March 08, (THEWILL) – Two separate investing conglomerates, on Tuesday evening, committed close to $80 million to investment in Osun State infrastructures within the framework of Public-Private Partnership (PPP).
Hosted by Governor Adeleke and members of his cabinet, the investors include Allegiance CNG Limited, focusing on comprehensive sustainable energy solutions through Compressed Natural Gas (CNG) and First Tricon Construction Services Limited with earmarked projects across infrastructures sub-sectors.
The Allegiance CNG, led by its Managing Director, Deji Afolabi, listed several gas projects for which Osun State is to benefit up to the tune of $20 million.
Afolabi, who said his firm is among those engaged by the Federal Government for the adoption of CCG in transportation in the wake of fuel subsidy removal, said it is willing to invest in power generation for Osun State to power the industrialisation objective of Governor Adeleke, beginning with the powering of State Secretariat and Government House 24/7 at no cost.
“We are here Your Excellency with a basket of projects and services. We propose a mutually beneficial public-private partnership. The Osun Government will only provide land while Allegiance CNG will provide technical expertise, construction capabilities and private investment.
“Our principal financial partner is the African Development Bank. We have the funding already,” he assured.
Promising a major reduction in gas cost from the current one thousand, four hundred naira to about four hundred naira, the Managing Director said the proposed investment covers several gas value chains to expand the Osun economy and reduce energy poverty.
He said the plant by the firm will be stationed in three locations and reflect senatorial demography, promising to present a sample of the household gas to the Governor within two weeks.
In his own separate presentation, the Chairman of First Tricon Construction Services Limited, Remi Olumuyiwa, said his company is impressed with the infrastructure initiatives of the Governor, hence its decision to refocus a $60 million investible fund for roads, bridges, water and housing projects across Osun.
Applauding the Governor for exciting investors’ confidence with his elaborate policy innovations, Otunba Olumuyiwa said the company has handled big infrastructure projects in Nigeria, Sierra Leone, Guinea and Liberia.
He made elaborate presentations to the Governor and his team on several proposed infrastructure projects, noting that the firm is a multi-faceted company involved in building roads, bridges, and houses with funding from several investors backed by top financial institutions.
Otunba Olumuyiwa posited that the firm is not going to burden the state with financial traps, assuring that it has a strong and good relationship with financial institutions for sponsorship of projects.
“We have a very good relationship with our banks and investors. When we see what we can deliver in Osun, we have the capacity to do it. We are here because this is our country, this is our state. We are ready to work with you to meet the housing and infra needs of our people,” the company chairman stated.
Responding, Governor Adeleke assured the company chiefs that Osun is implementing a fast-tracked ease-of-doing business plan with a target on attracting investment into the state.
“These submissions here today are really massive. Osun is changing for the better. On a daily basis, various firms across the sector are reaching out to us with actionable proposals. I am glad that these two firms are really here to hit the ground running.
“We have the land. We have an enabling environment. Osun is already a huge construction site. You are welcome to the site.
“To the good people of Osun, more are coming. As I’m talking to you, more investors are knocking at our doors. We will not relent in the ongoing drive to expand Osun economy and ensure a better life for our people,” the Governor said.
About the Author
Amos Okioma is a Correspondent at THEWILL
