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RUSAL in final ALSCON take
over
�
Inspects plant next week
� ISPAT may take control of
NIOMCO
By
Bassey Udo
Snr
Correspondent, Abuja
Russian
Aluminium (RUSAL) is in its final bid to take over Aluminium Smelter
Company of Nigeria (ALSCON), Ikot Abasi in Akwa Ibom
State.
Negotiations have been on since July with a committee comprising Power and Steel Minister Liyel
Imoke, National Council on Privatisation (NCP) Chairman Akin Kekere-Ekun
and Bureau of Public Enterprises (BPE) Director General Julius Bala.
Though
the terms of the negotiations are unclear, the Russians are
scheduled to visit the plant next week for a final
inspection.
�Negotiations
on the sale of ALSCON is closer to being sealed. RUSAL team is billed to
visit Ikot Abasi early January 2005 for the final inspection of the
plant�, an authoritative Presidency source said in Abuja last
week.
According
to him, findings from the trip are expected to help RUSAL announce its
final price for the plant, adding that the team, which has already
completed inspection and evaluation of the plant�s gas supply
infrastructure, would now focus on the assessment of the cost of dredging
the Imo River since the government insists that it will not to be involved
in that aspect.
Abuja
values ALSCON at $250 million but RUSAL is said to have offered $160
million with a proviso that it be allowed to deduct the cost of dredging
the Imo River from its final price. The government�s reserve price is $500
million.
Besides,
RUSAL has reportedly threatened to pay even less if, after its planned
inspection, its fears are confirmed that some components of the plant have
started deteriorating since the original managers, Ferrostaal AG of
Germany, left it last July.
ALSCON
is currently handled by a corps of Nigerian engineers along with four
Ferrostaal staff whose only reason for hanging around is to explore the
prospects of winning the contract for the completion of the second pot
line from the new owners.
However,
RUSAL appears to be fishing in troubled waters as BFIG counsel Adeniyi
Akintola recently threatened further legal action following reports that
the government was negotiating the sale of the
plant.
He
said: �The government would be playing with fire. They are already aware
that hearing in the case filed against any action in that respect has been
fixed for January 14, 2005.�
RUSAL
was pre-qualified by BPE together with BFIG, a consortium of
American-based Nigerians, to bid for Abuja�s 77.5 percent equity in ALSCON
as core investor.
At
the financial bids opening on June 14, RUSAL was disqualified for
submitting a conditional bid against NCP guidelines. BFIG was declared
preferred bidder with an offer of $410 million.
Curiously,
BFIG was disqualified on June 9 in controversial circumstances, leading to
a legal challenge at an Abuja High Court. Hearing in the case is slated
for January 14, 2005.
BFIG
asked the court to restrain the government or its agents, particularly the
BPE, from inviting any person(s) or group to bid for the purchase of any
share held by the Federal Government in ALSCON.
It
also joined RUSAL as an interested party, asking the court to restrain it
from entering into any form of discussions with the government for the
sale of the plant.
However,
Bala told journalists last month that following the failed bid to select a
core investor for ALSCON, the government had to change the strategy to
�willing-seller, willing-buyer� to enable it conclude the
privatisation.
Bala
and Imoke, on separate occasions, confirmed that discussions were on with
several investors interested in the plant, though they held close to their
chests the identity of those involved.
The
only conjecture was when President Olusegun Obasanjo, during his last
official visit to Akwa Ibom State, queried the disqualification of RUSAL
and ordered that discussions be re-opened with them
immediately.
He
claimed that the Russians are one of the few groups left in the world with
the technical competence and expertise to turn the plant
around.
Meanwhile,
ISPAT, the new managers of Ajaokuta Steel Company (ASC), may take over
operations at the National Iron Ore Mining Company (NIOMCO), Itakpe in
Kogi State.
Discussion
on the possible take over of the NIOMCO has been going on for weeks
between ISPAT and representatives of the Ministry of Power and Steel, but
a final decision is to be taken early next year after the visit to the
plant to assess its facilities.
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