Plans are underway by the Edo State government to partner Wuling Motors China in setting up a minivan assembly plant in the state.
This was made known during a visit by the Chief Executive Officer, Global China Consultant Limited, Mr. Victor Enahoro, to the Commissioner, Edo State Ministry of Business, Trade and Cooperatives, Hon. Patrick Irria Uanseru, in his office in Benin City.
The commissioner, while stating Edo State government’s readiness to buy into the proposal, however, requested for a meeting where the foreign directors of the Global China Consultants Limited would be present to create room for a more detailed engagement.
“I have looked through the proposal and I believe it is a good one, because the Governor Obaseki-led administration more than ever before is determined to better the welfare of Edo indigenes through wealth creation. Establishing an assembly plant will have a spiral effect because it will create jobs, increase government revenue for the state as well and so on.
“In Edo State, Governor Obaseki has put a lot in place to attract investors into the state; the state is secure, we have the manpower, there is ease of doing business, and so on.
“But I wanted the representatives from Wuling Motors China and foreign partners of Global China Consultants to be physically present to enable us to deliberate extensively on it.”
Earlier, Mr. Victor Enahoro, while giving a rundown of the proposal, said, “We have an agreement with the manufacturers in China. We started a pilot programme in Kazakhstan. We have been doing business for 5 years now. They decided they want to move into Nigeria.
“They are not just interested in sales of vehicles, but in setting up an assembly plant. In Kazakhstan and Brazil, they were asked to buy 200 vehicles before they set up an assembly plant.
“But I feel that wouldn’t work here in Nigeria. The agreement with Lagos State government was going on well when I thought, if you’re not just interested in sales, why don’t we do it in Edo.
“The taxes in Lagos will wipe them out. Secondly, why not do it in a state that is the centre of the country where you can distribute the finished product thereby reducing your logistics.
“We agreed that instead of 1,000 cars, why not 200, and also, we told them that if the price of the vehicle is too high, the purpose will be defeated by the time it gets to the end user.
“So, we felt doing it with the private company will be more expensive, so we then thought of doing it with the government through Public Private Partnership (PPP) where the government will not be spending so much.”
According to the proposal, production cost is put at $12,000, while shipping is $4,000.
Global China Consultants Limited is a PPP project with the Edo State government to create an internally generated revenue system that includes the provision of commercial mini vans to Edo State indigenes through an economically viable transport system in various parts of the state.
The goal is to establish a minivan assembly plant of Wuling GE Engine of eight seaters, seven seater passengers’ capacity in a designated part (either an industrial park or a free trade zone area of the state.
The project is in two phases: First is the procurement of 200 minivans (50 quarterly) over one year period. While phase two will be establishment of a minivan plant in a designated Park or a Free Trade Zone.
Management staff of the ministry including the the Permanent Secretary, Mrs. Bosede Igbiniobaro, were present at the meeting, while Mr. Eubadus Enahoro, Senior Special Assistant on Media to Edo State government accompanied the representative of Global China Consultants Limited, Mr. Victor Enahoro on the visit.
