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Tag: concession

  • NPA board approves old Warri port concession

    The Board of Directors, Nigerian Ports Authority (NPA) has approved the concession of Terminal B, Warri Old Port, to Ocean and Cargo Services Limited.

    The Board chairman, Emmanuel Adesoye, made the announcement in Lagos, yesterday.

    According to NPA statement, the approval is part of the port reform process initiated by the Federal Government in 2006, through the Bureau of Public Enterprises (BPE).

    In April, Ocean and Cargo Services Limited emerged from seven pre-qualified bidders who responded to a request for proposals (RfPs) issued by the Bureau of Public Enterprises (BPE) on September 27 last year.

     

    The concessionaire, according to the statement, will “operate the terminal which has been abandoned for the past ten years in a concession agreement for a 25-year term.

    “Within this period, the concessionaire would rehabilitate infrastructure at the terminal and deploy modern technological infrastructure with the aim of making the facility competitive”.

  • Concession of 33 grain silos in final stage, says minister

    The Federal government has concluded the processes of the financial bid opening, evaluation and selection of the successful bidders for the concession of 33 grain silos in the country.

    Sen. Heineken Lokpobiri, the Minister of State for Agriculture and Rural Development, told News Agency of Nigeria in Abuja on Wednesday that the concession of the silos at an indicative value of 51.66 million dollars had reached the final stage.

    He said that the Federal Ministry of Agriculture and Rural Development, in collaboration with the Public Private Partnership (PPP) unit of the Federal Ministry of Finance, invited prospective investors or operators to express interest in the operation and management of 33 silo complexes in the country.

    Lokpobiri, however, said that the concession had become imperative because the components, maintenance process, spare parts, security and some other incidental cost of the silos were not presented to the ministry by the previous administration before the silos were handed over.

    “Between the project completion time of the silos and when they were handed over to the government, some equipment vandalism has already taken place.

    “So, the government decided that in order to maximise the use of the silos and save cost, they should be given to the private sector; so adverts were made, some people expressed interest and evaluation is being done.

    “The ministry of agriculture is doing this in collaboration with Infrastructure Concession Regulatory Commission (ICRC),’’ he said.

    Lokpobiri said the details of infrastructure and other necessary inputs had been worked out with the Bureau of Public Procurement (BPP), to promote transparency and the principle of due process.

    He added that the process was at the final stage now.

     

    Lokpobiri, however, said that the government was reserving a few silos in its custody to enable it to provide immediate food relief in times of emergencies, while guaranteeing minimum price scheme so as to allow the farmers to get good remunerative prices for their produce.

     

  • ICRC: Port concession has been successful

    ICRC: Port concession has been successful

    Nigeria’s port concession exercise has been successful and it is “doing very well,” the Acting Director-General, Infrastructure Concession Regulatory Commission (ICRC), Mr. Chidi Izuwah, has said.

    He, however, said the Commission was working with the Nigerian Ports Authority (NPA) to carry out an in-depth study on the best mechanism for the review of the 11-year old port concession.

    “We are doing everything so that Nigerians can be aware and informed that things are being done in a transparent manner. The port concession is doing very well. We might complain about the inadequacies, but let us look at what the ports were about 20 years ago in terms of demurrage.

    “Let us keep telling people that nobody hears about wharf rats any more. Wharf rats have been eliminated completely because of port concession,’’ Izuwah said, in Lagos, during the week.

    He, however, said there could be cases where some concessionaires might not have fully recouped their investments, pointing out that the concession review will not be based on “emotions or man-know-man.”

    According to Izuwah, “it will be based on pure data because anything that needs to be done under the ICRC will be approved by the Federal Executive Council. “So, whatever the outcome of the review process, every Nigerian will know,”he said.

    On the Nigerian Shippers’ Council (NSC’s) proposed truck transit parks, Izuwah said there would be a bankable study to be carried out to establish the optimal location to position the parks, adding that the Federal Government was also aware that port connectivity with the rail was very key.

    “Look at what the Federal Government is doing about the Wharf–Apapa road, the implementation may not be going as fast as it can because of funding. That is why we are working on the side to bring the private sector to help us. So, government is working day and night to create a better Nigeria for everybody,” Izuwah added.

  • ICRC, NPA set to review port concession

    ICRC, NPA set to review port concession

    The Infrastructure Concession Regulatory Commission (ICRC) and Nigerian Ports Authority (NPA,are doing an in-depth study on the best mechanism for the review of the 11 years old port concession.

    The Acting Director-General, ICRC, Chidi Izuwah, made this known in the latest publication of the Nigerian Shippers’ Council (NSC) entitled: “The Shipper’’.

