Article summary
- Burutu Port in Delta State was approved for a concession period of 40 years at a total cost of 1.28 billion dollars and would be executed in three phases by the concessionaire, Akewa Colmar Terminals Limited.
- Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti is to be executed in two phases; the first phase is at a cost of 1.14 billion dollars, while the second phase will cost 317 million dollars, with China Railway Eryuan Engineering Group Co., Ltd. as the concessionaire.
- The total expected revenue is 59.03 billion dollars within a concession period of 50 years.
The Nigerian Infrastructure Concession Regulatory Commission (ICRC) stated that the FG’s plan to concession Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta will attract $3.7 billion in investments to Nigeria’s economy from the private sector.
This was disclosed in a statement by the Director-General, ICRC, Michael Ohiani, in Abuja.
The Federal Executive Council this week approved the port concession, which includes the Burutu Port and the establishment of a Deep Sea Port in Delta state under Public Private Partnership (PPP).
Private Sector
The Infrastructure Concession Regulatory Commission (ICRC) said the plan to concession the three ports by the Federal Executive Council (FEC) would attract an investment of 3.7 billion dollars from the private sector.
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), including the development of Ondo Port and the development of the Snake Island Terminal in Lagos.
Other approvals
He added that the 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, and the concession of the Nnamdi Azikiwe International Cargo Airport, Abuja; the Malam Aminu Kano International Airport, Kano; as well as the Expatriate Employment Levy.
Benefits
He noted that the approvals were given following the issuance of Full Business Case (FBC) Certificates of Compliance by the ICRC, which he says demonstrates the commitment of the Federal Government to infrastructure development in Nigeria, the statement added:
- “The eight approved concessions were the highest approval given by FEC in a single sitting. The latest approvals brought the total number of concession projects that have gotten the consent of the FEC in 2023 to 30. 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 and 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.
Commercial transformation
The ICRC chief also noted that 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 report said:
- “The project is expected to generate 125 billion dollars in 40 years. The Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti is to be executed in two phases. The first phase will cost 1.14 billion dollars, while the second phase will cost 317 million dollars.
- “FEC approved China Railway Eryuan Engineering Group Co., Ltd. as the concessionaire. The port, which will have an industrial city status with a Free Trade Zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities”, he said.
The total expected revenue is 59.03 billion dollars within a concession period of 50 years, as 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.
The project was approved at 974.19 million dollars for a 45-year term, with Messrs Nigerdock and SIIFZ as the concessionaires, and 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.”
What you should know
Nigeria’s Federal Executive Council (FEC) approved the sum of $4,713,841,477 for the development of new port projects in Delta, Ondo, and Lagos States.
This was disclosed by the Minister of State for Transportation, Prince Ademola Adegoroye, after the FEC meeting presided over by President Muhammadu Buhari on Wednesday at the Presidential Villa, Abuja.
The ports to be developed are the Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta.
The Minister stated that the projects, which are to be executed through Public-Private Partnership (PPP) arrangements at no cost to the Federal Government, will be financed by private firms and operated for 45 and 50 years.
- “The Burutu port will cost $1,285,005,818 and be concessioned for 40 years, with the concessionaire and the Federal Government expected to reap $125 billion and $9 billion, respectively.
- “The Snake Island Port will gulp $974,185,203 and be concessioned for 45 years, with the concessionaire and the Federal Government receiving $18 billion and $5.23 billion, respectively, in accruals within the period.”
