CEM REPORT, MARITIME | The sum of $4,713,841,477 has been approved for the development of new port projects in Delta, Ondo, and Lagos States by the Federal Executive Council (FEC).
The ports development would be financed through Public-Private Partnership (PPP) arrangements at no cost to the Federal Government.
The Minister of State for Transportation, Prince Ademola Adegoroye, revealed that private firms would finance and operate the port for 40, 45 and 50 years.
The ports to be developed are the Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta.
According to Adegoroye, the Burutu port will cost $1,285,005,818 and be concessioned for 40 years, with the concessionaire and the Federal Government expected to reap $125 billion and $9 billion, respectively.
“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.
[READ ALSO] Lagos Port Receives Largest Vessel in History
“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.”
