring of the privatised Power Holding Company of Nigeria (PHCN) Successor Companies (SCs).


Advertisements for Expression of Interest (EOI) for Technical Consultants were placed in the local/foreign media from May 11, 2015 to June 19, 2015. At the deadline for submission, thirty two (32) EOIs were received. After evaluation, 26 firms obtained pass mark and were shortlisted to move to Request for Proposal (RfP) stage.

Following the approval of NCP in June 2017 to continue the procurement process, RfPs were issued to the pre-qualified firms on July 14, 2017 with a deadline for submission of the technical and financial bids on August 31, 2017. However, on request by prospective bidders, the deadline was extended by two weeks to a new date of 14th September, 2017. The SC’s distribution companies and generation companies were distributed into six Lots in the RfP as shown in the table below, and consultants were permitted to submit proposals for all the Lots but with a proviso that only one Lot can be won. Furthermore, the consultants were requested to list their participation for the Lots in order of preference.The different Lots as provided in the RFP are as follows:


Lot 1   Abuja Electricity Distribution Company Plc

Jos Electricity Distribution Company Plc

Lot 2   Benin Electricity Distribution Company Plc

Port Harcourt Electricity Distribution Company Plc

Enugu Electricity Distribution Company Plc

Lot 3   Eko Electricity Distribution Company Plc

Ibadan Electricity Distribution Company Plc

Ikeja Electricity Distribution Company Plc

Lot 4   Kaduna Electricity Distribution Company Plc

Kano Electricity Distribution Company Plc

Yola Electricity Distribution Company Plc

Lot 5   Kainji Hydro Electric Power Plc

Shiroro Hydro Electric Power Plc

Lot 6   Geregu Generation Company Limited –Thermal

Ughelli Generation Company Limited – Thermal

Sapele Generation Company Limited – Thermal

Afam Generation Company Limited – Thermal

Egbin Power Plant, Ikorodu, Lagos


At the deadline for the submission of technical and financial proposals, BPE received seventeen proposals from the under-listed firms. The technical proposals were evaluated in the presence of the Department of State Security Service and the BPE Anti-Corruption Unit officials. We therefore present the scores from the evaluation exercise as follows:



S/N Name of Firms Average Ranking
1 PWC 91.7 1st
2 Halcrow Infrastructure Ltd 85.3 2nd
3 Indra/Sigrum Africa Ltd. 82.35 3rd
4 Fluentgrid Ltd  (formerly known as Phoneix  Powering Utilities) 81.88 4th
5 Emtech Energy Services Ltd. 81.8 5th
6 Alsdur Ltd. 80.32 6th
7 Feedback Infra Private Ltd., India & Derekson Ltd. Nigeria 78.12 7th
8 Energy People/Nextier Consulting. 77.77 8th
9 Pakistan Engineering Services (PVT) Ltd. & OskanJo & Partners Ltd. 75.28 9th


S/N Name of Firms Average Ranking
1 PWC 92.42 1st
2 Halcrow Infrastructure Ltd 84.27 2nd
3 Fluentgrid Ltd  (formerly known as Phoneix  Powering Utilities) 82.32 3rd
4 Indra/Sigrum Africa Ltd. 80.44 4th
5 Energy People/Nextier Consulting. 77.14 5th



In line with provision of the RfP, the minimum technical score (Ts) required to pass is 75 points”.  As such, only firms that scored 75 points are pre-qualified for the next stage which is the opening of the financial proposals.


After the opening of the financial proposals, the scores shall be computed using the standard format. Thereafter, both technical and financial scores will be equalised to determine the final scores. Thereafter, the report will be presented for NCP approval, after which preferred Technical Consultants will be invited for negotiations. The weights allotted to the technical and financial proposals as provided for in the RfP are:

Technical                               80%

Financial                                20%

The formula for determining the weighted financial score was included in the RfP.


The brief on the privatisation processes is as follows

  1. Naraguta Bricks & Clay Company Jos- Core Investor Sale

Privatisation Process

Two previous attempts to privatise the company failed because of lack of Expressions of Interest (EOIs). However, between 2013 and 2016, the Bureau received three consecutive Expressions of Interest from the University of Jos. Having reviewed their EOI, the Bureau recommended to the Chairman of the National Council on Privatisation (NCP) that the method of   “willing buyer, willing seller” be adopted. The major premise being:

That Naraguta Bricks is located within the land that was originally allocated to the university for future development, as both belong to the Federal Government of Nigeria (FGN).  The privatization of the company was not envisaged then but selling it to the university was deemed apt in order to avert frictions that could arise with an outsider becoming the owner.

