Delta State Government has developed some projects which are based on comparative/competitive advantages. These project possess global acceptability because the conditions in Delta State are
comparable and some cases superior to those of other states and foreign countries.
KWALE INDUSTRIAL (GAS) PARK (KIP)
Kwale Industrial Park (KIP) is one of Delta State Government’s (DTSG) strategic initiatives for industrialization. It is planned for small and medium-scale manufacturing industries. KIP is located along the Ughelli-Asaba expressway, 94km from Onitsha and about 92km from Warri port. Onitsha is the commercial nerve centre of South-Eastern Nigeria and home to one of Nigeria’s largest markets. Warri is a major gateway to export markets. KIP is being developed to be the preferred place for manufacturing offering compelling competitive advantage that will have direct positive bottom-line impact for manufacturers. The first phase of the park will occupy about 900 Ha and is conceived to be a private sector led initiative with significant backing of the state government. The location has captive gas supply from producing gas fields within10-20km radius, access to the backbone OB3 gas pipeline which traverses the land for additional gas supply and on-site LNG storage for back-up gas supply. It is ideal for industries like Iron and Steel, Glass, Ceramics, Petrochemical plants, etc which rely heavily on cheap and clean power/energy. The State Government is working to achieve a Free Trade Zone (FTZ)
status for KIP.
MARITIME BUSINESSAND DEVELOPMENT OF PORTS
Delta State is the home to Delta Ports comprising Burutu, Warri, Sapele and Koko (which are located in the state) and Port Harcourt and Calabar ports. There are also numerous Jetties in the state. Over the
years, these ports have been underutilized leading to decay of infrastructural facilities and silting. The ports and jetties offer investment opportunities in ports development, ship building and repairs as well as dredging and maintenance of the sea/river channels for ease of navigation of vessels and shipping. The Agency will welcome enquiries regarding investment interests in any of the above ports.
ANIMAL AND FISH FEED MILLS
The Delta State Government is desirous of establishing Animal and Fish Feed Mills in the state, under Public Private Partnership (PPP) arrangement to catalyse the development of sustainable agriculture and animal rearing in the state.
FERTLIZER BLENDING PLANT
This facility represents an ongoing project work to be located at Ika North East Local Government Area of Delta State. The plant will be established to blend different materials able to produce NKP to be
sold directly to farmers. The Delta State Government desirous of entering into a Partnership
Agreement under Public Private Partnership to provide technical management upon project implementation.
Expected Outcome:
·Annual sales from the plant are forecasted as USD44,564,211, and Net Profit will be USD4,088,533 in the second year.
·The balance sheet would grow from USD9,950,000 in the first year to USD57,304,496 in the tenth-year base on high annual profit and conservative Dividend Policy which is expected to result in the accretion of retained earnings, and huge cash balances.
·The project has an NPV of USD60.78 million, and IRR of 108%.
ANIMAL FODDER FARM AND TOMATO PROCESSING FACILITY
This is an ongoing project that involves the construction of a state of- the- art Integrated Animal Fodder Project and Tomato Paste factory in Ute-Ogbeje, Delta State, Nigeria. The integrated animal fodder project will use 1,500 hectares of agricultural land for plowing, planting, irrigation, harvesting, shredding and compaction of alfalfa and corn.
The Delta State Government is desirous of entering into a Partnership Agreement with prospective investors under a Public Private Partnership arrangement to provide technical management upon
project implementation.
Expected Outcome:
·The Revenue is projected to grow at 34% from EUR16.99m in year 1 to EUR22.77min 2028.
·The projected is expected to generate positive earnings over a 7-year review. The average Net Profit for seven years is EUR10.95m.
·The project is expected to generate adequate operating cash-flows over the forecast period. NPV for the forecast period is positive at EUR36.35m, while IRR is positive at 45%. The plant location on aggregate generally has about 10+% cost of production advantage relative to virtually all plants in Nigeria in view
of the planned low cost of gas etc. This advantage is leveraged fully in the penetration and marketing strategy. To maximize value, the tiles will be sold on a delivered basis as opposed to selling at plant fence as done by other producers. This allows some of the benefits of logistics to be exploited too.
Expected Outcome:
·The average annual turnover is USD40m, and peak profit is about USD20m.
·The project will generate; NPV of USD53m,IRR of 64% and a Pay-Back Period of 3 year.
DELTA GREEN AGRO-ALLIED INDUSTRIAL ZONE (GAAIZ)
An Industrial, Urban Development can be designed and developed in Osubi, Delta State. The project is ideal for Emerging Market and Transition Economies, capable of nurturing the development of entrepreneurial companies during the start-up period and provide direct and indirect business support services tailored to start-up firms.
The proposed agro-industrial zone project will involve provision of utilities, roads and maintenance of green areas, power plant, etc. The project will also introduce the agri-business entrepreneurs to regional
and global value chains through the manufacturing of Ready-to-Eat (RTE) and Consumer Packaged Goods (CPG) to create wealth and reduce poverty. Through this initiative GAAIZ will create a sustainable
ecosystem for the agro and agro- allied value chains in Delta State and create opportunities for smallholder farmers to participate in the production of value-added products for both local consumption and exports. The project has a twin advantage of reinforcing high level of commitment on poverty alleviation and creation of employment, through agriculture and industrial revolution.
The GAAIZ can provide its incubation tenants and clients a full array of manufacturing and development options that include;
·Food Processing Industries [Dairy Products, ketchup manufacturing, soft drinks, rice mills and groundnut oil].
·Centralized Warehouse and Logistic Facilities.
·Hospitality and Recreation Zone [5-star hotel, amusement park, sport center].
·Commercial and Manufacturing Industries [Textiles, aluminum].
·General Engineering and Energy [Automotive assembly, Solid Minerals, Gas Plant].
·Commercial and Residential Development [Staff quarters]