FEC approves concession of Badagry Deep Sea Port, targets $53bn revenue
PRESS RELEASE
August 4, 2022
FEC approves concession of Badagry Deep Sea Port, targets $53bn revenue
In its quest to bridge infrastructure gap through Public Private Partnerships (PPPs) the Federal Executive Council (FEC) has approved the concession of the Badagry Deep Sea Port on a Build Own Operate and Transfer (BOOT) PPP model.
The approval by FEC followed the isuance of the Full Business Case Certificate (FBC) by the Infrastructure Concession Regulatory Commission (ICRC) in April, 2022 to the Federal Ministry of Transportation, through the Nigerian Ports Authority (NPA).
The $2.5 billion Port project which is under the regulatory guidance of the ICRC, is expected to generate over $53 billion within the 45-year concession period.
The PPP arrangement shows that the port concession will have a construction period of five years, after which operations will begin and revenue accruals will commence.
When completed, the ports will comprise: General cargo terminals, Container terminals, RoRo & Grain terminals, Offshore supply basis (OSB), Liquid Bulk jetties as well as Barge and Rail terminal.
The port will be equipped with the capacity to handle 3.9 million Twelve Equivalent Units (TEUs), 24 million metric tons of cargoes and 1.4 million cars annually.
The port will also have a navy berthing facility as well as utilities such as road fly-overs, rail and public roads.
The state-of-the-art multi-purpose facility will offer its customers superior uncongested hinterland connectivity and one of the deepest water in West Africa, thus creating a sustainable competitive advantage for Nigeria going forward.
Beyond increasing government revenues, the port will also facilitate foreign investment, reduce congestion within Lagos ports of Apapa and Tincan Island, improve cargo clearance and delivery process, reduce vessel waiting time and enhance competitiveness of the Nigerian economy by reducing transportation costs and freight rates.
The project is now ready to proceed to commercial close – signing of agreement between the concessionaire and the Federal Government and relevant agencies, with the ICRC witnessing the agreement signing and taking custody of the concession agreement.
After the Commercial close, the project will then proceed to financial close. END.
Signed:
Manji Yarling
Ag. Head, Media and Publicity
For enquiries send a mail to: info@icrc.gov.ng
