OFFICIAL SIGNING CEREMONY OF M.O.U BETWEEN ONDO STATE GOVERNMENT AND COCASET COMPANY LIMITED FOR FLOATING A SUGAR COMPANY
The Memorandum of understanding for signing ceremony between Ondo State Government and COCASET Company Limited took place on the 15th of August, 2017 at the Governor’s Office, Alagbaka Akure in Ondo State.
Brief presentation on the development of the Memorandum of Understanding (M.O.U) between the 2 stakeholders was conducted by the Secretary to the State government on Public Private Partnership (PPP) Barrister O. Emanuel who stated that the assignment was based on the directives of the state governor (who assigned the committee) to confirm all the activities of COCASET project before evolving M.O.U with the state. Following the findings of the committee, it was confirmed that all the host communities have agreed to release 1,250ha of land at Oma Village in Ikaro. The outgrowers have also made arrangement to engage their members for cane production. He explained that the investment on machinery/equipment was also finalized with the co-financiers based on the M.O.U agreement that 20% equity should be provided by the promoter. Following this progress recorded the state government have introduced COCASET to FCMB to provide the funds (for working capital for the project) against local Bank guaranty from the co-financial Bank. Thereafter the funds will be released for 100% confirmed letter of credit for the machinery including funds for factory management, consultancy and training of operators. This action will be effected immediately the equity contribution is presented to the financiers.
Brief remarks on progress made so far by COCASET was delivered by Chairman COCASET Nig. L.t.d. Mr. Adetoye Segun who explained that an M.O.U with co-financiers Messrs Broad Spectrum L.t.d Abuja has been signed. Based on this development Broad Spectrum has been introduced to ASHOKA Machine Tools India. In addition, COCASET has signed a 2 years factory operation management and personnel training management agreement with the manufacturers. He appreciated the sincerity and keen interest of the state government towards partnering with COCASET on the project. He commended the great effort and long term support of NSDC and recent approval of 200 tonnes of seed cane to the Company for onward multiplication. He called on all stakeholders to fully cooperate for the successful implementation of the project.
Brief on benefits to be derived from the project was delivered by the representative to NSDC and Zonal Coordinator NSDC Zonal Office Ilorin, Mr. Balarabe Ladan. He enumerated the mission and vision of the NSDC and stated that sugar factory is next to textile in employment of labour. He urged the stakeholders to put more effort at ensuring speedy installation of the factory and NSDC will support the project based on the guidelines stipulated in the NSMP. He thanked the state government for their sincere support to the project. He also presented copies of NSDC publications to the executive governor and his cabinet members present.
In his welcome Address the Executive Governor Akeredolu Oluwa Rotimi expressed joy to witness the signing ceremony particularly the cooperation demonstrated of all stakeholders i.e. the host communities, the co-financiers, the state government and COCASET. He called on the stakeholders to put more at ensuring successful commissioning of the project comes November 2019.