Tag Archives: As Unfortunate

Amakpe Refineries: CEO Describes Akwa Ibom Govt Divestment As Unfortunate

25 Sep

Eket (Akwa Ibom, Nigeria) – The Management of Amakpe International Refineries in Eket, Akwa Ibom, has described the withdrawal of the state government from the project as unfortunate.
Mr. Nsima Ekere, the State Deputy Governor, on September 12, announced the pull out of the state from the proposed 12,000 barrels per day (bpd) refinery project.
Ekere directed the management of the refinery to refund the state’s equity contribution within 21 days, saying it discovered that the promoters lacked the funds to undertake the project.
In his reaction, Chief Usua Amanam, Chairman/CEO of the project, told newsmen that the decision of the government was unfortunate.
Amanam said that the withdrawal of the state came at the time when the refinery had been fabricated and ready for installation, adding that the Department of Petroleum Resources (DPR) had certified the design and fabrication.
He said that raising capital from financial institutions to finance major projects was legal if the company could meet the lending conditions and stressed that the refinery had the confidence of both Nigerian and U.S. financial institutions.
The chairman said that although a consortium of Nigerian and US banks approved 24. 6 million dollars loans, the refinery drew down only 14.02 million dollars from Sterling Bank and NEXIM Bank in line with the resolutions of the board.
He dismissed allegations that the promoters took loans without the consent of the government, saying that Akwa Ibom Investment Property Company (AKIIPOC) represented the interests of the state government on the board.
“There is absolutely no basis for the decision to divest and ask for a refund of government’s investment within 21 days when we have deployed the finances in addition to the project loans and promoters’ equity to fund fabrication of the first phase of 6,000 barrels per day .
“The U.S lenders required evidence of full application of promoters’ equity contribution of 12.3 million dollars and AKIIPOC ‘s investment in the refinery project as condition precedent to disbursement of approved loan.
“How can anyone say that we lacked the requisite funds; bank loans are indispensable for projects of this magnitude.
“We think that the reasonable thing Akwa Ibom government has to do is to negotiate the divestment with the Amakpe promoters and majority shareholders to allow for other Niger Delta states and foreign investors that have indicated interest in investing in the project,” he said.
He said that a three-man delegation from the state, led by the secretary to the state government, visited the U. S to verify the status of the fabrication in 2010.

%d bloggers like this: