Private Sector to Invest $3.7bn in Ports Concession
The Infrastructure Concession Regulatory Commission (ICRC), has said the concessioning of three ports by the Federal Executive Council (FEC) would attract an investment 3.7 billion dollars from the private sector.
The Director-General, ICRC, Micheal Ohiani said this in a statement signed by Mr Ifeanyi Nwoko, Acting Head, Media and Publicity, ICRC, in Abuja. Ohiani said FEC approved the renovation of the Burutu Port and the establishment of a Deep Sea Port in Delta state under Public Private Partnership (PPP).
He said others included the development of Ondo Port and the development of the Snake Island Terminal in Lagos. Ohiani said FEC also approved the commencement of the Park and Pay initiative in some parts of the Federal Capital Territory (FCT) and the rehabilitation of Police Quarters in Ikeja, Lagos.
He said FEC also approved the concession of the Nnamdi Azikiwe International Cargo Airport, Abuja; the Malam Aminu Kano International Airport, Kano as well as the Expatriate Employment Levy.
Ohiani said the approvals were given following the issuance of Full Business Case (FBC) Certificates of compliance by ICRC. According to him, the approvals demonstrate the commitment of the Federal Government to infrastructure development in Nigeria.
The director-general said the eight approved concessions were the highest approval given by FEC in a single sitting. Ohiani said that the latest approvals brought the total number of concession projects that have gotten the consent of the FEC in 2023 to 30.
According to the director-general, the Burutu Port in Delta State was approved for a concession period of 40 years and at a total cost of 1.28 billion dollars. He said it would be executed in three phases by the concessionaire, Akewa Colmar Terminals Limited.
“The project is intended to boost the utilisation of the inland waterways.
“This will be done by ensuring that the evacuation of solid minerals and agricultural produce is undertaken at economic costs on inland waterways to the proposed Burutu Deep Sea port for export”, he said
Ohiani said the establishment of the port would transform Delta State by boosting commercial and industrial activities; enhancing the state’s competitiveness; and creating employment opportunities.
“The project is expected to generate 125 billion dollars in 40 years”, he said. He said the Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti is to be executed in two phases.
“The first phase is at the cost of 1.14 billion dollars while the second phase will cost 317 million dollars”, he said.
Ohiani said FEC approved China Railway Eryuan Engineering Group Co., Ltd as the concessionaire.“The port which will have an Industrial City with a Free Trade Zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities”, he said.
He said the total expected revenue is 59.03 billion dollars within a concession period of 50 years. Ohiani said the Snake Island Terminal was a multipurpose port facility located within the Snake Island Integrated Free Zone (SIIFZ) and operating within the limits of Apapa and Tin Can Ports.
He said the project was approved at 974.19 million dollars for a 45-year term, with Messrs Nigerdock and SIIFZ as the concessionaire. Ohiani said the approval would bring about the expansion of port infrastructure, improve revenue to the government through surging cargo volumes and reduce the burden on roads.
“It will also provide quality job opportunities for Nigerians and reduce cargo diversion to neighbouring countries. Total revenue to the government is 5.23 billion dollars”
He said the on-street park and pay services had received approval to be deployed in some parts of the FCT, with multiple operators/concessionaires to handle different zones.
“Zone A (Wuse II and Utako) has NAJEC Limited as the concessionaire. The N475 million concession is for a 10-year period with expected revenue put at N11.875 billion.
“Zone B (Maitama and Garki 1) has Messrs. Automaten Technik Bauman Nig. Ltd (ATB) as the concessionaire. It is a N433.3 million concession for a 10-year term and an expected revenue of N15.05 billion”, he said.
Ohiani said the Expatriate Employment Levy (EEL)project seeks to boost the revenue generation of the country through the imposition of levies on companies that employ expatriates.
“It aims to discourage employers from hiring expatriates for jobs that could easily be done by Nigerians. The project will employ a robust ICT System for the collection of EEL”, he said.
He said the project was approved at 95 million dollars with Messrs Air Wave Ltd as a concessionaire and estimated revenue of 13.4 billion dollars.
Ohiani said the Nnamdi Azikiwe International Cargo Airport Abuja (NAIA) concession would be executed at 86 million dollars, operated for a 20-year concession.
He said the project would be executed by Corporacion America Mota Engil Consortium, at 86.427 million dollars with total expected revenue put at 1.76 billion dollars.
Ohiani said the concession for Kano International Airport was approved for 17.48 million dollars, to be executed by Corporacion America Mota Engil Consortium for a 30-year term and projected revenue of 596 million dollars.
For the Comprehensive Redevelopment of the Police Quarters, Ikeja, Lagos, he said the project seeks to replace the existing dilapidated physical structures at the current site.
“FEC’s approval for this project was for a cost of N7.4 billion, a lease of 50 years, and an expected revenue of N16.7 billion”, he said. #Private Sector to Invest $3.7bn in Ports Concession
