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The Enugu State government clarified that it is not investing N100 billion into the partnership with a private firm to revive United Palm Products Ltd (UPPL).
The state government explained that it won’t release any money to Pragmatic Palms Ltd, the company partnering with them. Instead, Pragmatic Palms Ltd, acting as a special purpose vehicle (SPV), will fund the revitalization of UPPL.
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According to a statement from the senior special adviser to the governor on external relations, Mr. Uche Anichukwu, Pragmatic Palm Ltd will finance 60 percent of the project, while the Enugu State government will provide the plantations, valued at 40 percent equity.
UPPL, an initiative of the late premier of the defunct Eastern Region, Dr. Michael Okpara, has been inactive for many years.
The state government aims to convert dormant assets into productive ones and boost the state’s economy. This led to the N100 billion deal between the state government and Pragmatic Palms Ltd, a subsidiary of Diamond Stripes Ltd, after months of negotiation.
Pragmatic Palms Ltd provided a guarantor, Diamond Stripes Ltd, a company with investments worth over $20 billion in various sectors, including power, renewable energy, ports, and agriculture. Diamond Stripes Ltd has a track record of successful projects, including the acquisition of power plants and establishment of solar projects.
The Enugu State government’s interest in the deal is secured through corporate and bank guarantors, performance targets, and representation on the company’s board.
The managing director of Pragmatic Palms Ltd, George Nwangwu, is also the MD/CEO of Diamond Stripes and a professor of project financing law. He has led teams in over 100 successful privatization or public-private partnership transactions across Africa.
The partnership with Pragmatic Palms Ltd signals a new beginning for UPPL and promises benefits for the people of Enugu State.
