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Sections News Editorial/Opinion Cover Choice Arts & Life Business Politics Sports   Subscription Form Click here       Daily Independent Online.         * Monday, July 05, 2004. Delta leaders want Delta Steel firm bid cancelled •Criticise $585 million burden on investors By Uwakwe Abugu Bureau Chief, Warri Prominent leaders of thought in Delta State have accused the Federal Government of deliberately scaring away prospective investors from buying the ailing Delta Steel Company (DSC), Ovwian-Aladja in the state by placing a burden of $585 million on the company. They said this was capable of causing the permanent death of the steel plant, as no investor would want to be saddled with such debt and therefore called for the cancellation of the ongoing bid process. Briefing journalists in Warri the leaders led by Chief Gabriel Safia gave details of the stringent conditions imposed on investors as the dredging of the Escravos at the cost of $150million and the completion of the Itakpe-Warri rail line that will cost $250 million. The conditions also include provision of captive power plant as obtained in Ajaokuta Steel Company to provide independent power to DSC which will cost $110 million, the rehabilitation of the plant for steel production at the cost of $55 million and another $20 million working capital. The three investors that have dared to bid under the foregoing conditions include BUA International ($20.5 million), NBTC ($10 million) and Osaka Steels Ltd that has been involved in its rehabilitation, which offered $2.55 million. The leaders said their conclusion is that there is a ploy to kill the steel plant because “With all the optimism in the world, it is difficult to see how a profit-oriented investor would stake so much to reactivate the steel plant after paying the bid price.” According to them, apart from throwing the over 50,000 Nigerians who are dependent on DSC, the eventual death of the steel company will increase youth restiveness not only in the state but also across the Niger Delta. They noted that the other effects of the imminent death of the firm include loss of revenue by the federal and Delta State governments and the scuttling of the dream of making DSC supply 95 per cent of shortfall of yearly production of steel in the country. They explained that they have made several representatives on the matter to the government and its agencies, urging the government to remove all these conditions that they say are mostly extraneous so as to attract competent investors that can turn the plant around.       Copyright� 2002. All Rights Reserved Independent Newspapers Limited Block5, Plot 7D, Wempco Road, Ogba, P.M.B. 21777, Ikeja, Lagos State, Nigeria. www.dailyindependentng.com e-mail: [email protected]

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