Ava Cement: Igbinedion’s parting gift

Chief Lucky Igbinedion (bending),
ex-governor of Edo State, with Chinese
investors, when he laid the foundation
of Ava Cement Company in Akoko Edo
Local Government Area of the state. Uchechukwu Olisah writes on the ongoing construction work of a cement company in a remote village in Edo State and its likely economic benefits to the community and the state in general.

A major industrial revolution is underway in Edo State. This is courtesy of the ongoing construction of 2500 tons per day clinker cement factory and two by 10MW captive gas turbine power plant as well as associated facilities in the sleepy, hilly and rusty village of Egbigere in Akoko Edo Local Government Area of the state.


The cement factory is the outcome of a joint commitment, which the Edo State Government during the administration of the immediate past governor, Chief Lucky Igbinedion, entered into with the New Era Group of China in 2005.


The evaluation report of the Edo State Ministry of Environment and Solid Minerals informed the establishment of the cement factory through its consultants on limestone and gypsum deposits in Edo North Senatorial District of the state. It is estimated that there are 6.4 billion tons of limestone and 526 million tons of gypsum deposits in the North of the state.


Besides, principal raw materials such as clay, shale and gypsum, which are needed for the manufacture of cement, are found in Warrake, a town close to the site of the cement factory.


Going by the joint letter of commitment it signed with the Chinese investors, the Edo State government assisted with feasibility studies, particularly in the area of data and local research, mineral surveys, all regulatory approvals, compensations to community, ownership documentation for land/site, Environmental Impact Assessments (EIAs) studies, local cost of feasibility studies and contribution of 15 per cent of the financial aspect of the project.


To underline the seriousness attached to the project and in order to complete some of the activities, especially the feasibility studies necessary for the taking off of the construction of the factory, which goes by the operational name Ava Cement, the Chinese consortium financing and executing the project visited the factory location, mineral sites, different stakeholders in Edo State and indeed Nigeria on four occasions.


In addition, a 12-man delegation from China worked with the local technical committee set up by the Edo State Government and two consultant professors from the Obafemi Awolowo University (OAU), Ile-Ife and Ambrose Alli University, Ekpoma, for six months to gather data and prepare the pro-forma feasibility studies. The Louyoung Cement Research Institute, China, put the final feasibility study for the project together.


With the completion of all pre-contract signing activities and the acceptance of the feasibility study by all stakeholders, the Chinese investors offered a proposal for project development, financing and ownership. The result was the signing of a firm investment contract by all stakeholders on 1st November 2006 in Beijing, China.


So, the stakeholders mandated New Era Engineering Corporation to carry out an Engineering, Procurement and Commissioning (EPC) of a 2500 ton per day cement plant to be established in two phases with power plants, which would be fuelled by natural gas.


Other associated facilities that will come on stream with the Ava Cement project are a modern office complex, 150 units housing estate with clinics, shopping mall, community centre, water treatment equipment and the renovation of the Edo State Government moribund Ojirami Water works and dam.


Moreover, all the raw materials needed for the operations of the factory will be obtained from Edo North axis of the state, where the limestone will be mined within a perimeter of four kilometres from the factory premises. Ava Cement is expected to sell both bagged and bulky cement to buyers.


The construction and eventual take off of production by the company are expected to give rise to the growth of ancillary services, as packaging materials would be bought locally from bag manufacturers.


Indeed, the feasibility study, according to the stakeholders, which include the Edo State Government and the China No.17 Metallurgical Construction Company Limited, referred to as 17MCC-financier and contractor of the cement plant, shows that excess capacity still exists in the bag manufacturing industry, otherwise investors would have set up a plant for making bags.


Questions have been raised as to the project’s financial health. But the stakeholders have been quick to explain that the pro-forma financial statements and the financial analysis show that all indicators, including internal finance profit rate among others are sound and the project has the strong wherewithal to service debts, make good returns to the investors and resist risk.


At the cement factory’s foundation laying ceremony on 17 May 2007, the then governor, Igbinedion, said the people of Akoko Edo are lucky to have the factory sited in their locality. He advised the people of the local government area to seize the opportunities, particularly those of employment and others, which are economic and commercial in nature, being created by the location of the factory in their area.


Igbinedion had emphasised that for them to fully utilise such opportunities, youths in the locality must be educated so that they can not just be employable but also function meaningfully in the broad spectrum of activities to be set off by the Ava Cement Company’s eventual commencement of full operations. Igbinedion explained that he had no doubt in his mind that the new administration in the state will give the Chinese investors the support they need.


