FEC approves $4.7bn for development of Ondo, Snake Island, Burutu Ports
The Burutu port would cost $1,285,005,818; and would be concessioned for 40 years with the concessionaire and the federal government expected to reap $125billion $9 billion, respectively.
FEC approves $4.7bn for development of Ondo, Snake Island, Burutu Ports
The Federal Executive Council (FEC), at its meeting yesterday, approved $4.713 billion for development of port projects in Lagos, Ondo and Delta states.
The council meeting presided by President Muhammadu Buhari at State House, Abuja, gave the go-ahead for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos, and Burutu in Delta State.
Briefing newsmen after the meeting, Minister of State for Transportation, Ademola Adegoroye, said the projects would be executed through Public Private Partnership (PPP) arrangement at no cost to the federal government.
According to him, the Ilaje port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years with the accruals to the concessionaire and the federal government expected to be $50 billion and $2.6billion, respectively.
Adegoroye said the Burutu port would cost $1,285,005,818; and would be concessioned for 40 years with the concessionaire and the federal government expected to reap $125billion $9 billion, respectively.
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The Snake Island Port would gulp $974,185,203 and concessioned for 45 years with the concessionaire and the federal government receiving $18 billion and $5.23 billion, respectively, in accruals within the period.
According to the minister, “Today the Federal Ministry of Transportation presented before the Federal Executive Council, under the chairmanship of Mr. President, and the memos are for, one, the approval for the expansion and development of Snake Island Seaport in Lagos State, through public/private partnership arrangement.
“The second is for the expansion and developments of the Burutu Seaport project. Burutu is in Delta State. Burutu Port project, again, through public/private partnership.
“The last but not the least, and probably the most important, the Ondo Multipurpose Port in Ilaje, Ondo State and I’m pleased to announce to you, gentlemen of the press, that the Federal Executive Council today considered the memos that we presented, looked at them thoroughly, checked if the processes and procedures have been complied with and graciously approved the three memos, at no cost to the government of the Federal Republic of Nigeria.
“Let me start with the Snake Island Port. For Snake Island Port, the total investment by the private investors will be $974,185,203.66 and we expect that the investors will get $18 billion over the period of 45 years concession period. The federal government will have $5.23 billion and the ICRC will get $94.9 million.
“For Burutu, the concession period is 40 years unlike the Snake Island, which is 45 years. The total projected and revenue to the concessionaire, federal government and the ICRC; the concessionaire is expected to have a revenue of $125 billion. The federal government is expected to get revenue of $9 billion, for spending nothing, and the ICRC is expected to rake in a revenue of $627 million as well. The total investment (capital) by the investors is $1,285,005,818.40.”
Speaking further, Adegoroye said for the Ondo Port, the total investment capital was $1,480,465,253, to be fully financed by the private investors. “Concession period is 50 years and the expected revenue; $59 billion will go to the private investors, $2.63 billion will go to the federal government and the ICRC will expectedly rake in a sum of $295 million,” he stated.
FEC also approved the concessioning of the Nnamdi Azikiwe International Airport, Abuja, and the Mallam Aminu Kano International Airport in Kano.
Minister of Aviation, Hadi Sirika, who also briefed newsmen after the meeting, said the Abuja airport would be concessioned for 20 years while that of Kano would be concessioned for 30 years.
Sirika said the council also approved the ministry’s change of name from Federal Ministry of Aviation to Ministry of Aviation and Aerospace of Nigeria.
He said Council also approved the draft National Civil Aviation policy, which he said was geared towards the strengthening of civil aviation.
On his part, Minister of State for Power, Jerry Agba, said FEC approved two memoranda for the ministry, the first one being an approval for the award of contract for the procurement of 25 numbers of 33 KV circuit breakers and 120 numbers of surge arrestors for systems used for Transmission Company of Nigeria (TCN).
The contract value is in the neighbourhood of N140 million as augmentation for that project.
Agba said, “The contract has been awarded before, they are on-going, but we asked for approval for revaluation due to price escalation and additional works. We’re building new sub-stations in one of the places”.
Council also approved the variation due to price escalation on the construction of the Dukanbo Shonga 132 KV double circuit transmission line, he said.
The minister stated, “Shonga is in Kwara State and that line has been down for several years. So with this procurement, we should be able to revamp the station and you know it’s an agro-based area that’s the area which services the Bacita farm.
“The Shonga Farms Limited and the whole of that area has been in darkness for a long time. With this procurement, we hope that in two months, we should have full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5 billion.”
On the administration’s investment and achievements with the Rural Electrification Agency (REA), the Minister described it as a priority agency, which has stamped its footprints in virtually all communities across the country.
“I want to assure you that in all the six geopolitical zones of this country, we have had two projects each in any of the states, there’s no community in any of the geopolitical zones that we don’t have rural solar light intervention. We’ve had solar panels, we’ve had mini-grids and all of that in all the zones and for me, that agency is a star agency; it is a high performing agency. I’m not talking about individuals, I’m talking about the agency itself”, he said.
Minister of Information and Culture, Lai Mohammed, who briefed on behalf of his counterpart in Works and Housing and Police Affairs, disclosed that the contractor handling the Second Niger Bridge will deliver it on May 20.
Mohammed, who stood in for the Minister of Works and Housing, Babatunde Fashola, said that the Second Niger Bridge will be inaugurated soon.
His words: “The Second Niger Bridge is ready for commissioning. The contractor will hand it over on 20th of this month, it will be commissioned soon after.”
He further disclosed that Council also approved the sum of N36.2 billion for the construction of Federal Secretariats in five states.
Giving a breakdown, Mohammed said the sum of N7.564 billion was approved for Abia, N7.418 billion for Ebonyi; N7.707 billion for Kebbi; N6.204 billion for Kogi and N7.3 billion for Taraba states.
The minister also said FEC approved the memorandum presented by the Minister of Police Affairs and the sum of N15 billion was approved for the renovation of Police Barracks located in Ikeja, Lagos.
Meanwhile, Ondo State Governor Mr. Oluwarotimi Akeredolu, yesterday, described as cheering the federal government’s approval of Ondo Deep Sea Port.
Akeredolu, who thanked Buhari and other members of FEC, said the approval was an impressive parting gift from the Buhari administration.
The governor, in a statement signed by his Chief Press Secretary, Richard Olatunde, noted that actualising the port project was very important to his administration.
The statement read, “The Port Ondo is one of the most important projects of this administration. We are determined and committed to actualising this project that will set our state on the path of economic prosperity. Our dream for this port of Ondo is to serve as a conduit for our goods, agricultural produce, and very soon, our bitumen.
“It is the goal of this administration to ensure that the potential of Ondo State is maximised and that all necessary infrastructure required to make this a reality is put in place to achieve this.
“We thank the minister of Transportation, Hon. Mu’azu Jaji Sambo, for his interventions and commitment. Our state is very grateful for this yeoman service. History will be kind to him.
“We equally noted with candour, the role of the Minister of State for Transportation, our own, Prince Ademola Adegoroye. Your impactful struggles and efforts have started yielding enduring fruit of development. Indeed, you have proven to be a true representative of your people. Your doggedness is admirable.”
Akeredolu also appreciated everyone who contributed to the process of getting the approval, saying, “it is just a phase. We expect that this development will renew our vigour and drive our passion to deliver the Port Ondo project.
“Like we say, we are planting a tree, under which shade we may not rest. Nevertheless, it is a worthy cause for the generation yet unborn. We are committed to any effort that targets the good of the next generation.”