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Isao
Koide is a Japanese investor with 20 years experience in
Nigeria, and several years of investment experience
globally. He is the President of Dersko Marine Group, the
lead promoter and investor in the Deep Water Port Project in
Onna. His Company recently opened its project office in Uyo.
He spoke to Newsmen on sundry issues concerning the deep
water port that he hopes would transform Akwa Ibom state and
bring prosperity to Nigeria
You had a very successful programme this afternoon.
Could you describe today's event and how you feel about it?
I feel most delighted that this happened today. We just
officially opened our project office in Akwa Ibom State
today. All the major contractors for this project attended
the project conference today, and we are happy about it. The
strength of his gathering reflects the strong support of
Nigerians for this particular kind of development effort.
While Nigerians were busy working here, I was simultaneously
working on the other side of the world, particularly in
Asia, Japan and South Korea. We have received the signal to
go ahead after years of slight delay due principally to the
Niger Delta crises. Investors and contractors who were
interested in the project expressed their fears and
concerns. For instance, when I was in Europe discussing the
financing of the project, the reports of the crises on CNN
and other global news media about kidnapping of foreigners
and disruption of legitimate businesses in the Niger Delta,
dampened the morale of prospective investors. There were
reports of kidnappings of staff of Shell, Agip and those
working with oil servicing companies. But in Akwa Ibom, we
are working in such a peaceful surrounding and the people
love guests so much. Some weeks ago, Chevron stopped their
off-shore operations, and such reports of crises do not
encourage investments in the country. Nigeria is the number
seven largest oil producing country according to OPEC.
Are you jittery working here in Nigeria?
No; not at all. I have had experiences, but sometimes, most
media organizations create situations of fear. Every country
has its own unique problem. This affects oil prices
globally, but the efforts by the Akwa Ibom State Government
to promote peace are encouraging investors to come into the
country and the state in particular. And when the Akwa Ibom
State government accepted our proposal, I had no hesitation
coming over here.
What is the equity participation like?
It is based on a public-private partnership (PPP) agreement.
Our project is exactly by direct collaboration. This project
was approved by former President Obasanjo and the Nigerian
National Petroleum Corporation (NNPC), in accordance with
the essential laws of the land. It is my wish that we act as
a bridge between Nigeria and the world, particularly in
reducing the impression of chaos brought about by the Niger
Delta crises. I felt very comfortable with the arrangement,
and I have been in the state for almost four months now. I
have observed with my own eyes that the people are cordial,
warm and desire to have people in their midst. They are
friendly, welcoming and hospitable. The people have
organized themselves together to ensure that this project
works. We will like to execute this particular project soon
enough to bring about the expected benefits to Nigeria and
the global community. In other words, my partner, the Group
Managing Director, Engr. Weizman has done an excellent job
in sustaining the interest, and serving as a bridge between
Nigerian interest and interests of investors
internationally. But due to the perception of insecurity in
the Niger Delta region in particular, most of the investors
did not feel comfortable bringing their money here. I must
thank General Etukudo and the other indigenous people who
worked hard to make sure that there is peace and security
for the interest of this project.
How does the outside world view Nigeria, particularly
over incidences of crises in the Niger Delta region?
On the other side of the world, people make conclusions
based on what they hear reported on the media. But since I
came in here, I have enjoyed peace though I have also heard
reported cases of kidnap and insecurity in the region. In
Akwa Ibom, the people here are generally peaceful and
receptive to progressive thoughts and actions.
What informed the choice of the location of this
project?
First, we had some access; some people from Akwa Ibom
invited us. And we came back here after a pretty long
absence. When my partners here said I should come over, that
they were ready; I jumped on the plane and came out here.
Does being ready mean that the money is available, and
that every other thing required is available?
The host government will have 15% equity participation, and
then 10% goes to the community. This means that a total of
25% equity participation goes to Akwa Ibom State. The
project is Deep Sea Port, but here it says Deep Water Port.
This is what we are going to build in Akwa Ibom.
What is the meeting point between the Deep Water Port
in the state, the Ship Yard at Ikot Abasi and a near similar
project in Mbo local government area of the state?
This is going to serve a s a major hub. It is a unique
project that is going to have all facilities. Our Deep Water
Port is not a conventional port in the real sense of the
word. What we are building is an off-shore project with all
kinds of facilities to cater for major oil and gas
operations. We will have FSPOs, and the likes to assist the
oil industry. These are big tankers that float and our
technical presentation captures all those details. We are
going to build and integrate operations to suit the local
content policy. 70% is going to be done here at the site.
Presently, Korea is where you have the major Ship Yards in
the world. It is our intention to have in the port and
facilities that will aid ship building and maintenance.
Right now, following the increase in steel cost, the major
ship yards in the world have received so many orders that
are pretty difficult to meet on schedule. But if we have our
project take-off, the Nigerian government will be able to
repair its FPSOs here, and even countries in the African
Continent will find it easier to maintain their vessels here
too. Nigeria still needs at least five more FPSOs to cater
for export of its crude. Once we can take-off, it will turn
around the economy of this country, and Africa.
