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Russian Builders Of Ajaokuta Steel Offer To Complete Project - Business - Nairaland

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FG Appoints Abdul-Akaba Sumaila As Sole Administrator Of Ajaokuta Steel Complex / Nigeria’s Steel Sector Comes Alive Despite Failed Ajaokuta / Inside Ajaokuta Steel Complex Where Investments Were Allowed To Rot For Years (2) (3) (4)

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Russian Builders Of Ajaokuta Steel Offer To Complete Project by cooljade(f): 1:09am On Jan 28, 2016
The Russian company that designed and built the now moribund Ajaokuta Steel Company Ltd (ASCL) about two decades ago has recently written to the federal government, indicating its willingness to return and complete the project so that the multibillion naira investment can commence production.

But it seems the federal government, which has not responded to the letter yet, is not very keen about the Russian firm’s offer to return and make the rusted company work again.

Russian TyazhpromExport, a steel industry construction company established in the late 1950s, had after the June 4, 1976 bilateral agreements signed by Nigeria and Russia, on the development of the former’s iron deposit, sealed a contract (047/04100) for the construction of a steel plant with the capacity of producing 1.3 million tonnes of steel per year.

With the contract signed, the Russian company, as it could be recalled, deployed 1,000 Russian experts and 3,500 Nigerian workers to carry out the construction exercise that was completed up to 98 per cent by October 1993. Specifically, of the 482 Units that make up the entire ASCL, 476 of them were commissioned, including three rolling mills, TPS-TBS, repair and service shops that were all put into operation.

After that feat, the steel company was abandoned and left to rot away for years. And when the federal government made the move to revive the company in 2002, the same Russian company was invited to carry out an assessment audit of what needed to be done to revive it, but the effort was later stalled when government decided in 2005 to give the company on concession to one Global Infrastructure Holdings Ltd. That agreement, too, was later said to have been cancelled in 2008.

Since then, there has been no clear-cut direction for ASCL, and the prospective money-spinner continued to rot away.

With the coming of the new government and its obvious body language to diversify the economy, one of which is to revive ASCL, the original builders, TyazhPromExport, which happened to have kept an eye on the unfortunate development of its brainchild, has again written to the government of Nigeria through the Federal Ministry of Solid Minerals Development about its readiness to make the steel company functional.

In its letter dated December 12, 2015, a copy of which was made available to LEADERSHIP, the Russian company said it did not “want to believe that Ajaokuta cannot be viable if money is spent on it”.

The officials of the Russian company said if made to work again, Ajaokuta would play a major role in President Muhammadu Buhari’s agenda on poverty eradication.

However, the Federal Ministry of Solid Minerals Development had not responded to this letter at the time of filing this report.

When contacted by LEADERSHIP to comment on the letter written to his ministry by TPE, the minister of state for Solid Mineral Development, Abubakar Bawa Bwari, acknowledged the said missive but he quickly pointed out that the Russian company was not the only one interested in rehabilitating Ajaokouta.

He spoke to our reporter on phone: “In fact, more than seven companies have presented several proposals, letters and presentations, showing their interest to complete the Ajaokuta Steel Company Ltd.

“We are being very careful not to make any mistakes and are waiting till we are able to vet all proposals before the technical team and also involve the government of their countries to certify the companies before sitting down to discuss with the firms. This time around we want to be very careful but we are willing to associate and discuss with those interested in completing the steel complex.”

He lamented that “so much had been spent for the revival of plant with nothing commensurate coming out of it.”

“The federal government spends N4 billion annually to maintain the steel plants and its workers, but we cannot continue with that,” he said.

The minister said that it was the present administration’s intention that before the expiration of its tenure, half or the whole of Ajaokuta Steel firm will be working.

“It is our intention that if Ajaokuta won’t work, at least half of it will begin to work. It can generate power and it is our intention that before the end of our tenure, half or the whole of AJSC will be working.”

Reacting to this development, a non-governmental organisation with interest on investment, Builders Hub Impact Investment Programme, said it was aware of the letter by the Russian company to the Federal Ministry of Solid Mineral Development, because it (Builders Hub) reached out to TyazhPromExport (TPE) Russia in good faith when it discovered the firm’s genuine interest to work with Nigeria in completing Ajaokuta.

