Amakpe gets fresh breathe as Akwa Ibom, promoters sign MoU

Promoted by two American-based entrepreneurs who are combining equity capital and Akwa Ibom government investment with related US loan provided by UPS Capital business credit, the refinery was initially scheduled to commence production October this year.

The US loan is supported by comprehensive Guarantee of US Export-Import Bank and Nigerian bank guarantee provided by Sterling Bank with additional bridge loan from the Nigerian Export Import Bank.

Speaking during the MoU signing ceremony on Monday, Governor Godswill Akpabio described it as the beginning of true public-private sector partnership adding that the postponement of the ceremony earlier, was meant to protect the investment of the state government in the project.

According to the governor, the postponement was never intended to frustrate the project maintaining that it was to ensure that "due process" was adhered to.

"Today’s ceremony is aimed at settling all issues out of court. It is the first major step towards partnering with the initiators of the refinery project," he said.

Akpabio who announced that the state government would now acquire 25 percent equity share in the project amounting to $6.5 million added that the promoters of the project and other corporate organisations would take up 75 percent equity.

According to the governor, Amakpe refinery would refund $2.5 million to the state government, adding that the balance would be the state’s contribution to the project.

He said the state government would not demand any interest on the $10 million initially deposited by the state government for the project.

"We want to assist the company. $2.5 million is part of the loan, the company can take a whole of 2008 for the repayment of the loan," he stated.

The governor who pledged the determination of the state government to assist the company towards its take off added that the MoU was a clear cut and transparent way to relate with one another.

In his remarks, the president and chief executive officer of Amakpe International Refineries, Usua Amanam, said the project when completed would create hundreds of jobs while propelling the establishment of small and medium scale enterprises.

He thanked the state government for partnering with Amakpe, promising to bring in experts who would run the plant.

Present at the ceremony were the deputy governor, Patrick Ekpotu, the secretary to the state government, Okon Umana, the project facilitator, Abba Agi and the executive director, Nigeria Import Export Bank, Edet Ekere.