Investment in Eleme Petrochemical hits $2b

Investment in Eleme Petrochemical hits $2b

The Bureau of Public Enterprises (BPE) has put the total investment by the investors of Eleme Petrochemicals at $2 billion since privatisation.The agency, which expects the investment to reach $4.2 billion by 2020, insisted that the sale of Eleme Petrochemicals to Indorama was transparent and followed due process with all the necessary approvals given by the National Council on Privatisation (NCP).

It also described the transaction as one of the success stories of the Federal Government’s privatisation programme in terms of compliance to the executed Share Purchase Agreement (SPA)/Post Acquisition Plan (PAP, contribution to the Gross Domestic Product (GDP) and the creation of employment in the country.

Acting Director General of the Bureau, Dr. Vincent Onome Akpotaire, represented by the Director, Mines & Steel Development Department, Mallam Abdullahi Muhammad Dikko stated these at the Investigative Hearing on the Privatisation Process and performance of Eleme Petrochemicals by the House of Representatives Committee on Privatisation.

Akpotaire disclosed that four companies were pre-qualified for the bidding process at the close of the deadline on May 2005 for the submission of Expression of Interests (EOIs), which after evaluation, only Dangote Chemicals Co. Consortium, Indorama Group and LG Chem were shortlisted.

However he stated that LG Chem subsequently pulled out on the grounds that it intended to participate as an Operations and Management (O & M) contractor and not to acquire controlling interest in EPCL which left the contest between Dangote Company Consortium and Indorama Group and in the end; the latter won to take over the company at the cost of $225 Million from the earlier $215,088, 888 it had bid with a commitment to invest $150 million to be sourced from the International Finance Corporation (IFC) to revamp the company’s plants and facilities…Read more

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