“They said that they wrote several times to the Nigerian government over the years but there was response,” said Natasha Akpoti, of Builders Hub Impact Investment Programme.

“TPE said that it would be its greatest desire to fulfil a dream it shared with Nigeria many years ago. TPE is a world giant in steel plant construction and has a lot of past and present projects all over the world. TPE built India’s largest steel plants on the same technology that Ajaokuta has, which is the blast furnace. TPE was recently contacted by the Indian government to undertake the reconstruction and modernization of Roulkella Steel, which is one of the country’s largest steel amongst others,” she said.



http://leadership.ng/news/495730/russian-builders-ajaokuta-steel-offer-complete-project

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Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by irondome: 1:28am On Jan 28, 2016
cooljade:

The Russian company that designed and built the now moribund Ajaokuta Steel Company Ltd (ASCL) about two decades ago has recently written to the federal government, indicating its willingness to return and complete the project so that the multibillion naira investment can commence production.

But it seems the federal government, which has not responded to the letter yet, is not very keen about the Russian firm’s offer to return and make the rusted company work again.

Russian TyazhpromExport, a steel industry construction company established in the late 1950s, had after the June 4, 1976 bilateral agreements signed by Nigeria and Russia, on the development of the former’s iron deposit, sealed a contract (047/04100) for the construction of a steel plant with the capacity of producing 1.3 million tonnes of steel per year.

With the contract signed, the Russian company, as it could be recalled, deployed 1,000 Russian experts and 3,500 Nigerian workers to carry out the construction exercise that was completed up to 98 per cent by October 1993. Specifically, of the 482 Units that make up the entire ASCL, 476 of them were commissioned, including three rolling mills, TPS-TBS, repair and service shops that were all put into operation.

After that feat, the steel company was abandoned and left to rot away for years. And when the federal government made the move to revive the company in 2002, the same Russian company was invited to carry out an assessment audit of what needed to be done to revive it, but the effort was later stalled when government decided in 2005 to give the company on concession to one Global Infrastructure Holdings Ltd. That agreement, too, was later said to have been cancelled in 2008.

Since then, there has been no clear-cut direction for ASCL, and the prospective money-spinner continued to rot away.

With the coming of the new government and its obvious body language to diversify the economy, one of which is to revive ASCL, the original builders, TyazhPromExport, which happened to have kept an eye on the unfortunate development of its brainchild, has again written to the government of Nigeria through the Federal Ministry of Solid Minerals Development about its readiness to make the steel company functional.

In its letter dated December 12, 2015, a copy of which was made available to LEADERSHIP, the Russian company said it did not “want to believe that Ajaokuta cannot be viable if money is spent on it”.

The officials of the Russian company said if made to work again, Ajaokuta would play a major role in President Muhammadu Buhari’s agenda on poverty eradication.

However, the Federal Ministry of Solid Minerals Development had not responded to this letter at the time of filing this report.

When contacted by LEADERSHIP to comment on the letter written to his ministry by TPE, the minister of state for Solid Mineral Development, Abubakar Bawa Bwari, acknowledged the said missive but he quickly pointed out that the Russian company was not the only one interested in rehabilitating Ajaokouta.

He spoke to our reporter on phone: “In fact, more than seven companies have presented several proposals, letters and presentations, showing their interest to complete the Ajaokuta Steel Company Ltd.

“We are being very careful not to make any mistakes and are waiting till we are able to vet all proposals before the technical team and also involve the government of their countries to certify the companies before sitting down to discuss with the firms. This time around we want to be very careful but we are willing to associate and discuss with those interested in completing the steel complex.”

He lamented that “so much had been spent for the revival of plant with nothing commensurate coming out of it.”

“The federal government spends N4 billion annually to maintain the steel plants and its workers, but we cannot continue with that,” he said.

The minister said that it was the present administration’s intention that before the expiration of its tenure, half or the whole of Ajaokuta Steel firm will be working.

“It is our intention that if Ajaokuta won’t work, at least half of it will begin to work. It can generate power and it is our intention that before the end of our tenure, half or the whole of AJSC will be working.”

