Request for Expressions of Interest at The Bureau of Public Enterprises (BPE)
The Bureau of Public Enterprises (BPE),
Federal Ministry of Industry Trade and Investment, Central Bank of Nigeria (CBN)
In Collaboration with
The Federal Ministry of Finance Public Private Partnership (PPP) Project Transaction Advisory Services for the Privatization of Abuja Securities and Commodities Exchange (ASCE) (Presently Nigeria Commodity Exchange)
Request for Expressions of Interest
The Federal Government of Nigeria (FGN) has received financing from the World Bank towards the cost of the Public Private Partnership (PPP) Project and intends to apply part of the proceeds for consulting services. The consulting services are Transaction Advisory services for the Privatization of Nigeria Commodity Exchange (formerly known as Abuja Securities and Commodity Exchange (ASCE). The Transaction Advisers to be selected are to assist the FGN to privatize the Abuja Securities and Commodity Exchange (ASCE). The operations and history of ASCE are detailed below or in ASCE website:
Abuja Securities and Commodity Exchange (ASCE), presently Nigeria Commodity Exchange was incorporated as a Public Limited Liability Company in 1998 and commissioned in 1999. It established facilities that were to serve as a model for the Securities Market in Nigeria in terms of trading system, practice and procedures and commenced live’ trading on .May 2,2001 in the securities of FSB International Bank, Inland Bank, Ashaka Cement and Niger Insurance. At inception, the Exchange was modeled after the National Stock Exchange of India. However in 2001, it was converted into a commodity exchange. This was in part due to the recognition that the securities market in Nigeria was at that time too ‘small to support two viable stock exchanges as there was one already operating in Lagos. The conversion was intended to create an alternative institutional arrangement that would facilitate marketing of agricultural produce and thereby enable players to better manage price risks in the sector.
It was the FGN’s expectation that ASCE, as a commodity exchange, would be able to attract large volumes of trade especially in agricultural produce and assist producers, processors and traders in the sector to manage production and market risks and also trade in solid mineral products, energy, and currencies. This expectation is yet to be realised as ASCE is still struggling to attract significant volumes of trade in agriculture and non- agricultural Commodity.
The main objective of this consultancy is to privatise Abuja Securities and Commodity Exchange (ASCE) and examine the overall architecture of ASCE with a view to identifying and or determining all possible private sector activities within it. In addition, the selected consultant is to ensure that the restructured ASCE provides the appropriate outlook for the implementation of government’s reform programme in the sector (advised by a separate concurrent advisory service); with prospects that are sufficiently attractive to private investors as well as being in conformity with local and international best practices.
The scope of work required of the Transaction Advisers is in the following three (B) phases:-
Phase 1:- Legal, Financial and Economic Oue Diligence
Legal due diligence
The Adviser’s tasks shall include but not limited to:
- Review of issues related to the existing legal and regulatory framework for ASCE, identifying gaps, if any, and how to remedy the situation to allow for private participation in the ownership and management of the enterprise.
- Assessment of any provisions in the existing laws, policies which limit or impose a burden on the proposed privatization of ASCE.
- Review and assess the state of agricultural financing and warehouse infrastructure and the state of the Commodity market in the sector
Phase 2:-Market Assessment
- The Adviser will conduct a market analysis using its market knowledge and contacts in order to determine the potential for selling a majority stake in ASCE to one or more strategic investors (in conjunction with raising additional capital for ASCE, if required).
- The Advisor will also assess and discuss other options that may not require a “strategic investor” and provide costs and benefits of each.
Phase 3:-Development of a Privatization Strategy & Plan
- The Advisor is expected to provide an array of options for the restructuring and privatization of the ASCE
- Recommend at least 3 options for financial restructuring, with their cost benefit analysis to the Government and in the context of the policy objectives for developing Commodity exchange markets in Nigeria
- Prepare a plan for the sale of shares of ASCE to the strategic investor(s) (depending on the results of financial due diligence)
- Co-ordinate and facilitate the execution of due diligence by potential strategic financial investors, including management of the ASCE data room.
The Federal Ministry of Finance In collaboration with the Federal Ministry of Industry Trade and investment and the Bureau of Public Enterprises (BPE) now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.
Submission of Expressions of Interest (EOIs):
Prospective Transaction Advisers should submit Expression of interest detailing the following information as basis for pre-qualification:
- Profile of firm/consortium including ownership structure and role of each corporate entity with full contact details of each firm.
- Details of direct experience advising governments in the Privatization transactions.
- Track record of successful closing of Privatizations, particularly in the commercial agricultural and or financial sectors.
- Description of roles played in at least five (5) industrial/banking Privatization transactions closed in emerging markets during the past seven (7) years (at least one of which should be in the past three (3) years).
- Relevant experience in privatization of industrial Banks/facility.
- Copies of unabridged financial reports for the last 3years
- Experience working in Nigeria and/or sub-Saharan Africa.
The attention of interested Consultants is drawn to paragraph 1.9 of the World Bank’s Guidelines: Selection and Employment of Consultants under IBRD Loons and IDA Credits & Grants by World Bank Borrower, Revised January 2011. Consultants may associate with other firms in the form of a joint venture or a sub consultancy sub consultancy to enhance their qualifications. A Consultant will be selected in accordance with the Quality and Cost Based Selection Method set out in the Consultant Guidelines
Further Information can be obtained at the address below during office hours 9.00 am to 4.00 pm, Monday through Friday (except public holidays) from Dr. Vincent O. Akpotaire, Tel: +234 813 844 5006, E-mail: vakpotaire@bpeng.org and Mr. Nelson T. Hundumofore, Tel: +234-803-787-0944: E-mall: nhundumofore@yahoo.com
Expressions of Interest shell be in English including the unabridged financial report and must be submitted in five (5) hard copies (one original and four copies plus one CD Rom), in a sealed envelope clearly marked “Expressions of Interest for Transaction Advisory Services for the Privatization of Nigeria Commodity Exchange.”
Expressions of interest must be delivered to the address below in person or by courier, not later than 3:00pm on Monday 11th August 2014.
EOI received by e-mail will be rejected
The Director General
Bureau of Public Enterprises
Hamza Zayyad House, 11 Osun Crescent,
Off Ibrahim Babangida Way, Maitama Abuja, Nigeria
Attention:
Dr. Vincent O. Akpotaire (Ag. Director, National Facilities & Agricultural Department) Tel: +234 813 844 5006
Only short-listed Consultants will be contacted
