Nigeria’s Federal Executive Council (FEC) rose from its meeting on Wednesday evening with the approval of $4.713 billion for development of port projects in Lagos, Ondo and Delta states.
The council meeting presided over by President Muhammadu Buhari at the 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, Prince Ademola Adegoroye, said the projects are to be executed through Public Private Partnership (PPP) arrangement at no cost to the federal government.
According to him, Ilaje port will 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.
He said the Burutu port will cost $1,285,005,818; concessioned for 40 years with the concessionaire and the federal government expected to reap $125billion $9 billion, respectively.
The Snake Island Port will gulp $974,185,203 and concessioned for 45 years with the concessionaire and the federal government receiving $18billion and $5.23billion respectively in accruals within the period.
According to him: “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.
“We’re of the opinion that by the grace of God we’re expanding the maritime space in Nigeria, we’ll be creating more and better employment for our people, we’re facilitating both local and international trades.
“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 a 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.
“For Ondo Port, the total investment capital of $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”.
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 will be concessioned for 20 years while that of Kano will be concessioned for 30 years.
He further said the council also approved the ministry’s change of name from Federal Ministry of Aviation to Ministry of Aviation and Aerospace of Nigeria.
Sirika said Council also approved the draft National Civil Aviation policy which he said is geared towards the strengthening of the 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 neighborhood of N140 million as augmentation for that project.
He said: “The contract has been awarded before they are ongoing, 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.
His words: “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.
Deji Elumoye in Abuja
Follow us on:
The EFCC has arrested three suspects for alleged vote buying during the ongoing Edo governorship…
Evacuations of 30,000 people are underway in central Japan as heavy rains threaten severe flooding,…
An employee of California's state fire protection agency, known as Cal Fire, has been arrested…
In Mexico's western Sinaloa state, at least 53 people have been killed and 51 others…
The Nigeria Police Force (NPF) has announced the arrest of two suspected political thugs during…
President Bola Tinubu on Saturday rejoiced with his better half, Oluremi Tinubu, on the occasion…