The Delta State Government says arrangement will soon be concluded to divest part of its equity in Delta Line Transportation Company to private sector for efficiency, profitability and effective service delivery.
Charles Aniagwu, the Chief Press Secretary to Governor Ifeanyi Okowa, made this known on Tuesday at news conference on the development of the transportation sector in Asaba.
Aniagwu said the state government had decided to adopt a Public Private Partnership arrangement to completely overhaul the transport company after carefully studying its activities over the past two years.
Aniagwu said that available report on the operation of the company showed that the company over the years had not lived up to expectation, adding that it was rather indebted to organisations including government tax agency.
He said that the preferred bidder was “God Is Good Motors”, which was chosen because of its expertise in the motor transport business.
He said that the equity holding was 60 to 40 per cent for the preferred bidder and to government.
Aniagwu said that government was mindful of the need for a transport company that would be effective, efficient and affordable.
According to him, the present administration in Delta State for about two years studied the state transport company before concluding on the need to divest through a PPP arrangement to restructure and make it profitable.
He said: “Government engaged valuers who put the value of the company to about N700 million with liability of over N400 million to workers, Federal Government Tax Agency among others.
“The preferred bidder will need to inject over N160 million to strengthen the company in order to keep it as a going concern.”
Aniagwu said that government would soon be signing a memorandum of understanding with the preferred bidder for effective take-off of the transport company, adding that though that the name “Delta Line” would remain.
He, however, expressed optimism that with the intervention of a private concern, the enterprise could be revived, restructured and repositioned to engage more workers in the state also make profit.
Aniagwu explained: “We have not sold the enterprise, what we did was to divest parts of our equity holding with a view to bringing in a private initiative to efficiently and effectively pilot the affairs of the organisation.
“This is in order to ensure that the company serve the best interest of our people.”