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FEC approves $4.7bn Ondo, Snake Island, Burutu ports development
FEC approves $4.7bn Ondo, Snake Island, Burutu ports development
The Federal Executive Council (FEC) has approved port development projects worth $4,713,841,477 in Delta, Ondo and Lagos States.
The approval was given during the weekly FEC meeting presided over by President Muhammadu Buhari on Wednesday at the Presidential Villa, Abuja.
Minister of State for Transportation, Prince Ademola Adegoroye, told State House correspondents that the council gave the authorisation for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State and Burutu in Delta.
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 to 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.
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“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,” he said.
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Also addressing the correspondents on the outcome of the meeting, the Minister of State, Power, Mr Jerry Agba, said that the council approved N140million as argumentation for the procurement of 33 KV circuit breakers and 120 numbers of surge arrestors for systems used 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 N1.5billion as augmentation for the construction of the Dukanbo Shonga 132 KV double circuit transmission line in Kwara as the line had been down for several years.
“So, with this procurement, we should be able to revamp the station and you know it is an agro-based area, that’s the area which services the Bacita farm.
“The Shonga Farms Limited and the whole of that area had been in darkness for a long time.
“With this procurement, we hope that in two months, we should have full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5 billion,” he stated.
Agba also assured that the epileptic power supply witnessed in recent times in different parts of the country would soon be a thing of the past.
