#Fact about Olokola: Free Trade Zone/ Liquefied Gas Project. The difference must be made between the Olokola Free trade zone and the Olokola Liquefied gas project. Olokola free trade zone is a joint project between Ogun and Ondo state Government with equal land contribution into a zone under the management of the Nigerian Export processing Zone( NEPZA). The rules and regulations governing the zone are as administered by Nepza and an agreement establishing such relationship was signed by both states. The rules are general rules covering free trade zone with modification by the two states to suit their purpose. Whereas, the OKLNG project is a project conceptualised as a gas liquefying project by NNPC and other strategic investors Shell, Chevron and British Gas. At conception based on the feasibility of the project, it was located in Ode omi in Ogun state. The two projects are therefore very different and the relationship between them will be established. The Olokola free trade zone company registered with Nepza was established under NEPZA laws to take over the management of the Olokola free zone with running of the project under the rotational chairmanship of Ogun and Ondo state and equal membership from both States. The development of the large expanse of land so acquired and placed under the management of the zone company requires huge financing and other technical competence not available to the states thus the need for experts who have successfully managed such zones. Various expressions of interest were received and the company penciled down to ipem a subsidiary of Rent a port a Belgian company. The management of the Olokola free trade zone was therefore taken over by Ipem for the purpose of development and general adminstration of the zone under NEPZA with 80 20 percent ownership 80 ipem and 20 by both state. The company wanted 90 but a case was strongly made for the participation of the local community to establish and ensure their ownership of the project and so the states took over further 10 holding it in trust for its communities. The zone managers therefore took over the management of the company but not before the initial process of land acquisition and compensation was paid to the communities. For the initial phrase a total compensation of 116 million naira was to be paid by Government to the land owners. This was a process supervised the OKlng project sponsors because of their interest which would be established. Out these 116 million, 37 million could not be paid because of lack of documentation, duplication and no proof of transfer of benefit in case of deceased landlords. This was paid back to Government treasury with acknowledgment from the office of Accountant general of the state. It is important to point out that the states had representatives on the board of the zone company to ensure that the interest of the people are taken care of, which is the sole reason for the project. Land allocation is therefore done by the company and not the states and payments made to the company and not the states. The various companies wanting to establish in the zone are scrutinized also by a committee of ondo Ogun and Nepza. The OKLNG project realized that the initial economics of the project will be improved upon if it is located in the free zone to take advantage of the benefits of the zone. Approval was finally given by NEPZA for them to operate in the zone as a tenant and the project does not belong to either the states or the zone company However as part of protection for the communities and the state at large, a representation was made for a share of the project which was a difficult task but granted eventually for 10 share to the 2 states. The process of perfecting this was still ongoing at take over by the new administration in the state. A community forum was established and a Project Manager appointed by the state to liaise with the communities, take care of the wish list and wants. One of the critical things was to ensure that majority of employment go to communities. One of the modalities for ensuring that communities are not spectators is the establishment of the Oni petroleum development school to ensure that the youth are work ready for the various projects coming to the zone. Also a community association with the states meet monthly for the purpose of review of the project and that is why a relatively peaceful atmosphere was established. The youth in the communities were sponsored to Warri petroleum institute prior to establishment of the school at ONi in ogunwaterside and others to Donbosco institute at Akure and some of the students are just completing their studies. Projects of this magnitude have the potential of changing the economy of not just the state but the nation at large and should not be sacrificed on the alter of bitter politics. The state CANNOT and does not have a right of allocation of land on this project to any company and so could not have allocated to dangote but the Zone company which is out of management and financial control of the states The international company cant allocate a land to two companies as alluded to. They are professionals who run company and NEPZA supervises all allocations It is total imagination saying that Daniel and cronies own a percentage of the company as the structure is available at NEPZA the supervising authority. At no point was 1 million dollars received for the purpose of the zone from Dangote and paid to Government coffers. Total mix up of facts. The only 1 million U.S dollars received by the state was from Zambeef a South African company who wanted to establish a diary farm at Ikenne Remo. They have since been frustrated by the state government. That is not part of the Olokola free zone. Most of the companys left at inception of the new administration because it was obvious they were not interested in the project. Coupled with the fact that nothing was happening regarding the development of OKLNG and the Deep Sea Port project which the companies regard as critical for the success of the project. Also important to add that development of the bridge linking Ogun to the rest of the country was an important component of the bond that was stalled. The need for partnership apart from technical competence also stems from lack of adequate capital required for the project of this magnitude. The responsibility of any Government is to way all options for the benefit of the people. The infrastructure and companies will operate in the zone for the peoples benefit for jobs, infrastructure. Also payee tax by the employees of the companies will be available for the Government for use for the people. The initial works by the company opened up development in that area of the state ensuring that other areas of the state are developed freeing up the pressure on the capital. For the Liquefied natural gas project to be in the zone as a big tenant, lots of capital development required that both States even the Federal Government as represented by NEPZA cannot provide. This is an opportunity to let the state understand that with the delay and frustrations of the project, an otherwise good project that promises employment to the communities and all Nigerians is being put on hold. How much have they done to ensure that OKLNG required for effect on the zone does not die. They need government support but since the sponsors not getting enough, they have withdrawn. Development is all about commitment and clear understanding of the project scope and benefits which clearly is lacking when the head does not understand the projects and cannot differentiate between all project components. Given all these, I think the salient question is how much compensation has the new government paid. What have they done as infrastructure at the project area. How many times have they visited or met with communities? Given companies left, how many have they brought back to the zone? It is time to move away from blame apportioning and all types of innuendos and at least do something visible on and for the projects. More that 3 years, what have Amosun done in on this project?
Posted on: Fri, 19 Sep 2014 10:46:34 +0000