By Harry Awurumibe, Editor Abuja Bureau
After many years in the pipeline, the federal government has finally approved a multipurpose seaport in Ilaje, Ondo state just as it also gave approval for the expansion of Snake Island and Burutu seaports in Lagos and Delta states respectively.
This is even as the multibillion dollars projects are to be executed through Public Private Partnership (PPP) with the concession period for Ondo seaport pegged at 50 years and the expected revenue of $59 billion going to the private investors, $2.63 billion to the federal government and the ICRC will expectedly rake in a sum of $295 million.
The Minister of State for Transportation, Ademola Adegoroye made this disclosure while briefing State House Correspondents after the weekly Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari on Wednesday.
According to him: “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.
“We’re of the opinion that by the grace of God we’re expanding the maritime space in Nigeria, we’ll be creating more and better employment for our people, we’re facilitating both local and international trades.
“So that’s the information I have for you regarding the Minister of Transportation and our members. And if I miss anything.
Speaking further an elated Adegoroye said: “On behalf of the government and of people of Ondo State, because that’s where I come from, let me use this opportunity to appreciate Mr. President and the Federal Executive Council of Nigeria, for this wonderful feat that we’ve achieved today.
“I can tell you that Ondo State has been on this project since 2004, during the Olusegun Agagu days, when we tried to establish a seaport around the Olokola Free Trade Zone, we’ve not succeeded all these years, but today, God has made it possible for us, through President Muhammadu Buhari and the Minister of Transportation, Alhaji Muazu Jaji.
“I recall that when I was graciously appointed as minister by Mr. President, the mandates that my state gave to me was basically two; one, go and get the Ado-Ikere-Akure Road started and secondly go to the FEC and ensure that Ondo gets a port approved for us. By the grace of God, we have made history and my ministerial journey has been a most fulfilling one.
“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 a 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.
“For Ondo Port, the total investment capital of $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”.