    Izuwah, according to  the News Agency of Nigeria, said  there might be cases where some concessionaires might not have fully recouped their investments, pointing out that the review will not be based on emotions or man-knows-man, but, “It will be based on pure data because anything that needs to be done under the ICRC will be approved by the Federal Executive Council.

    “So whatever the outcome of the review process, every Nigerian will know,’’ he  said, adding that the commission has developed a disclosure framework. “It is a portal where the key information of every concession contract in the country will be disclosed to the public,’’ Izuwah said.

    He made clear that every Nigerian would become an enforcer of concession and government agencies could be indirectly challenged, “if they are not living up to their responsibilities

    “We are doing everything so that Nigerians can be aware and informed that things are being done in a transparent manner. The port concession is doing very well. We might complain about the inadequacies, but let us look at what the ports were about 20 years ago in terms of demurrage.”

    Izuwah said the menace of wharf rats is gone for good. “Let us keep telling people that nobody hears about wharf rats any more. Wharf rats have been eliminated completely, because of port concession,’’ he said.

    On the Shippers’ Council project on Truck Transit Parks, he said there would be a bankable study to be done to establish the optimal location to position the parks, saying the Federal Government is also aware that port connectivity with the rail is very key.

    He said: “Look at what the Federal Government is doing about the Wharf – Apapa Road, the implementation may not be going as fast as it can because of funding, that is why we are working on the side to bring the private sector to help us.

    “So, government is working day and night to create a better Nigeria for everybody,’’ Izuwah said.

  • Abiola airport in Osun gets local concession pact

    The Osun State government has entered into an agreement with All Works of Life Development Organisation (AWOL International Limited) for the completion of Moshood Kashimawo Olawale (M. K. O) Abiola International Airport at Ido-Osun under a build, operate and transfer (BOT) arrangement.

    The signing of the concession agreement on the completion of the airport will hasten the take-off of its operation =in the next eight months.

    Speaking after signing the agreement, the Chairman of AWOL International Limited, Ambassador Nurudeený James Ogunlade said the company would shoulder 100 per cent funding of the project.

    The company chief said the project will begin on November 9, while the first phase will be completed within eight months.

    He said the project would be completed in 2019.

    Ogunlade said the airport would serve local and international passengers as well as cargo services.

    The company chief said this would complement the legacies of the present administration.

    He said: “ýWe are entering into an agreement with the Osun State government to fast-track the completion of the MKO Abiola International Airport, having realised the zeal and effort being put into it by Governor Rauf Aregbesola.

    “We have seen that MKO Abiola International Airport is designed to facilitate a smooth movement of people and goods from one point to the other and serve as a channel or gateway for tourism, hanger/maintenance and cargo hub.ý

    “AWOL International Limited will fund the project 100 per cent through our financial partner, like Turkish Exim Bank and Biray Group of Companies from Turkey.

    “We will Build, Operate and Transfer the first phase of the airport with an ultra-modern commercial complex (terminal building, control tower, among others), standard infrastructure (offices, duty-free shops, among others), construction of maintenance building and power house, workers’ training centre, fire fighter station, security infrastructure and services, apron and taxiway parking, dual carriage road from Oba Adesoji Aderemi to the airport and completion of the fence and surveillance road within the perimeter of the airport and completion of 3.5-kilometre of standard runway.

    “The first phase of the Airport will be completed within eight months and it will take off with five aircraft, three passenger plane (B767-200ER, MD73 Helicopter (1) and B727 (1) cargo by AWOL International Limited.

    “Also, the completion will be done within two years. By then, we must have had in place the establishment of the airport with five star hotels, including amenities, such as a cultural centre, water park, recreation centre and garden, butterfly museum, casinos, among others.

    “To us, Osun is a major state in our country with tourism and historical linkages for the international market. We have seen spectacular economic development with the present and future administration.

    “MKO Abiola International Airport will serve as a point of entry to tourists, opening doors for businesses and other trade-related opportunities among the Southwest states as well as foreign investors.”

    The Managing Director of Biray Construction Nigeria Limited Mr Kartal Arikan said the company firmed up the agreement with the Turkish EximBank on the provision of funding for the project through the Turkish Ambassador to Nigeria.

    He said 85 per cent of materials and services will come from Turkey Construction Company to boost the quality of work during the construction work.

    Arikan said: “During the last visit of Governor Rauf Aregbesola to Turkish Ambassador Hakan Cakil, the ambassador promised to facilitate $350 million for the project’s development from Turkey Investment Group and effort for that is ongoing.

    “Let me assure the good people of Osun and government that Biray Group will support the project, bring to bear the best international professional standard in airport construction and development.”

    Aregbesola noted that despite paucity of fund, his administration had spent over N3 billion on the project.

    The governor said the idea to have a standard airport was conceptualised before he became governor, having realised the need for the state to develop economically, commercially and industrially.

