BUSINESS PARTNERSHIP PROPOSAL
PARTNERSHIP PROPOSAL:
To
South Korean Ambassador to Nigeria .
PRESENT
Making Agriculture our business
CONTACT PAGE
CHIEF PATRICK T. CHIDOLUE
EXECUTIVE CHAIRMAN CHELSEA GROUP
Chief Patrick T. Chidolue
Plot 374E, Ademola Adetokunbo Crescent, Wuse II, Abuja.
F.C.T.
234 (0) 9 782 2080, 234 (0) 705 501 6783 info@chelseahotelabuja.com
www.chelseag.com
A boat sailing against the current, either you keep forging ahead or you keep falling behind. It is our perpetual subject to reform and develops constantly. At Chelsea Group expect support and assistance from leaders and friends at home and
abroad to join in their effort to contribute our quota to the development of agriculture and export sector in Nigeria… THE FUTURE OF NIGERIA WILL BE MORE
GLORIOUS
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TABLE OF CONTENTS
INTRODUCTION PAGE • 4 PREAMBLE • 5
THE CONCEPT • 6
PROJECT BACKGROUND • 7 OVERALL OBJECTIVES • 11 FOCUS • 12
• 13 THE NEED - PARTNERSHIP
FINANCIAL STRUCTURE • 17 THE PROJECT BENEFITS • 21
PROJECT MODEL • 22 THE PROJECT • 27 OUR REQUEST • 33
PROJECT LOCATION • 47 CONCLUSION • 58
FRAME WORK • 60
INTRODUCTION
CHELSEA Group provide Platform for the project.
South Korea Government provide investment / Investment Partners.
❖Introduction
❖Preamble
❖Project Concept
3
INTRODUCTION
CHELSEA GROUP LIMITED is a registered company with Corporate Affairs Commission of Nigeria as a Limited Liability Company. It is registered under the company and allied matter Act, 1990 to be known as CHELSEA GROUP LIMITED with an object clauses of Farming, buying of agricultural produces, processing and sales of agricultural products or processed agricultural products.
The Chelsea Group Farm is the first large “one stop” cash crop farm at Mkpunando village of
Aguleri Otu Community, Anambra East LGA of Anambra State and in Dekina local government
of Kogi State each comprising of 10,000 hectares for farming, processing and other facilities
that will add to the development and success to the farm.
PREAMBLE
Agriculture is the primary source of food,
clothing, and the materials used for fuel and housing for a growing world population. The challenge is to lift millions of people out of poverty and hunger, reduce the impact of agriculture on the environment and global
warming, and sustain water and land resources.
Three out of four poor people
in developing countries live in rural areas, and most depend directly or indirectly on agriculture for their livelihoods. According to the World Development Report
(World Bank, 2008), agriculture is recognized as a vital development tool for achieving the Millennium Development Goals (MDGs), and especially for contributing to food security, raising the incomes of the poor, facilitating
economic transformation and providing environmental services.
Agriculture is the largest sector in most sub-Saharan economies in terms of employment, and it plays an important role in supplying Food and export earnings. Rural poverty rates remain high, and labor
productivity is strikingly low. Can close the gap.
5
SUPPORT CHANNEL MANAGEMENT OUTPUT/SUCCESS
CHELSEA AGRIC South Korea
Government Nigeria Government
Chelsea Group Limited
Host Communities Nigeria Banks
Enterprises
THE CONCEPT
Return on Investment Skill Acquisition
Development Food Security Employment
Revenue
BACKGROUND
BACKGROUND
Developing a top feasible integrated
rice, cassava, soya bean and maize
farm in
Anambra – Kogi.
7
BACKGROUND
As a multifunctional company, CHELSEA GROUP has proven and resolutely remained a broad- based conglomerate, with a Think-Tank-Team of Entrepreneurs’, Industrialists, dogged business icons and Professionals in agriculture; agro and allied products processing; agricultural and industrial researches and development; business development and management; hospitality and tourism management; international trading; business syndication; and strategic partnership arrangement.
They have consistently reckoned and maintained good tract records of operational excellence,
credible business ambience, attractive image; soaring growth trend and high reputational
disposition and public accolades for their innovative initiatives/programmes and
establishments, with far-reaching, socio-economic imparts to the Nigerian economy
.BACKGROUND Cont’d
Agriculture is a branch of the economy in Nigeria, providing employment for about 30% of the population. The sector is being transformed by commercialization at the small, medium and large-scale enterprises levels. The gospel of economic salvation cannot be preached without reference to agricultural development. Agriculture is the major and most crucial path to financial progress and prosperity. It encompasses all side of human activities - be it the art, act and culture.
