AFAM POWER PLC
Afam, River State, Nigeria.
Afam Power Plc is a thermal power plant located in the gas rich Rivers State. The plant has an installed capacity of 977MW. It is an open cycle gas turbine. The plant was built between 1975 and 2001. Afam I-IV has an operating capacity of 836.6MW, while Afam V possesses the capacity to generate 276MW of electric power.
Given its strategic position in the Niger Delta region, Afam Power Plc has the potential of becoming a leading power plant in Nigeria due to its proximity to its source of natural gas and oil, nearness and availability of other raw materials and the increasing demand for power by the multinational companies in the region.
Before its incorporation as a distinct Public Limited Liability Company on November 8, 2005, Afam Power operated as a semi-autonomous body headed by a Chief Executive Officer (CEO), supported by a management team that reports directly to the CEO, Power Holding Company of Nigeria (PHCN). Full unbundling and transfer of assets and liabilities were completed on 1st July 2006.
In 1999, the FGN began an aggressive restructuring of the power sector with several aims, including introduction of efficient, private sector standards and management principles, and methodology, leading to reliable power.
In 2001, the FGN approved a National Electric Power Policy (NEPP), followed in 2005 by the Electric Power Sector Reform (EPSR) Act. EPSR Act provides the legal authority for the unbundling of Nigeria’s power utility as well as the introduction of a new, regulatory scheme managed by the Nigerian Electricity Regulatory Commission (NERC), an independent regulatory commission, to guarantee open access and ensure efficiency throughout the industry.
In 2005, Shell Petroleum Development Company (SPDC) made attempts to buy Afam I-IV and V but the negotiations fell through instead SPDC initiated the construction of Afam VI. Outright sale option was adopted by the Bureau for Public Enterprises in the sale of Afam I-V which was culminated on the 1st of November 2013. The new owners are Televeras Ltd.
Credit: The Bureau of Public Enterprise.