    He said with the concession agreement with AWOL International Limited, Osun would live to its potentialities.

    According to him, Osun State is on the right track of having a standard airport.

  • ‘Concession scanning services at ports,’ govt told

    The SIFAX Group, a multinational corporation with diverse interests in maritime, aviation, haulage and logistics, oil & gas and hospitality, has urged the Federal Government to concession scanning services at the seaports to boost efficiency and generate more revenue.

    At the Nigerian-British Chamber of Commerce’s Advocacy Round-table with the theme: “The Role of Concessions in Fixing the Trans-portation Sector,” Executive Director, SIFAX Haulage & Logistics Limited, Major Henry Ajetun-mobi (rtd), said there was a need for the Federal Government to deepen the involvement of the private sector in the transportation industry to improve the level of efficiency in the sector.

    Using the ports’ concession, as a case study, which has been adjudged a huge success, Ajetunmobi said concession of scanning services remained the most practicable option available to the Federal Government to address the infrastructural challenge in the industry.

    He said: “The current economic reality makes it clear to all that the Federal Government cannot solely address the infrastructural deficit in the country’s transpor-tation sector. This deficit has negatively affected service delivery and ultimately, its contribution to the economy. This is the right time for the govern-ment to concession critical infrastructure in the sector, especially at the seaports.

    “Of utmost importance is the scanning service. Most scanners at the ports are either completely broken down or functioning below installed capacity. This situation has subjected the Nigerian Customs Service and other agencies to 100 per cent physical examination of cargoes, which does not only waste time but also more favourable to the smugglers too. We have waited anxiously for the scanners and it is not forthcoming. I want the government to consider concessioning the scanning service to investors as this will really make the port reform system more efficient,” he said.

  • ‘Why Aviation professionals rejected airports concession’

    Aviation professionals have given reasons why they rejected the concession of the Murtala Muhammed International Airport, Lagos and the Nnamdi Azikiwe International Airport in Abuja by the Federal Government.

    Speaking under the aegis of the Association of Nigerian Aviation Professionals (ANAP) and the Nigeria Union of Pensioners (NUP), Federal Airports Authority of Nigeria (FAAN) Branch at a joint news conference by the Secretary-General of ANAP, Comrade Rasaq Saidu and the General Secretary of NUP, Comrade Emeka Njoku, they said past records of Federal Government on concessioning agreements were riddled with corruption.

    The aviation professional said having checked the records of past ceding of revenue points to the private sector, they discovered that they were not properly managed and were still unfavourable to the Federal Government and the concerned parastatals in the aviation sector.

    ANAP and NUP urged the Federal Government to reconstitute the governing board of directors of aviation parastatals dissolved by the immediate past administration to ensure probity, transparency, blocking reign of impunity and corruption.

    They disputed the minister’s claim of involving aviation stakeholders in arriving at the concession.

    “We were never consulted,” ANAP and NUP maintained.

    They expressed the view that it is possible that the Federal Executive Council has not have been adequately briefed before agreeing to the decision to concession the airports.

    “We have made in-depth findings about other government-owned companies and agencies already said to have either been out-rightly sold, privatised or concessioned and discovered that those firms were not and are still not properly managed, other than to compound the running of those places such as the defunct Power Holding Company of Nigeria (PHCN), steel companies, railways and others,” both associations said in their joint statement.

    The two unions insisted that all areas of land formerly occupied by the Nigeria Airways nationwide must be leased to those who purportedly bought the properties on those lands within the airport vicinity.

    “Examples of such are lands occupied by Arik Air, Skyline Hotel, Air Peace, Obi Village and numerous buildings around MMIA, all in Ikeja, Lagos and all other areas.

    The unions wondered why the National Assembly has not acted on their petition written to them since July 7 to intervene until the Federal Government now took the decision to concession the airports.

    Both unions declared their allegiance to United Labour Congress, the Joe Ajaero faction of the Nigeria Labour Congress.

  • Fed Govt to concession 22 grain silos

    The Federal Government has commenced the process to concession 22 out of it 33 silo complexes across the country to the private sector.

    Government said the concession of the silos would ensure availability of affordable grains across the country.

    The silo complexes were established by the government to provide immediate food relief in times of emergency, provide appropriate mechanism, and guarantee minimum price scheme to make farmers earn remunerative prices for their produce. It was also designed to provide a mechanism for price stabilisation and storage capacity for excess production, and reduce post-harvest losses.

    Speaking at the silos concession financial bid opening yesterday in Abuja, the Acting Director-General, Infrastructure Concession Regulatory Commission (ICRC) Engr. Chidi Izuwah said the concession will sustain the development programmes of the agricultural sector under President Muhammadu Buhari.

    He said: “What we are doing today is transformational for the agric sector in line with the plans of the president to transform the agric sector

    “If we have a system where our rice is harvested by harvesters and taken to silos, we don’t need to spend billions of naira installing de-stoners.”

