Ajaokuta Steel Company Limited has attributed the non-completion of required external infrastructure as the major challenge hindering liquid steel production in the country.

Mr Isah Onobere, Sole Administrator, Ajaokuta Steel Company, made this known when participant of the World Bank and Infrastructure Concession Regulatory Commission (ICRC) sponsored training on Public Private Partnership visited the company in Lokoja.

“ The greatest challenge in commissioning the plant for liquid steel production is the non- completion of the required external infrastructure for transportation of needed raw materials to the plant and subsequent evacuation of products,” he said.

According to him, the first phase of the project for the production of 1.3 million tonnes of liquid steel per annum has been completed.

He added that out of 43 plant units, 41 had been completed and some commissioned and operated.

“The balance of work about two per cent is in the primary plants. This has been the situation since 1994 when the builder of the plants vacated site on account of dearth of funds for the project,” he said

He said that till date the steel plant equipment and facilities remained highly preserved and largely intact.

This, he said was confirmed by two government sponsored technical audit reports by companies of international credibility.

Giving a breakdown of the requirement to complete the plant, he said that the present status of the plant including the Estates stood at 4.66 billion dollars.

He said that 513 million dollars is required to complete and rehabilitate the steel plant.

Onobere added that the cost of external infrastructure and logistics required for transportation of input raw materials and cost internal infrastructure is 600 million dollars

“150 million dollars working capital is required for fully integrated steel plant producing liquid steel,” he said

He said that when the plant starts production, it would tract a lot of investors and would create room for PPP.