Agriculture is the mainstay of mankind; thus, wise nations all over the world makes it a priority by developing and exploiting this sector for the maintenance of their abundant population through the earning of revenue for development purposes.
NIGERIA AGRICULTURE
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ROLES OF AGRICULTURE IN NIGERIA
BACKGROUND Cont’d
Provision food security
Contribution to Gross Domestic Product (GDP) Provision of employment
Provision of raw materials for Agro-Allied Industries Generation of Foreign Exchange earning
The important benefits of the Agricultural sector to Nigeria’s economy includes:
The sector analysis in 2017 indicated that the agriculture sector contributed to about 28.68% of Nigeria GDP
OVERALL OBJECTIVES
O BJ ECT IV ES
To bring industrialization to the rural areas.
Focusing on the perfect integration of
knowledge, skills and practice in agriculture.
Modernize farming systems
Process and enhance the value of local production.
Facilitate Regional Trade in order to curb
external dependence of the continent in rice.
Promote rice, cassava, soya and maize development environment.
11
FOCUS With the world’s market value of crude oil
diminishing, various countries are driving their focus to other largely ignored revenue streams.
Nigeria as a nation was greatly hit with this
unfortunate turn of events in the energy industry, and as such, has reacted with a new line of
action:
Agriculture in Nigeria as a source of income is still highly beneficial for the nation and Africa as a continent, because of the abundance of farmable
THE FOCUS – FOOD SECURITY & ROI
FOOD SECURITY AND
RETURN ON INVESTMENT
THE NEED - PARTNERSHIP
CHELSEA GROUP LIMITED SOUTH KOREA GOVERNMENT
South Korea is our real
agriculture investment proposed partner.
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THE PROPOSAL- PARTNERSHIP
Chelsea Group Ltd is strategically poised to large scale integrated farming and processing of a wide range of Nigerian Agro produce. In pursuit of this, the company has acquired over 20,000 Hectares of land in Anambra and Kogi States of Nigeria; with each state/location having about 10,000.00 Hectares, respectively.
In the light of the foregoing, Chelsea Group Ltd hereby propose a strategic and
mutually beneficial partnership with the South Korea Government towards the
development and utilization of these assets (land).
PARTNERSHIP - RESPONSIBILITIES
SOUTH KOREAN
GOVERNMENT CHELSEA GROUP
LIMITED
Gas Turbine
Farming Equipments Processing Plants
Storage Facilities Packaging Equipments
Irrigation Equipments Technical Partners
Jetty & Cargos Builders
RESPONSIBILITIES
Land (20,000 Hectares) Conducive Environment Government approvals South Korea government will provide the following:-
Chelsea Group will provide the following:
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PARTNERSHIP/RESPONSIBILITIES
Cont’dNIGERIA GOVERNMENT
HOST COMMUNITIES
RESPONSIBILITIES
Security/ Safety Promotions
Approvals
Security
Enabling Environment
Manpower
FINANCIAL STRUCTURE
CHELSEA GROUP LTD SOUTH KOREA GOVERNMENT
THE PROJECT
FINANCE STRUCTURE
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FINANCE STRUCTURE
South Korea
Chelsea Group
Nigerian Government
Nigeria Government Banks Commercial Banks
Private companies
FINANCE STRUCTURE Cont’d
CONTRIBUTION
SOUTH KOREA GOVERNMENT
CHELSEA GROUP LIMITED
Provide Equipment finance Provide Technical finance Off takers
Provide finance for Land
Provide finance for community development
Provide finance for government approvals Provide finance for site layout, soil test,
land development and preparation
19
FINANCE STRUCTURE Cont’d
NIGERIA BANKS
GOVERNMENT BANKS
COMMERCIAL BANKS
Finance Support
Financial advisory
Project Financial Management CBN
BOI
AFREXIM & NEXIM
Ministry Of Trade And Investment Finance equity contribution
Finance Support
Equipment/Working Capital Finance
Finance for processing & export commodities
THE BENEFITS
CHELSEA GROUP
THE SOUTH KOREA GOVERNMENTDevelopment of the proposed sites
Acquisition of Integrated Machines for farming and processing
Developmental, Economic and Social Benefits to Nigeria
Market for their Machines and Expertise
Knowledge Expansion and investment opportunities
Returns on investment and South Korea Economic Development
Revenue and Returns on investment and Nigeria Economic Development
21
PROJECT ENGAGEMENT MODEL
PARTICIPATION FACILITATION
EVALUATION/EXPECTED OUTCOME
Impact Development
South Korea Government Nigeria Government
Anambra/ Kogi State Government Chelsea Group
CBN/ Commercial Banks/ AFREXIMBANK/
NEXIM Bank Valuation
Appraisal
Assessment Performance
Progress Outcome Success
Business Men/
Women Chelsea Agric
Cooperative Society (Farmers)
Off-Takers
Ministry of Industry, Trade &
Development/ NIPC/ NEPC Host Communities
Private Companies Professionals/ Mangers
PROJWCT MODEL
DEVELOPMENT OF THE PROPOSED SITES
ANAMBRA STATE
KOGI STATE
This strategic business collaboration between Chelsea Group of Nigeria and the South Korea Government will facilitate the development of the two large scale farms sites in Anambra and Kogi States, with rich economic benefits.