Consequent upon the recommendation, the Vice President approved the privatisation of Naraguta Brick & Clay Company Limited (NBCL) through a willing buyer/willing seller strategy to the University of Jos, Plateau State. The Bureau then requested UNIJOS to conduct due diligence and submit technical and financial proposals.

The university complied and submitted its technical and financial proposals to the Bureau. Following the evaluation of its technical proposal, the university scaled through which qualifies it for today’s financial bids opening for the acquisition of 75 % equity in Naraguta Bricks Jos Limited.

  1. Maiduguri Bricks & Clay Co Ltd – Core Investor Sale

The privatization process started in 2007 but failed due to lack of adequate interest. The process recommenced in July 2017 with an advertisement for Expressions of Interest (EOIs) from prospective core investors.  At the deadline for receipt of EOIs on July 24, 2017, four applications were received and evaluated. Two firms – Gargam Inter Services Ltd and Kareto Development Co. Ltd – were pre-qualified.


The pre-qualified firms conducted due diligence on September 7, 2017 and were asked to submit their technical and financial bids.

Consequently, the two technical bids were evaluated and only Gargam Inter Services Ltd scaled through. Accordingly, we are only going to open the bid of Gargam Inter Services Ltd for this transaction.

  1. NIMCO TERRAZO JOS – Asset Sale

The privatisation process commenced in 2007 but failed due to lack of interest. The process recommenced in July 2017 with the advertisement for the Expressions of Interest (EOIs). Three firms submitted applications. After evaluation of their EOIs, only two—Nensat International Ltd and Alheri (JJ) Nig—were   pre-qualified. They subsequently paid the non-refundable bidding fees, conducted due diligence and submitted financial proposals which qualified them for today’s financial bids opening. In this transaction, BPE is adopting asset sale strategy.


The privatization process started in 2007 but failed due to lack of adequate interest. The process recommenced in July 2017 with an advertisement calling for Expressions of Interest (EOIs) from prospective investors with an  option of first refusal to AAY International Mining Co.  At the dateline for submission of EOIs on July 24, 2017, two EOIs were received which were evaluated and the two prospective investors were pre-qualified. The two prospective investors— AAY International Mining Company and Nigerian Spanish Engineering— conducted due diligence and submitted financial proposals.

The sale strategy is also asset sale. The preferred bidder would in collaboration with BPE renew the license from the Mining Cadastral Office (MCO).

It is pertinent to note that the NMC mining license expired which left the quarry vacant. This development led to the acquisition of the land around it by A.A.Y International Mining Company Ltd. A.A.Y International Mining Company Ltd is now the land owner and has invested heavily on the site.


A previous privatization attempt in 2007 failed. The process recommenced in 2017.Four investors expressed interest in the 2017 exercise. The prospective investors were given letters to pay a non- refundable bidding fee and conduct due diligence after which they should submit their financial proposal. However, only two complied and submitted their financial proposals. The two bidders are Yusuf Mariri Trading Company and Duwan Mineral Resources Ltd.

The sales strategy is asset sale. The preferred bidder would in collaboration with BPE renew the mining license.


The ground rules for the financial bid process are as follows:

STEP I:           The authorized representative of each of the bidders will be given the opportunity to confirm if their financial bid is intact as earlier submitted.

STEP II:          The financial proposal of qualified bidders will be opened immediately.

STEP III:         The Chairman will verify the opened financial proposal and publicly announce the results.

STEP IV:        Bidders will be given 15 minutes within which to revise their financial bids. During this period, BPE staff will escort the bidders to anterooms where they may huddle and discuss their revised bids. During the process of revising their bids, consultations between bidding firms will NOT be allowed. Any such consultations may result in the disqualification of the offending party or parties.

STEP V:         The revised bids should be indicated on the forms already provided by BPE, signed by an authorized representative of the bidding consortium and sealed in an envelope for submission to the Chairman of the occasion.

STEP VI:        Once the second round of bidding has been submitted and verified, the Chairman will announce the results, indicating the preferred and reserve bidders.


The transaction of the enterprises will legally come to a close with the signing of the Share Sale Purchase Agreement and any other related documents by each preferred bidder. The payment mechanism is as follows:

  • Payment will be made in Naira through the remitta (RRR) in favour of BPE;
  • 10% of the purchase consideration within ten (10) working days from the date of official notification;
  • The remainder 90% payment will be paid to BPE within 30 calendar days from the date of official notification;



We wish the bidders the best of luck and look forward to the repositioning and transformation of these enterprises in line with the Federal Government objectives in the reform and privatization of public enterprises.


October 24, 2017