     

    He explained that the concessioning of the silos is consistent with the holistic value chain intervention of the president in the agric sector.

    In his remarks, the Acting Director, Food and Strategic Resource Department, Federal Ministry of Agriculture and Rural Development, Mr. Shehu Bello explained that the concession would be done in a transparent manner and in partnership with the ICRC in line with the extant regulations.

    He noted that move was also in line with the Public Private Partnership of the Federal Government whereby the private sector is the engine room of economic diversification.

    He said government will continue to play a regulatory role after the concession of the silos in order to ensure that they are properly utilized.

  • Road concession

    Road concession

    •South-East/South-South governors right in asking for clear-cut policy

    At its meeting on July 19, the Federal Executive Council (FEC) took the very important and commendable decision to approve the request by Kaduna State Governor, Mallam Nasir el-Rufai, that two federal roads, namely, Nnamdi Azikiwe and the Ahmadu Bello Expressway in Kaduna be re-designated as state roads. Rather than just repairing the roads with its funds and asking for reimbursement, ownership of the roads was conceded to Kaduna State to endow the state government with “the power, without any inhibition, to work on the roads to make them better for Kaduna indigenes”.

    It was, however, a different kettle of fish altogether when the Lagos State Government sought the authorisation of the Federal Government to take over the federal road linking the Murtala Muhammed International Airport to Oshodi in order to reconstruct and modernise the badly decayed facility. Work on the transformation of the road into a 10-lane expressway equipped with five bridges, two flyovers, two service lanes and three pedestrian bridges could only commence last week after the resolution of an avoidable and untidy public spat between the governor, Mr. Akinwunmi Ambode, and the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola (SAN), on the matter. This was despite the fact that the state government said it had already sourced the requisite funds for the project from its own resources.

    The call by the South-East/South-South Governors Forum at its last meeting in Port Harcourt, Rivers State, on the Federal Government to come up with a clear policy on the concession of federal roads and to fast-track the process of its implementation was, no doubt, informed by the seeming arbitrariness that currently characterises the decision on which states to cede federal roads to for repair and maintenance. Given the appalling state of federal highways in the two regions, the concern and advocacy of the governors is understandable and laudable. But they should follow up their call with a detailed proposal that could help chart the way forward in this regard.

    However, the issue of failed federal highways is a nationwide challenge that transcends the South-East and South-South regions. This is a cause that should be pursued by the Nigerian Governors Forum (NGF) as a matter of urgency. There are certainly many other states that can fund the repair of federal roads within their jurisdictions, as Kaduna and Lagos are doing. The existence of a clearly stipulated concession policy will help make the process for actualising this more efficient, transparent, immune from negative extraneous considerations and thus more productive.

    Some states have expended their own resources on rehabilitating critical federal roads and have been waiting endlessly for reimbursement. While Lagos State, for instance, says it is yet to be refunded over N51 billion expended on federal roads over the years, Taraba State Governor, Mr. Darius Ishaku, recently pleaded with the Federal Government to refund over N30 billion expended on federal roads by his predecessor. These kinds of situations can be avoided with a clear road concession policy in place.

    The Infrastructure Concession Regulatory Commission (ICRC) set up by the late President Umaru MusaYar’ Adua administration as a strategy to confront the severe funding challenges in the sector has been largely comatose. It is time for the requisite authorities to look into the laws setting up the commission with a view to strengthening and making it more effective. If the ICRC had been alive to its responsibilities, for instance, the Public-Private-Partnership concession agreement between the Federal Government and Bi-Courtney consortium as regards the rehabilitation of the Lagos-Ibadan Expressway, which eventually failed, could have been better handled.

    The state of federal roads across the country constitutes a national emergency and the plea of the South-South/South-East Governors Forum must be treated expeditiously. This is particularly so because it has become obvious that the Federal Government lacks the capacity to solely fund the construction, repair and maintenance of federal roads nationwide.

  • Activists oppose concession of Port Harcourt refinery

    A coalition of civil society and anti-corruption groups has kicked against Federal Government’s plan to concession the Port Harcourt refinery to private companies without compliance with the laws.

    The group said the Infrastructure Concession Regulatory Commission Act of 2005 requires that the Federal Government, through newspaper advertisement, should call for open bidding.

    The Federal Government had granted approval to an oil company, Oando, to repair, operate and maintain the Port Harcourt refinery in conjunction with Nigerian Agip Oil, a subsidiary of the Italian oil company, ENI.

    The coalition, led by Chairman of the Centre for Anti-Corruption and Open Leadership, Comrade Tunde Adeniran, told reporters in Lagos yesterday that the process for the concession was not followed.

    He said there was no open bidding.