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DEVELOPMENT OF 20,000
HECTARES OF LAND
THE PROJECT
THE FARM
ANAMBRA STATE FARM LAND (10,000)
KOGI STATE
FARM LAND (10,000) CASSAVA
MAIZE SOYBEANS RICE
CASSAVA MAIZE
THE PROJECT
ANAMBRA STATE FARM LAND (10,000)
KOGI STATE
FARM LAND (10,000)
CASSAVA SOYBEANS
MAIZE RICE
CASSAVA MAIZE
THE PROJECT
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CHELSEA GROUP ANAMBRA STATE (10,000 hectares)
DEVELOPMENT OF THE PROPOSED SITES
Cont’dRICE PROCESSING
Rice Farm Cassava Farm Maize Farm
CASSAVA PROCESSING MAIZE PROCESSING
Par-boiled Rice Maize Flour
Cassava chips, Flour, Starch &
Pellets
CHELSEA GROUP
KOGI STATE (10,000 hectares)
DEVELOPMENT OF THE PROPOSED SITES
Cont’dCASSAVA PROCESSING SOYA BEANS PROCESSING MAIZE PROCESSING
Processed Dry Soybeans Maize Flour
Cassava chips, Flour, Starch &
Pellets
Cassava Farm Soybeans Farm Maize Farm
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LOCAL MARKET
DEVELOPMENT OF THE PROPOSED SITES Cont’d
Maize Flour Processed Soybeans Parboiled Rice
Cassava Chips, Flour, Starch & Pellets
All the processed products – Cassava Chips, Flour, Starch, Pellets, Maize flour, Soybeans and Parboiled rice will be stored in Silos and warehouse before export.
INTEGRATED MACHINES FOR FARMING AND PROCESSING
Part of the key benefits of the
partnership is the resultant provision of the comprehensive and integrated plants and machineries to the Nigerian
counterpart,
Chelsea Group for farming and processing.
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OUR REQUEST
1. FARMING EQUIPMENTS
2. PROCESSING PLANTS & MACHINERIES 3. STORAGE FACILITIES
4. PACKAGING EQUIPMENTS 5. IRRIGATION EQUIPMENTS 6. TECHNICAL PARTNERS
7. JETTY & CARGOS BUILDERS
O U R N EED
FARMING EQUIPMENT
FARMING EQUIPMENT
In seeking to attain the objective of Integrated Large Scale commercial farming with
optimum yields and efficiency, Chelsea Group will require from her partner, the supply of comprehensive farming equipment for:
❖ Rice
❖ Cassava
❖ Maize
❖ Soya beans
These also include general farm preparation, maintenance and harvesting equipment.
MECHANIZED FARM SITE LAYOUT PLAN
31
PROCESSING PLANTS & MACHINERIES
PROCESSING PLANTS &
MACHINERIES
As a cardinal focus of this strategic partnership, Chelsea Group is poised to deploying complete sets of comprehensive processing lines, plants and machineries, with state of the art facilities to harness all derivable from each agro products for maximum values.
❖ Large Scale Integrated Rice Mill.
❖ Comprehensive Integrated Cassava Processing Plant.
❖ Maize processing Machine.
❖ Soya Beans Processing Plant.
