The management of the Nigerian Ports Authority (NPA) had cleared the air over the alarm that was raised recently by Mercury Maritime Concession Company over the proposed Escravos Deep Seaport in Delta state.
In a response which was sighted by our correspondent, the NPA acknowledged that the private company actually indicated interests in the Escravos port project.
It however noted that certain aspects of the proposal were incongruous with concessioning and promotion of competition and fairness.
According to the NPA, “Mercury Maritime Concession Company Ltd (MMCC) submitted a proposal and wants Nigerian Ports Authority (NPA) to approve its request as the only deep seaport-free zone in the eastern zone of the country for decades to come”.
The NPA, explained that it found the request of monopoly difficult to accept, because some other interested firms had earlier expressed interests in developing deep seaports in different parts of the southern part of Nigeria.
The statement added that the NPA had “received many proposals for developing deep seaports, including Ibom, Burutu, Bakassi, Bonny, and Port of Benin, which are currently at different stages of review”.
Shipping Position Daily recalls that a retired Rear Admiral, Andrew Okoja, recently warned that Nigeria stands to lose $27.29 billion in foreign investment for the Escravos Seaport Industrial Complex (ESIC) project in Delta State.
Okoja, who is also the chairman of the Mercury Maritime Concession Company (MMCC) had stated that the country was on the verge of missing this significant funding due to prolonged delays by the federal and Delta State governments in granting final approval for the project’s commencement.
“The delay in providing the necessary approvals by both the federal and Delta State governments may result in Nigeria missing out on creating much-needed job opportunities and boosting the nation’s economy,” Okoja said.
Okoja emphasised that the investors are prepared to commit funds for the project’s start, even as he noted that the ESIC project promises to significantly open up Delta State and seven other states, including the FCT, Abuja, to international investment in trade, commerce, and industry.
“ESIC will transform the economy of Delta State and other beneficiary states from a predominantly rural economy to one driven by metropolitan development of international standards.
“This project is modelled after the Lekki Deep Seaport/Free Trade Zone (FTZ) and aims to address the perennial port congestion problems in Nigeria,” he added.
According to him, it involves a 50-year renewable concession lease to Build, Own, Operate, and Transfer (BOOT) the ESIC deep seaport and Free Trade Zone project.
He noted that EDIB International of Hong Kong had expressed its willingness to invest $27.29 billion in developing the ESIC project earlier in the year.
But, putting a hole in the company’s claims, the NPA said it carefully outlined the requirements for the port project.
Giving an insight, the NPA said: “the initial phase involves acquiring land. The availability and suitability of the site are essential for the successful development of the port. This process is yet to be accomplished. Although the classic position is for the Authority to acquire the land and grant a concession on it to the private party, recent concessions granted by the government allowed private parties to acquire the land, hold it for an agreed term, and, after recovering the cost, transfer it to the Authority. Examples are the Lekki and Badagry deep seaports.
“To undertake this project, the site for the port must be identified, and environmental impact assessments and scientific studies must be conducted to confirm suitability”.
According to the agency, Mercury Maritime Concession Company are not close to sealing the deal at all. “Additionally, we must adhere to the PPP process as per the applicable law, which entails submitting the OBC and FBC, obtaining a Certificate of Compliance from the Infrastructure Concession Regulatory Commission (ICRC), and seeking final approval from the FEC. Therefore, we highlighted the need to submit a business and investment proposal with a financial model that demonstrates the project’s recovery period and forms the basis for adopting the PPP framework.
The agency also added that the seaport project is just a part of a larger industrial park that the NPA envisages. “It is crucial to emphasize that the port is just one aspect of the overall development of the Industrial Park. This development encompasses petrochemicals and various manufacturing facilities. The required approvals for these aspects are not within the Nigerian Ports Authority’s jurisdiction. They would follow the process under the ICRC Act”
The NPA concluded that, rather spread a false narrative in the public space, “the proposal hasn’t provided the Authority with the necessary information to advise further.”
