Talks resume as 2001 agreement scrapped...
Nigeria's National Electric Power Authority (NEPA) and Shell Petroleum Development company have begun fresh talks for a new contract for the take over of the Afam Power Plant in Port Harcourt, Rivers State.
The two parties had reached an agreement in principle in late 2001, where Shell, Nigeria's biggest oil producer, was to refurbish the four generating units in Afam at an estimated cost of $ 550 million.
However, protest from NEPA workers and disagreement on how to offset the N13 billion debt owed on the operations of the power plant, stalled the take-off of the project earlier billed for 2002.
The Managing Director of NEPA, Engineer Joseph Makoju, said in Lagos at the weekend that the two parties have now gone back to the negotiating table.
"Meetings are currently going on between NEPA and Shell over the Afam agreement. We hope to reach agreement soon for Shell to take over," Makoju said.
The refurbishment programme is expected to generate about 400 mega watts (mw) when completed next year.
Afam Power plant, built in the early 1960s, with an initial capacity of 760 mw, was completely damaged due to an explosion in 1997. Six operational staff died in the incident.
