May 19, 2023
PPP: FEC approves $3,7bn ports, Abuja & Lagos airport concession – ICRC
… okays Park and Pay in FCT, Development of Police quarters Ikeja
…Imposes levy on companies employing expatriates
The Federal Executive Council (FEC) on Wednesday, approved the renovation of the Burutu Port and establishment of a Deepsea Port in Delta state; development of Ondo Port and development of the Snake Island Terminal in Lagos all under a Public Private Partnerships.
FEC also approved the commencement of Park and Pay initiative in some parts of the Federal Capital Territory (FCT); rehabilitation of Police Quarters in Ikeja, Lagos; concession of the Nnamdi Azikiwe International Cargo Airport, Abuja; the Mallam Aminu Kano International Airport, Kano as well as the Expatriate Employment Levy
The approvals were given following the issuance of Full Business Case (FBC) Certificates of compliance.by Mr Michael Ohiani, Director General, Infrastructure Concession Regulatory Commission (ICRC).
According to Ohiani, the approvals demonstrate the commitment of the Federal Government to infrastructure development in Nigeria, adding that the eight approved concessions was the highest approval given by FEC in a single sitting.
He said that the latest approvals bring to 30 the number of concession projects that have gotten the consent of the Federal Executive Council in 2023 alone.
According to the FBC issued by Ohiani, the Burutu Port in Delta state which was approved for a concession period of 40 years and at a total cost of $1.28 billion will be executed in three phases by the concessionaire, Akewa Colmar Terminals Limited.
Phase one is the rehabilitation of the existing Burutu Port, phase two is the construction of a bulk deep seaport at Agge, 32 kilometres downstream of the existing port, while phase three will be the construction of a deep-sea container terminal at Agge.
The Burutu Port Project is a combination of rehabilitation of the existing port at Burutu and the development of a deep seaport further downstream from the existing port.
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 establishment of the port will transform Delta state by boosting commercial and industrial activities; 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 Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti is to be executed in two phases. The first phase is at the cost of $1.14 billion while the second phase will cost $317 million.
FEC approved China Railway Eryuan Engineering Group Co., Ltd (CREEC) as the concessionaire
The Port which will have an Industrial City with a Free Trade Zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities.
It is planned to be developed as a greenfield project that aims to serve as a multi-purpose deep seaport to 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.
Snake Island Terminal
The Snake Island Terminal is 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 a cost of $974.19 million for a 45-year term, with Messrs Nigerdock and Snake Island Integrated Free Zone (SIIFZ) as the concessionaire.
It was declared as a Port Development and Free Trade Zone by the Presidency in 2005. The facility was further declared as a Customs Wharf under the Customs and Excise Management Act as an international point of entry for ships engaged in maritime commercial trade in 2019.
The proposed Snake Island Terminal is envisioned to be developed as a green port, comprising of 3 terminals with 2.5km of quay, 6 ship berths, 9 barge berths, 6.0 to 16.0 meters of draft and an overall area of 85 hectares.
The approval will bring about expansion port infrastructure improve revenue to the government through surging cargo volumes, reduce burden on roads, provides quality job opportunities for Nigerians and reduce cargo diversion to neighbouring countries.
A total revenue to the government is $5.23 billion.
Park and Pay in the FCT
The on-street park and pay services has received approval to be deployed in some parts of the Federal Capital Territory (FCT), with multiple operators/concessionaires to handle different zones.
Zone A (Wuse II and Utako) has NAJEC Limited as the concessionaire: The N475 million concession is for a 10-year period with expected revenue put at N11.875 billion.
Zone B (Maitama and Garki 1) has Messrs. Automaten Technik Bauman Nig. Ltd (ATB) as the concessionaire. It is a N433.3million concession for a 10-year term and an expected revenue of N15.05 billion.
Expatriates Employment Levy
The Expatriate Employment Levy (EEL) project seeks to boost the revenue generation of the Country through imposition of levy on companies that employ expatriates.
It aims to discourage employers from hiring expatriates for jobs that could easily be done by Nigerians. The project will employ a robust ICT System for the collection of Expatriate Employment Levy.
The project is approved at a cost of $95,024,000, with Messrs Air Wave Ltd as concessionaire and an estimated revenue of $13,391,529,119 ($13.4 billion).
Abuja/ Kano Airports
For the concession of Cargo and Passenger Terminal for the Nnamdi Azikiwe International Cargo Airport Abuja (NAIA) and Mallam Aminu Kano International Airport Kano, Passenger and Cargo Terminal, FEC approved for the concessionaire to Rehabilitate/Build, Operate and Transfer the terminal project.
The NAIA shall be executed at a cost of $86 million, operated for a 20-year concession, during which time the concessionaire will charge facility users appropriate tolls and fees to recover its total investment on the project.
The project will be executed by Corporacion America Mota Engil Consortium, at a cost of $86.427 million with total expected revenue put at $1,768,164,000.
For the Kano International Airport, the concession was approved at a cost of $17.48 million, to be executed by Corporacion America Mota Engil Consortium for a 30-year term and a projected revenue of $596 million.
Police Quarters Ikeja
For the Comprehensive Redevelopment of the Police Quarters, Ikeja, Lagos, the project seeks to replace the existing dilapidated physical structures at the current site.
It will have ten blocks of flats each, comprising eight luxury 3-bedroom flats, totaling Eighty units of luxury 3-bedroom flats; 130 Units of 4-bedroom terraced houses with one room boy’s quarters attached to each; A clubhouse/hall, children’s playground and recreational houses.
The FEC approval for this project is for a cost of N7.4 billion, a lease of 50 years and an expected revenue of N16.7 billion.
With the approvals, the projects will proceed to commercial close and then commence. End.
Ag. Head, Media and Publicity
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