Hey fellow nairalanders, i need advice on a biz issue. A colleague of mine wants to open up a commercial intergrated poultry farm here in Nigeria. This is a multi million dollar project in conjunction with a foreign based in Thailand. The project is to be financed by a foreign bank through a local affiliate. We have commenced serious discussions with the host state government where the project will be sited. They have agreed to provide the land for the project,60hectares and also provide some basic infrastructures there like access roads, electricity but they are not ready to guarantee the foreign loan. we were willing to give them equity holding up to a very interesting percentage. They reasoned that with the state government guaranteeing the loan and having a say on the board, that it would create a set back towards meeting the loan repayment schedule. Please i need serious advice on how we will go about securing a private partner that can help in getting he bank guarantee. Here we are talking about a poultry system that is the first of its kind in Nigeria,nay West Africa. A similar project currently exists in Angola. I always have a very great respect for advice and views expressed in Nairaland. I need information guys.

Sky horse ltd will be of great help. Nthnymarcel@yahoo.com

nadico:
They reasoned that with the state government guaranteeing the loan and having a say on the board, that it would create a set back towards meeting the loan repayment schedule.

How exactly does this inhibit the loan repayment? can you explain more?

I think the state is being fair , in the sense that they are providing solid equity(land ) , and land combined with basic amenities are a vital part of your business plan, so they deserve a say as one of the board of directors , but if this is a genuine multinational deal you and your colleagues should be able to drum up, enough liquid capital to buy the 60 hectares of land with out the state intervention, or am i getting something wrong yeah