STORAGE FACILITIES
STORAGE FACILITIES
To ensure steady availability, retention, supply and flow of Raw materials to the plants and processing lines, and
with the due advantage of backward integration, this partnership will seek to secure the provision of adequate storage facilities, like Silos, Warehouses and amenities for
preserving and storing farm produce at healthy
sustainable temperature and state for further processing in line with processing machine capacity. This include
Silos and Warehouses for:
❑ Rice
❑ Cassava
❑ Maize
❑ Soya beans 33
PACKAGING EQUIPMENTS
PACKAGING EQUIPMENT
This include packaging machines, equipment, raw materials and consumables for quality and market attractive packaging of the group’s products from:
❑ Rice
❑ Cassava
❑ Maize
❑ Soya beans
IRRIGATION EQUIPMENTS
IRRIGATION EQUIPMENTS
This project is aimed at establishing and operating a year-round farming system, devoid of seasonal or cyclical supply chain breakdown. Hence the need for sustainable irrigation facilities for effective channelling of water and soil nutrients for optimum yield and cyclical harvest and supply to the plants. These include;
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IRRIGATION EQUIPMENTS Cont’d
Irrigation machines, Equipments and mechanized systems
Pipes
Channels and conduits Sprayers
Pressure control mechanisms
TECHNICAL PARTNERS
TECHNICAL PARTNERS/PERSONNEL
For the effective operation of the plants and machineries, Chelsea Group will require from her South Korean Government Counterpart, the
appointment and deployment of crew of Technical Partners/Personnel to man and pioneer the operation of the machineries, as to ensure effective transition, skills transfer
and operation of the machines for optimum yield.
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Ø Irrigation systems
Ø Rice farming, Processing and Milling
Ø Cassava farming and integrated processing Ø Maize farming and processing
Ø Soya Beans farming and processing Ø Engineers and Technicians
Ø Etc
TECHNICAL PARTNERS Cont’d
JETTY & CARGOS BUILDERS
JETTY & CARGOS BUILDERS
To maximize effective flow of both raw materials and finished goods across ports, ships, ports of discharge and birth, Chelsea group is poised to take advantage of closeness of the project locations to the River Niger and the sea routes to achieve ease of material movements. Hence, the need to source for Jetty and Cargo Builders from her South Korean Government Partners
❖ Jetty Builders
❖ Cargo Builders
39
POWER PLAN
CHELSEA AGRIC LTD GAS TURBINE FOR POWER
Chelsea Agric Ltd and Orient Petroleum Resources Plc have executed a memorandum of understanding for the supply of gas to Chelsea Agric Ltd’s proposed gas turbine, as a standby alternative source of power to the farm. Orient Petroleum Resources Plc which operate within the area of Chelsea Agric Ltd occupation has abundance gas in its domain which is available for supply on demand. This will eliminate waste resulting from transport
and flaring.
The objective is to generate power to power our mechanised agricultural farm located at Mkpunando/Enugu Otu, Anambra State. It is estimated to
produce initial 5 megawatts of electricity at an estimate of 500 Standard Cubic Feet Per Minute (SCFM). It is our aspiration that we shall generate
200 megawatts of electricity at the long term at an estimate of 5000 Standard Cubic Feet Per Minute (SCFM).
POWER PLAN
Cont’d41
OUR REQUEST
ANAMBRA STATE KOGI STATE
1
Planter Harvesters Weeders
Herbicides Insecticides Spray Rice Cultivation Equipments:
2 Expert in Rice Farming 3 Expert in Irrigation 4 Irrigation Equipment 5 Integrated Rice Mill 6 Rice Packaging Machine 7 Silos & Warehouse
8 Power Turbine from 1MW - Expandable 9
Equipments for Planting & Harvesting Cassava:
1
Planter Harvesters Fertilizer
Equipments for Planting & Harvesting Maize:
2
Planter Harvesters Bom Spray
Equipments for Planting & Harvesting Soybeans:
3
PROCESSING EQUIPMENT
B
Integrated Cassava Processing Plan – Produces 1
Cassava Chips Cassava Flour Cassava Starch
OUR REQUEST
Cont’dANAMBRA STATE KOGI STATE
PROCESSING EQUIPMENT
B
1
Maize Flour
Maize feed mill (Chicken Feed) Maize Oil Mills
B
1 Builders of Jetty
2 Builders of Cargos to Transport Containers 3 Technical School Collaboration
4 University Affiliations 5 Road Construction
6 Building Construction Company
Maize/Corn Integrated Processing Plan - Produces
2 Storage Silos
3 Packaging Machines
4 Marketing & Transporting Equipment 43
THE LAND LOCATION – ANANMBRA STATE, NIGERIA
CHELSEA GROUP acquired ten thousand (10,000) hectares of land at Mkpunando village of Aguleri Otu Community, Anambra East LGA, in Anambra state for large scale farming and Processing of agricultural produce for export and local sales. As at June 2018, NEW DAWN CITY TRANSFORMERS CONSULT LTD conducted EIA on the land which ascertains that the land is fertile for rice, maize, cassava, soya beans farming and enough space for processing factory, warehouse structure , administrative blocks for the farm, other necessary infrastructure needed with the CERTIFICATE OF OCCUPANCY from the government of Anambra state .
