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Nigeria : MoU for reactivation of power plant signed by Ajaokuta Steel Company
Publish Date : 05-May-2014
A Memorandum of Understanding (MoU) is signed by Ajaokuta Steel Company Ltd (ASCL) with a private firm, 3D-High Tech Systems Ltd, for the reactivation of its 110MW thermal power plant.
Mr Joseph Onobere, the Sole Administrator of ASCL, who signed on behalf of the company, said that the MoU was in line with President Goodluck Jonathan’s recent inauguration of the National Industrial Revolution Plan.
Onobere said that the objective of the MoU was to generate energy for the steel plant and for sale to the national grid.
The sole administrator added that the company lately signed similar arrangements for the Light Section Mill, the Wire Rod Mill and the Metallurgical Training Centre.
He stated ASCL staff for their "uncommon patriotism and loyalty in defending and protecting the steel plant" and solicited their cooperation for the success of the MoU.
The Managing Director of 3D-Hitech Systems Ltd, Mr Patrick Azi, who signed the MoU for the company, said 30 million U.S Dollars (N4.8 billion) would be invested in the power plant.
He said "we are in this business of acquiring property from government or going into partnership with government with a view to revamping them, make our money as investors and leave.
"We intend to sell our products to power Distribution Companies (Discos). We are entering into power purchase agreement with these companies."
He said the company planned to build 300MW plant to run side-by-side the plant in Ajaokuta.
Azi said that after the inauguration of the plant in 45 days to come, the company would go into other areas in the plant because of its huge opportunity.
"I see no reason why Nigerians should be buying pipes from other places in the world when we have one of the best facilities.
He asked, "Ajaokuta steel plant is the second largest in the world after Russia, so why can’t we bring it up?".
