FG GIVES FIRM 2 WEEKS ULTIMATUM TO DREDGE IMO RIVER

The Federal Government has given Dayson Holding Limited, a core investor of Aluminium Smelter Company of Nigeria (ALSCON) to come up with a technical implementation strategy, bill of quantity, operational plan and design and roadmap for the dredging of Imo River within two weeks.

It government frowned at the delay to dredge the Imo River after Dayson Holding Limited had signed an agreement in 2005 and collected the sum of $120,000,000 (N19.2 billion), and ordered the company to act fast or face the music.

Government also called on the company to resolve whatever problem it had with relevant stakeholders on the acquisition and effectiveness of the company, expressing displeasure on the undercurrent move to bring in a subsidiary that was not originally part of the contract agreement signed.

Vice President, Namadi Sambo, gave the charge at a meeting with the Minister of Transport, Management of Dayson, Bureau of Public Enterprises and other stakeholders, stressing that it was unacceptable for Rusal, which was a technical partner of Dayson but not mentioned in the privatization agreement to be running ALSCON.

He directed that the relevant clause in the agreement be amended to reflect the situation on ground, adding that the position of Rusal should be spelt out in the acquisition agreement such that it bridges the gap between both companies as Rusal was a subsidiary of Dayson Holdings.

Sambo also constituted a committee comprising Nigeria Electricity Regulatory Commission (NERC), Bureau of Public Enterprises (BPE), National Gas Company, Gas Aggregator, Shell and Dayson to ensure that Dayson obtains a licence to be able to generate and sell electricity and guide Dayson on all procedures to be adopted.  The committee has two weeks to submit its report.

The vice president also noted that the purpose for privatizing the company was not achieved as intended by government, stating that ALSCON was sold because of its potentials and viability.

He directed BPE, Dayson and the Legal Department of his office to meet and address the lingering lacuna in the privatisation agreement.

The vice president further stated that government was ready to offer all the necessary guarantees to Shell Petroleum Development Company to enable them supply the gas requirement of ALSCON so that they coiuld put the power plant of 500 mega watts to effective use.  He also directed them to report their actions in two weeks time.

Earlier, Dayson said it had planned to produce electricity and sell it to the unbundled companies for connection to the national grid but that there should be a commercial framework for gas to be supplied to the company.

It said by the end of 2012, it would ensure that it attains its desire to connect to the national grid but regretted that there was no enough gas for now to get the company work half of its capacity.

The National Gas Company also complained that unless the issue of unpaid subsidy was cleared it might not be possible to supply the product.