The project site is at Mkpunando village of Aguleri Otu Community, Anambra East LGA, Anambra State.
THE PROJECT LOCATION
THE LAND LOCATION MAP - ANAMBRA THE PROJECT LOCATION Cont’d
45
THE LAND LOCATION SKETCH - ANAMBRA
THE PROJECT LOCATION Cont’d
PROPOSED
Farm Building Development (U/C)
Access with pipeline
MECHANIZED FARM SITE LAYOUT PLAN - ANAMBRA
47
MECHANIZED FARM SITE LAYOUT PLAN - ANAMBRA
SITE LOCATION ON GOOGLE AERIAL VIEW IMAGERY - ANAMBRA
49
STRUCTURE LAND USE PLAN - ANAMBRA
THE LAND LOCATION – KOGI STATE, NIGERIA
THE PROJECT LOCATION
CHELSEA GROUP acquired ten thousand (10,000) hectares of land at Dekina Local Government Area of Kogi state for large scale farming and Processing of cassava, soyabeans and Maize produces for export and local sales. As at June 2018, NEW DAWN CITY TRANSFORMERS CONSULT LTD Conducted EIA on the land which ascertains that the land is fertile for maize, cassava, soya beans farming and enough space for processing factory, warehouse structure , administrative blocks for the farm, other necessary infrastructure needed with the CERTIFICATE OF OCCUPANCY from the government of Kogi state .
51
KOGI SITE LOCATION LAYOUT PLAN - KOGI
THE LAND LOCATION – KOGI STATE
53
ECONOMIC AND SOCIAL BENEFITS
Job creation
Generation of Foreign Exchange
earning
Food Sustainability
& Self sufficiency Revenue
Generation
Human Training and development skills Increase
Government
BENEFITS
Developmental, Economic and Social Benefits to Nigeria
The socio-economic benefits to the collective stakeholders in Nigeria:
CONCLUSION
CONCLUSION FRAME WORK APPRECIATION
55
CONCLUSION
Nigeria is a nation believed to be one of those that have potentials to be great in the world due to its endowment with natural and human resources. But it cannot unleash its potentialities if the country doesn't gain self-sufficiency, self- reliance and desirable international business partners.
Critical analysis has been carried out on the proposed Chelsea Farm, considering the economic, legal, and environmental; socio- political of the farm, CHELSEA GROUP LIMITED and the SOUTH KOREA Government should urgently start the business of developing the farm, because of the huge expected return on investment.
That the demand for agricultural produce (CASSAVA, RICE, MAIZE, SOY BEANS) is high therefore, CHELSEA GROUP sincerely seek business partnership with the SOUTH KOREAN Government to develop the best integrated farm in Nigeria. The proposed business partnership is a win – win partnership that has high return on investment.
Empirical evidence from our analyses has shown that RICE, CASSAVA, MAIZE and SOY BEANS farming and processing is lucrative and profitable. The project will provide food security, revenue, and reducing inflation and providing employment.
FRAME WORK
Chelsea group with its development partners and consultant will visit South Korean Ambassador here in Nigeria to make emphasis on the need for the partnership.
South Korean Ambassador to facilitate a appointment between Chelsea Group and Korean government in South Korea.
Sign and deliver a strong business partnership with South Korea Government
Seek internal partners with CBN on continue development of farmers cooperatives
Seek international and technical partners with South Korea
Seek promoters and investors
To embark on an export drive that will enable Chelsea Group Agro commodities establish presence in the world food market
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APPRECIATION
We thank you for your patience in reading through this proposal and the opportunity given to us to
present our proposal to you.
We sincerely look forward to a mutually business beneficial partnership with your office.
We are readily available to attend to any enquiries you may have.
Lets work together.
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FOR PARTNERSHIPS AFFILIATIONS, SUPPORT AND CORPORATE ENGAGEMENTS, YOU CAN REACH US AT
ABUJA OFFICE:
Plot 374 E, Adetokunbo Ademola Crescent, Wuse II – Abuja
LAGOS OFFICE:
10 Bayo Kuku, Ikoyi Lagos
