FG approves $4.7bn for Ondo, Lagos, Delta ports development

The Federal Government has approved $4.7 billion for the development of ports in Delta, Ondo, and Lagos states.

The approval was given during the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari at the Presidential Villa in Abuja on Wednesday, May 17.

Speaking with State House correspondents after the meeting, the Minister of State for Transportation, Ademola Adegoroye, said the council gave the authorisation for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta State.

According to him, the projects which are to be executed through Public-Private Partnership (PPP) arrangements at no cost to the Federal Government will be financed by private firms and will be operated for 45 and 50 years.

He said the Ondo port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years.

The accruals to the concessionaire and the Federal Government are expected to be $50 billion and $2.6 billion, respectively.

The minister said: “The Burutu port will cost $1,285,005,818; concessioned for 40 years, with the concessionaire and the Federal Government expected to reap $125 billion and $9 billion, respectively.

“The Snake Island Port will gulp $974,185,203 and be concessioned for 45 years with the concessionaire and the Federal Government receiving $18 billion and $5.23 billion, respectively in accruals within the period.”

Also addressing newsmen, the Minister of State, Power, Jerry Agba, said the council approved N140 million as argumentation for the procurement of 33 KV circuit breakers and 120 numbers of surge arrestors for systems use for Transition Company of Nigeria.

He said: “You know, we are bent on providing improved services of electricity to Nigerians.

“TCN is the main body that has to do the transmission. You know generation and distribution are in private hands now so government is only responsible for transmission.

“So, most of the equipment have become obsolete over the years which is why you have break-in transmissions, low power supplies, and outages here and there.

“With these refurbishments and new procurements, we should be able to improve services and see power supply get better by the day.”

Agba further disclosed that the council approved N1.5 billion as argumentation for the construction of the Dukanbo Shonga 132 KV double circuit transmission line in Kwara State as the line had been down for several years.

The Star