The Federal Executive Council (FEC) on Wednesday approved the renewal of the contract between Nigerian Ports Authority (NPA) and LTT Coastal and Marine Services Limited for the management of tugboats, pilot cutters and mooring launches at the Lagos Port Complex Apapa and Tin Can Island Ports Complex.
The Minister of Transportation, Mu’azu Jaji Sambo, who confirmed this at the end of the FEC meeting chaired by President Muhammadu Buhari on Wednesday in Abuja, put the cost of the contract at $29.87 million (about N12.4 billion).
He said the approval followed the presentation of two memos by his ministry to FEC.
”The first memo was the renewal of the management contract for the management of tugs, pilot cutters or mooring launches within the limits of Apapa and Tin Can Island Ports complex.
”This management contract was signed between Nigerian Ports Authority and Messrs LTT Coastal and Marine Services Limited, initially in April 2007, for a period of 15 years, which therefore meant the agreement had expired March last year.
”So the purpose of the memorandum is to seek council’s approval to renew the management contract, as provided in the management agreement and endorsed by the Bureau of Public Procurement in favour of Messrs LTT Coastal and Marine Services Limited, for the sum of $29,871,615.22. This is an equivalent of N12,440,332,875.44 inclusive of 7.5% VAT, at an exchange rate of one US dollar to N416.46
”The second memorandum that was considered by council and approved is in respect of a contract for the design, construction and supply of two 80 tons marine tugboats in order to support the operations of the newly commissioned Lekki Deep Seaport in Lagos,” Sambo said.
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