Also speaking on the occasion, a representative of the Chinese investors, Mr. Su Nelson, assured that the project as envisioned would be completed within two years, and that among their objectives is the need to give a boost to Nigeria’s economic development.
: Igbinedion’s parting gift

Chief Lucky Igbinedion (bending),
ex-governor of Edo State, with Chinese
investors, when he laid the foundation
of Ava Cement Company in Akoko Edo
Local Government Area of the state. Uchechukwu Olisah writes on the ongoing construction work of a cement company in a remote village in Edo State and its likely economic benefits to the community and the state in general.

A major industrial revolution is underway in Edo State. This is courtesy of the ongoing construction of 2500 tons per day clinker cement factory and two by 10MW captive gas turbine power plant as well as associated facilities in the sleepy, hilly and rusty village of Egbigere in Akoko Edo Local Government Area of the state.


The cement factory is the outcome of a joint commitment, which the Edo State Government during the administration of the immediate past governor, Chief Lucky Igbinedion, entered into with the New Era Group of China in 2005.


The evaluation report of the Edo State Ministry of Environment and Solid Minerals informed the establishment of the cement factory through its consultants on limestone and gypsum deposits in Edo North Senatorial District of the state. It is estimated that there are 6.4 billion tons of limestone and 526 million tons of gypsum deposits in the North of the state.


Besides, principal raw materials such as clay, shale and gypsum, which are needed for the manufacture of cement, are found in Warrake, a town close to the site of the cement factory.


Going by the joint letter of commitment it signed with the Chinese investors, the Edo State government assisted with feasibility studies, particularly in the area of data and local research, mineral surveys, all regulatory approvals, compensations to community, ownership documentation for land/site, Environmental Impact Assessments (EIAs) studies, local cost of feasibility studies and contribution of 15 per cent of the financial aspect of the project.


To underline the seriousness attached to the project and in order to complete some of the activities, especially the feasibility studies necessary for the taking off of the construction of the factory, which goes by the operational name Ava Cement, the Chinese consortium financing and executing the project visited the factory location, mineral sites, different stakeholders in Edo State and indeed Nigeria on four occasions.


In addition, a 12-man delegation from China worked with the local technical committee set up by the Edo State Government and two consultant professors from the Obafemi Awolowo University (OAU), Ile-Ife and Ambrose Alli University, Ekpoma, for six months to gather data and prepare the pro-forma feasibility studies. The Louyoung Cement Research Institute, China, put the final feasibility study for the project together.


With the completion of all pre-contract signing activities and the acceptance of the feasibility study by all stakeholders, the Chinese investors offered a proposal for project development, financing and ownership. The result was the signing of a firm investment contract by all stakeholders on 1st November 2006 in Beijing, China.


So, the stakeholders mandated New Era Engineering Corporation to carry out an Engineering, Procurement and Commissioning (EPC) of a 2500 ton per day cement plant to be established in two phases with power plants, which would be fuelled by natural gas.


Other associated facilities that will come on stream with the Ava Cement project are a modern office complex, 150 units housing estate with clinics, shopping mall, community centre, water treatment equipment and the renovation of the Edo State Government moribund Ojirami Water works and dam.


Moreover, all the raw materials needed for the operations of the factory will be obtained from Edo North axis of the state, where the limestone will be mined within a perimeter of four kilometres from the factory premises. Ava Cement is expected to sell both bagged and bulky cement to buyers.


The construction and eventual take off of production by the company are expected to give rise to the growth of ancillary services, as packaging materials would be bought locally from bag manufacturers.


Indeed, the feasibility study, according to the stakeholders, which include the Edo State Government and the China No.17 Metallurgical Construction Company Limited, referred to as 17MCC-financier and contractor of the cement plant, shows that excess capacity still exists in the bag manufacturing industry, otherwise investors would have set up a plant for making bags.


Questions have been raised as to the project’s financial health. But the stakeholders have been quick to explain that the pro-forma financial statements and the financial analysis show that all indicators, including internal finance profit rate among others are sound and the project has the strong wherewithal to service debts, make good returns to the investors and resist risk.


At the cement factory’s foundation laying ceremony on 17 May 2007, the then governor, Igbinedion, said the people of Akoko Edo are lucky to have the factory sited in their locality. He advised the people of the local government area to seize the opportunities, particularly those of employment and others, which are economic and commercial in nature, being created by the location of the factory in their area.


Igbinedion had emphasised that for them to fully utilise such opportunities, youths in the locality must be educated so that they can not just be employable but also function meaningfully in the broad spectrum of activities to be set off by the Ava Cement Company’s eventual commencement of full operations. Igbinedion explained that he had no doubt in his mind that the new administration in the state will give the Chinese investors the support they need.


Also speaking on the occasion, a representative of the Chinese investors, Mr. Su Nelson, assured that the project as envisioned would be completed within two years, and that among their objectives is the need to give a boost to Nigeria’s economic development.