The Kwara State government says its N70b rice joint venture with Valsolar Consultoria 2006 S.L. was the product of extensive negotiation, due diligence and Corporate Affairs Commission (CAC) approval. Giving the genesis of the agreement, the state government, through a statement by Dr. Muyideen Akorede, Senior Special Assistant on Media and Communication to the state governor, Alhaji Abdulfatah Ahmed, said it received a letter of intent from the Spanish investors in October 2011, seeking to partner with the state government to set up a rice cultivation, processing and packaging project in the state following a recommendation by the Spanish Embassy in Nigeria. Considering that the company is undertaking similar ventures in other parts of Africa under Project Africa Rice and in line with the government's policy of encouraging foreign direct investment, officials were subsequently dispatched to Spain to open discussions with the company.

The statement added that the delegation was also directed to conduct vigorous checks on Valsolar's legal status as well as assess its capacity to invest the needed funds in the project. These checks included original copies of Valsolar's certificate of incorporation, the articles and memorandum of association which were sighted and duly notarised copies obtained for the state government's record. Government also has duly notarised and authorised English translations of these documents which indicate that Valsolar was registered on July 7, 2006 with registration No. B06479802 in Extre Madura Region of Spain. The state government also has a duly authenticated resolution by Valsolar's board authorising the company to invest in Kwara State. All the documents have been authenticated by the Embassy of Spain in Nigeria where they are available for verification.

At the same time, Valsolar conducted a satellite survey of the state's topography to determine where on the banks of river Niger to site the project.. Following this, the company visited the state to conduct due diligence which included the state's Fitch Rating after which it consented to signing the MoU. Furthermore, the proposed Joint Venture Company, Valsolar-Kwara Company Limited, has been approved and reserved by the CAC which could only have been achieved based on the presentation of all relevant documents concerning Valsolar Consultoria 2006 SL.

The statement said that under the terms of the MoU, government's seven million Euro investment which is ten per cent of Valsolar's annual investment has been held in an escrow account as a show of governmemt's commitment to the project and which can be either be withdrawn or reinvested in the project at the end of the four year investment period. Akorede emphasised that the Rice Project will generate 12000 jobs over the value chain, stimulate economic development of the state as well as ensure the development of the agriculture in the state through transfer of technology and training of farmers. He said the scale of the project and the value of Valsolar's investment indicates its confidence in Kwara State's growing reputation as a prime investment destination.