Nigerian Government on Monday inaugurated the Ajaokuta Presidential Project Inauguration Team (APPIT).
This came as government moved to revamp the company following a recent agreement it entered with Russia to resuscitate the steel company.
During the inauguration of the team in Abuja, the Secretary to the Government of the Federation (SGF), Boss Mustapha, who heads the team said that the Ajaokuta Steel plant had languished in economic unproductivity for about four decades and that previous efforts to revive it proved abortive.
The development, he said had resulted in avoidable massive foreign exchange losses at an intolerable opportunity cost to the country.
He added that the urgent need to redress these avoidable challenges brought about the current Presidential intervention.
“This is further underscored by difficulties being witnessed with present challenges in the global oil industry,” Mustapha said.
He noted that the revamping of the Ajaokuta Steel Plant would present a unique opportunity to make Nigeria West Africa’s largest fully integrated steel producer as well as accelerate the country’s industrialisation, chiefly in steel-related industries.
“This government places a lot of value on the diversification of the economy, hence, Mr President’s participation at the Russia-Africa Summit last year in Sochi, to discuss the resuscitation of the Ajaokuta Steel Plant with his Russian counterpart, President Vladimir Putin.
“Following the bilateral discussions in Sochi, Russia, the Ajaokuta Steel Project is to be resuscitated on the basis of a Government-to-Government agreement with funding from the Afreximbank and the Russian Export Centre. However, one of the key issues discussed by the parties was the Technical Audit, Upgrade, Completion and Operation of the Ajaokuta Steel Company.
“Today’s inauguration of the ‘Ajaokuta Presidential Project and Implementation Team (APPIT)’ is therefore meant to kick start the process of re-directing the activities of the Steel Plant with the aim of bringing the Steel Project back to life for the growth and economic development of our dear nation.
“I am happy to note that preliminary works have commenced determining parameters for the effective and coordinated take-off of rehabilitation works on the Steel plant. It is on this note that Mr President graciously approved the composition of this Implementation Team that is being inaugurated today,” he said.
Part of the duties of the project team include engaging in all bilateral negotiations as shall be necessary on behalf of the Federal Government of Nigeria leading to the execution of the government-to-government agreement with the Russian Federation and the Afreximbank.
It will also provide all relevant technical and other inputs necessary to close the government-to-government negotiations, the team is to ensure that the best extreme possible, all relevant raw materials are sourced locally, bearing in mind the local content provisions and the Presidential Executive Order 005.
The team is also expected to scrutinize and assemble Nigerian Content Engineering, Procurement and Construction (EPC), Special Purpose Vehicle Contractors which will embody the Co-Concessionaire representing Nigeria’s interest in the Build-Operate-Transfer (BOT) Concession;
Ensure the resuscitation of Ajaokuta Steel Plant (ASP) based on the original design, and ensure timely commissioning of the Ajaokuta Steel Plant (ASP) within a reasonable period to be agreed upon by the parties to the agreement and recommend primary tenure of a Build-Operate-Transfer (BOT) Concession.
APPIT members include the Minister of Mines and Steel Development, who would serve as alternate chairman, Permanent Secretary, Ministry of Finance, Solicitor General of the Federation and Permanent Secretary, Ministry of Justice, as well as Mr Gabriel Aduda, a Permanent Secretary in the Office of the SGF.
Others are the Sole Administrator, Ajaokuta Steel Company Ltd, Sole Administrator, National Iron Ore Mining Company, Engr. Vincent Dogo, Prof. Elegba S.B., Dr. Godwin Adeogba (the trio being Industry Experts), Director-General, ICRC and Director Steel, Ministry of Mines and Steel Development.
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