Ports concession to generate $3.7bn revenue

The Infrastructure Concession Regulatory Commission (ICRC) said the concessioning of three ports by the Federal Executive Council (FEC) would generate USD3.7 billion in revenue for Nigeria.

The Director-General, ICRC, Michael Ohiani said this in a statement signed by the commission’s spokesman, Ifeanyi Nwoko.

Recall that the Federal Executive Council (FEC) recently approved the development of deep sea ports in Ondo and Delta states. It also approved the renovation of Burutu port in Delta State and development of Snake Island Terminal in Lagos.

Ohiani said the approvals were granted following the issuance of Full Business Case (FBC) certificates of compliance by ICRC.

According to the ICRC Director-General, the Burutu port in Delta State was approved for a concession period of 40 years and at a total cost of $1.28 billion. He said it would be executed in three phases by the concessionaire, Akewa Colmar Terminals Limited.

“The project is intended to boost the utilisation of the inland waterways. This will be done by ensuring that the evacuation of solid minerals and agricultural produce is undertaken at economic costs on inland waterways to the proposed Burutu deep sea port for export,” he said.

He said the establishment of the port would transform Delta State by boosting commercial and industrial activities, enhance the state’s competitiveness and create employment opportunities.

He said 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 dollars,” he said.

“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,” he said.

He said the total expected revenue is $59.03 billion within a concession period of 50 years.