Fed Govt targets $184.568bn revenue from two ports concessioning
The Federal Government has concessioned two ports with the aim of generating $184.568 billion revenue from them in 50 years.
According to the Infrastructure Concession Regulatory Commission (ICRC) in a statement, “the approvals were given following the issuance of Full Business Case (FBC) Certificates for the projects by Mr Michael Ohiani, Director General, Infrastructure Concession Regulatory Commission (ICRC)”.
The ports are the Burutu and Ondo ports. The Burutu Port in Delta state was approved for a concession period of 40 years and at a total cost of $1.28 billion.
It will be executed in three phases marked as: rehabilitation of the existing Burutu Port; construction of a bulk deep seaport at Agge, 32 kilometres downstream of the existing port and the construction of a deep-sea container terminal at Agge.
The concessionaire engaged for this project is Akewa Colmar Terminals Limited. “The project is intended to boost the utilisation of the inland waterways by ensuring that the evacuation of solid minerals and agricultural produce is undertaken at economic costs on inland waterways to the proposed Burutu Deep Seaport for export” the ICRC said.
The ICRC said the establishment of the port will boost commercial and industrial activities in Delta State; enhance the state’s competitiveness; and create employment opportunities.
The project is expected to generate $125,538,181,000 ($125 billion) in 40 years.
The other port is the Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti. It will be executed in two phases. The first phase is at the cost of $1.14 billion while the second phase will cost $317 million.
The appointed concessionaire is China Railway Eryuan Engineering Group Co., Ltd (CREEC). “The Port will have an Industrial City with a Free Trade Zone status; it will boost commercial and industrial activities; enhance the state’s competitiveness, and create employment opportunities” the ICRC said.
The Ondo Deep Sea Port will serve as a multi-purpose deep seaport that will facilitate the export of agricultural produce and manufactured products from the hinterland (the bulk of the port’s captive cargo); and also create a gateway for imports.
Total expected revenue is $59.03 billion within a concession period of 50 years.
