Minister of State for Transportation, Ademola Adegoroye said the Burutu port project would cost $ 1,285,005,818
The Federal Executive Council (FEC), at its meeting yesterday, approved $4.713 billion for development of port projects in Lagos, Ondo and Delta states.
The council meeting presided by President Muhammadu Buhari at State House, Abuja, gave the go-ahead for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos, and Burutu in Delta State.
Briefing journalists after the meeting, Minister of State for Transportation, Ademola Adegoroye, said the projects would be executed through Public Private Partnership (PPP) arrangement at no cost to the federal government.
According to him, the Ilaje port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years with the accruals to the concessionaire and the federal government expected to be $50 billion and $2.6billion, respectively.
Adegoroye said the Burutu port would cost $1,285,005,818; and would be concessioned for 40 years with the concessionaire and the federal government expected to reap $125billion $9 billion, respectively.
The Snake Island Port would gulp $974,185,203 and concessioned for 45 years with the concessionaire and the federal government receiving $18 billion and $5.23 billion, respectively, in accruals within the period.
According to the minister, “Today the Federal Ministry of Transportation presented before the Federal Executive Council, under the chairmanship of Mr. President, and the memos are for, one, the approval for the expansion and development of Snake Island Seaport in Lagos State, through public/private partnership arrangement.
“The second is for the expansion and developments of the Burutu Seaport project. Burutu is in Delta State. Burutu Port project, again, through public/private partnership.
“The last but not the least, and probably the most important, the Ondo Multipurpose Port in Ilaje, Ondo State and I’m pleased to announce to you, gentlemen of the press, that the Federal Executive Council today considered the memos that we presented, looked at them thoroughly, checked if the processes and procedures have been complied with and graciously approved the three memos, at no cost to the government of the Federal Republic of Nigeria.
“Let me start with the Snake Island Port. For Snake Island Port, the total investment by the private investors will be $974,185,203.66 and we expect that the investors will get $18 billion over the period of 45 years concession period. The federal government will have $5.23 billion and the ICRC will get $94.9 million.
“For Burutu, the concession period is 40 years unlike the Snake Island, which is 45 years. The total projected and revenue to the concessionaire, federal government and the ICRC; the concessionaire is expected to have a revenue of $125 billion. The federal government is expected to get revenue of $9 billion, for spending nothing, and the ICRC is expected to rake in a revenue of $627 million as well. The total investment (capital) by the investors is $1,285,005,818.40.”
Speaking further, Adegoroye said for the Ondo Port, the total investment capital was $1,480,465,253, to be fully financed by the private investors. “Concession period is 50 years and the expected revenue; $59 billion will go to the private investors, $2.63 billion will go to the federal government and the ICRC will expectedly rake in a sum of $295 million,” he stated.
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