Reacting to this development, a non-governmental organisation with interest on investment, Builders Hub Impact Investment Programme, said it was aware of the letter by the Russian company to the Federal Ministry of Solid Mineral Development, because it (Builders Hub) reached out to TyazhPromExport (TPE) Russia in good faith when it discovered the firm’s genuine interest to work with Nigeria in completing Ajaokuta.

“They said that they wrote several times to the Nigerian government over the years but there was response,” said Natasha Akpoti, of Builders Hub Impact Investment Programme.

“TPE said that it would be its greatest desire to fulfil a dream it shared with Nigeria many years ago. TPE is a world giant in steel plant construction and has a lot of past and present projects all over the world. TPE built India’s largest steel plants on the same technology that Ajaokuta has, which is the blast furnace. TPE was recently contacted by the Indian government to undertake the reconstruction and modernization of Roulkella Steel, which is one of the country’s largest steel amongst others,” she said.



http://leadership.ng/news/495730/russian-builders-ajaokuta-steel-offer-complete-project

A pragmatic approach would be to sell off 70% of FG's stake in the facility. That would put an end to the free cheese its been dishing out to lazy workers.

I just can't imagine paying a group of people for over 30 years for doing nothing.

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Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by leo1234(m): 3:14am On Jan 28, 2016
Good to know
Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by abushman: 4:45am On Jan 28, 2016
irondome:


A pragmatic approach would be to sell off 70% of FG's stake in the facility. That would put an end to the free cheese its been dishing out to lazy workers.

I just can't imagine paying a group of people for over 30 years for doing nothing.

Bros if e pain you no vex...Have you spent time there before you conclude "30 years for doing nothing".

NL'ders and jumping to conclusion SMH undecided

1 Like

Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by Pavore9: 4:47am On Jan 28, 2016
l wonder how people are being paid monthly salaries over the years in an establishment that is generating no income!
Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by yimikaa: 5:25am On Jan 28, 2016
Where is fayemi when you need him. angry
Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by cooljade(f): 7:07am On Jan 28, 2016
You may need to read the full story here. The Russian's letter to Fayemi is also found on this link

Time to break the deadly conspiracy surrounding ‪#‎Ajaokuta‬ Steel ‪#‎Company‬ Limited!!!

I have been advised to use pseudo names in publishing this piece, but that’s not my nature. I am one who bolds up to situations and thus, I shall bear my name and consequences this report might stir.
From the 14th of August 2015, the day I had an interactive and empowerment session with the black smiths of ‪#‎Ebiraland‬; the pains in their voices daunted me. A people, whose ancestors carved a niche in ironworks way back as the 7th century suffered for want of materials to support their trade while a steel giant lay raped in their backyard by a series of unfortunate events and conspiracies.
In October, I took online to issue a petition pleading with ‪#‎President‬ ‪#‎Buhari‬ to revive ASCL; and with your support we were able to get hundreds of signatures. Since that day, I left no stone unturned to discover the happenings so as to better understand the best path forward. I have taken time to make this report as brief and as simple as possible and urge you all to take time and read.

https://web.facebook.com/NatashaAkpoti/posts/10154065985231758

1 Like

Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by irondome: 10:27am On Jan 28, 2016
abushman:


Bros if e pain you no vex...Have you spent time there before you conclude "30 years for doing nothing".

NL'ders and jumping to conclusion SMH undecided

Funny, let me say, I lived there for 4 years over 32 years ago. And the stark reality that there has not been any significant output althrough these years unpins why investment in that facility so far has been a waste.

You can now shake your head at yourself, especially if you are one of the beneficiary of the free cheese
Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by abushman: 1:59pm On Jan 28, 2016
irondome:


Funny, let me say, I lived there for 4 years over 32 years ago. And the stark reality that there has not been any significant output althrough these years unpins why investment in that facility so far has been a waste.

You can now shake your head at yourself, especially if you are one of the beneficiary of the free cheese


Just 4 years... undecided
Re: Russian Builders Of Ajaokuta Steel Offer To Complete Project by obstead200(m): 2:57pm On Jan 28, 2016
A good development. If only it wud work..............

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