Does that mean that companies will not have to rush
back to Japan, Korea and those countries with well equipped
ship yards for repairs and maintenance?
Yes. Once this project takes-off the Nigerian government
will save so much revenue from leaving the shores of the
country. This will enhance and develop the Nigerian economy.
So, in making Nigeria a major player in the
maintenance sector, let us look at local content. How much
local content in terms of men and materials do you intend to
inject into your operations?
For instance, this is a $ 5Biilon project in the first
phase. About 60-65% is imported from abroad and about 35% is
local. This means that 35% of $ 5billion of the first phase
of the project will circulate within the country.
Nigeria has some oil producing countries as its
neighbours, Sao Tome and Principe, Gabon, Equatorial Guinea
and others...
(Cuts in) This is to our advantage because the major oil
companies doing business there would come to us. All the
vessels conveying oil and gas will come to our port.
Westminster Dredging said that they are going to build
an island from the sea. Is that your idea of the Deep Water
Port?
They only explained what they are capable of doing. But our
project is not an island on the sea. This was just part of
their explanation. The company is excellent in reclaiming
land from water.
When was this project conceived?
Like I said, this project was promoted since 2001. There was
a brief period when the promotion of the project was
suspended due principally to the problems in the region. At
first, people did not understand the real meaning of the
Deep Water Project. Though people talk about the
construction of ports every where, and there is one going on
right now not very far from here, but our project is totally
different. In the whole world, there are only four of this
kind of project, and this particular one in Onna is going to
be the first in the whole of Africa. Once it is implemented,
it becomes a revolution. It will certainly attract attention
worldwide in the oil and gas industry.
How long will it take to complete the first phase of
the project?
Our budget is actually more than $ 5Billion, but you know
that to get started we have to obtain a workable projection
of cost estimates. The first phase will take 3 years. Once
we complete the first phase, we are going automatically into
the second phase and the third phase.
What is the volume of work you intend to handle in the
first phase? Like how many people do you intend employing at
the completion of the first phase?
To get stated we are going to build a housing estate for
those who will work at the project site. The total housing
units will be 30,000. But this comes first after we get into
site. Though we call that phase Port construction, the
estate is captured here. This first phase will include
Multi-modal transport terminal, modular fabrication yard,
tabular steel mill, oil and gas tank, dry and graving docks
and integration of FPSOs topside facilities. These are all
going to be built in addition to the estate. The
construction will begin simultaneously. The tank farm
project for instance, will take 18 months to complete.
When are you commencing the construction of the tank farm,
since it is going to take 18 months?
We will have to sign the PPP agreements first before we know
the exact date to commence construction. Without the PPP
agreement, we have no basis to do the project, even though
we are ready. We are not going to build the tank farm in
Abuja or Lagos. It here we are citing the project,
particularly since Akwa Ibom people have succeeded in
maintaining peace and in encouraging the project. Aside from
its record of being a peaceful state, geographically, it is
ideal. We do have a passion for doing it here in Akwa Ibom.
I believe that this project will shape the economy, and
reduce the problem of youth restiveness.
Why express so much confidence?
There is so much wealth here, and we believe that the local
people here should not be poor or sick. The quantity and
quality of infrastructure should naturally improve with the
volume of wealth in this part of the world. It is painful to
realize that other oil producing countries like Kuwait,
Dubai and others have planted high-grade infrastructures
that have changed their landscapes and the quality of lives
of their people. The United Arab Emirates some years ago was
nothing but desert, today as you can see, they have built
man-made cities, beautiful surroundings and the question is;
why not Nigeria? Nigeria is the world's number seven largest
oil producing country and the quality if her oil is the
best. You must understand that I have been in Nigeria for 20
years, though intermittently. I am a little bit familiar
with what happens here.
What has your experience been like?
Well, sometimes I get to meet good people and at other
times, bad people. It is like that every where, though in
the early days, I did not really understand much, but now,
it is different. Dersko Marine is a combination of Derito
Marine and Koide International. Derito Marine used to be my
shipping agent, very competent shipping agent. So, Engineer
Weizman and some experts shared the idea of promoting and
building this project. I bought the idea of the project and
chose to invest in it. And jointly, we have been promoting
it together, though unfortunately my health conditions did
not permit me sometimes to really do much like I had hoped
to do. Within such periods, he bore the burden alone. And
when everything was ready, the Niger Delta crises disturbed
it a bit.
Generally, how do you feel about it now?
I am happy and pleased that we are here for the project to
take off. I am pleased with the reception of both the
government and the people of Akwa Ibom State. The local
people are so good, and the environment is peaceful.
You have gone round the state and mixed with the local
people, what is your perception about the people of the
state?
Wonderful; they are courteous and friendly people. In a way
I have observed that in most major cities in the world where
people are cold and unfriendly, Akwa Ibom people are warm
and friendly. People in big cities are cold because all
kinds of people mix there. But here in my personal opinion,
the people are not too much exposed to expatriates, possibly
due to the absence of infrastructures. But I believe that
with the completion of our project, this state will become
changed.
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