Posted on 10/16/2005 8:02:17 PM PDT by M_Nair
British tycoon rebuilds hurricane town Robert Winnett and Claire Newell
BRITAINS richest man is to pay for an entire American town devastated by Hurricane Katrina to be rebuilt. Lakshmi Mittal, the steel tycoon worth an estimated £14.8 billion, is expected to spend more than £50m over the next five years rebuilding Long Beach in Mississippi.
He will provide the labour, capital and expertise to restore the town, home to 17,000 people, which was wrecked by the hurricane in August.
Insurers are refusing to pay out for flood-damaged homes while government aid is expected to be spent on restoring New Orleans and other large cities ahead of smaller towns.
Mittal, 55, said this weekend the effects of Katrina were heartbreaking and he had been moved to get involved.
It will take years to rebuild the affected communities, he said. These communities are left with challenges that require innovative, long-term solutions and substantial commitments of both time and resources. Few cities were more devastated than Long Beach.
Mittals donation will propel him into the ranks of Britains most philanthropic citizens. He is also understood to have given large amounts to areas hit by the tsunami and is likely to give money to victims of last weekends earthquake in Pakistan.
About half the homes in Long Beach were destroyed by the hurricane and the town had to be largely abandoned after the sewage system was destroyed. Most residents have been moved to temporary accommodation in Florida or trailers on the towns outskirts, paid for by the federal government.
Last week Mittal moved a team of engineers, logistics specialists and other experts to assess the size and scope of the project. The billionaire will send teams of builders to begin the work later this month.
We will be covering materials and people to do the job, which makes the costs very hard to calculate, said a spokesman for Mittals company. Elsewhere, other companies have given a cheque and left thats something we wont do. We will see this project through. Mr Mittal was very affected by what he saw. He said: We have the people, the materials, lets do it.
The tycoon has no previous links to Long Beach, although his company, Mittal Steel, has a plant in Jackson, Mississippi. His representatives are understood to have toured the coastline in the area looking for a suitable town after Mittal decided to help the hurricane victims. They were impressed by the mayor of Long Beach.
Billy Skellie, the mayor, said rebuilding the infrastructure and public buildings would cost almost £16m. Sources close to Mittal said this would be a fraction of the total cost.
Its going to take three years before we have a half-normal life over here, said Skellie. Our community is devastated, but the people here are very resilient. It was a huge relief when Mittal stepped in.
Residents also expressed relief that Mittal, who bought a £70m mansion in London last year, had chosen the town. Richard Notter, 47, a defence contractor, said: Everything within 1,000ft of the beach has gone. The city is bankrupt, weve lost 60% of our business, 45% of our homes. Its going to be a long-term rebuild.
Mimi McGrath, a local government worker, said: My house has gone, Long Beach is devastated. What Mittal has done is wonderful, a godsend.
The issue of who pays for the aftermath of Hurricane Katrina is becoming increasingly contentious. Insurers are refusing to pay for flood damage and developers expect thousands of homes to be repossessed. Politicians in the affected areas are appealing for more than $100 billion in federal aid.
Mittals donation would put him among the top 10 givers in Britain, based on the Sunday Times giving index. The Weston family was the biggest net donor in 2004, with £68.6m.
Mittal became the wealthiest person in Britain after creating the worlds biggest steel firm last year. With his business ambitions now largely fulfilled, friends say he is eager to achieve a global legacy. The Long Beach donation is expected to be the first in a series of high-profile charity acts and he is tipped to take a seat in the House of Lords next year.
That's more money that I'll EVER see in my whole LIFE!
I can't imagine how one could possibly spend that much on a wedding. I'd rather have the money.
Here are a few facts about him:
He was born in India, and he is a Hindu.
"In March 2005, Forbes Magazine named him the 3rd richest man in the world (he was the 63nd richest in 2004 and the richest non-American, with an estimated wealth of 25 billion dollars (US $)."
"In 2002 he was embroiled in a political scandal dubbed Mittalgate with British Prime Minister Tony Blair when it was felt that a donation Mittal had made to the Labour Party had led to Blair's intervention (a letter to the Romanian prime minister) in a business deal favouring Mittal. On July 13, 2005 it was announced that he had donated £2 million to the Labour Party."
He bought a concentration camp at Omarska - operated by Bosnian Serbs for Muslim and Croat prisoners.
He spent 128 million dollars for a house in London ("breaking the world's record for the most expensive house purchase"). It has 12 bedrooms.
His daughter had a lavish wedding on June 22, 2004, in Paris, France, which cost more than 55 million dollars - complete with a fireworks display at the Eiffel Tower. All 1000 guests were put up at a 5-star hotel in Paris. "'Papa, Buy me the Eiffel,' headlined a report in Outlook, one of India's leading magazines, alluding to the extravagance in Paris." The engagement party, on June 20, 2004, was held at the Palace of Versailles.
Remember that old agage - "nothing succeeds like excess"? He's really taken it to heart.
You are so right. I saw him on hannity. Hank is a great patriot.
Thanks! Five year average is definitely on an uptrend, but downtrending in the last five months. That's the kind of thing speculators buy on. $24 a share. Hmmmm.
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