AFC Leads Initiative to Revitalize Electric Power in Rivers State
Injects new lease on life to Rivers State Independent Power Project

Lagos, 6 April, 2008 - The 24-month initiative is a central part of the Rivers State Government’s objective of providing reliable power to its citizens through a sustainable public-private partnership (PPP). For AFC, it is equally an opportunity to offer a commercial solution to power delivery where solely public sector provision has not worked.

AFC, its financial partner ICMG Securities, and its technical partner SEPCO will mobilize funds to upgrade various power plants in the state, as well as rehabilitate the existing transmission and distribution system.

AFC will manage and operate the generation, transmission and distribution assets, acting as an operating partner in generation and a majority ownership partner in distribution. It will invest in an upgrade of assets across a broad spectrum, and will work with the Rivers State Government to design a commercially viable tariff structure. It will also help the authorities create payment security mechanisms, including pre-payment metering system to improve collections and overall revenues.

AFC is Africa’s leading institution for PPP solutions to the continent’s infrastructure deficit. Its recent experience includes a leading, ongoing role in the Presidential Committee for the Accelerated Expansion of the Power Sector in Nigeria, as well as a mandate to lead the construction of a 3600 megawatt coal-fired power station in Kogi State of Nigeria. The corporation is also financing an emergency power generation project in Guinea-Bissau.

SEPCO is a world class Chinese EPC contractor and O&M company whose experience includes significantly large power projects in China, India and Nigeria.

Despite producing 40 percent of Nigeria’s oil, Rivers State remains significantly under-supplied in power. Its estimated demand for power substantially exceeds current generation capacity of 186 megawatts—drawn from the state’s Independent Power Provider (IPP) system and the national grid. The state’s distribution network is also weak, with aging and overloaded equipment.