The Federal Government yesterday approved of $370,481,720.42 (about N5.9bn) for the construction of Onne Port Complex in Port Harcourt, Rivers State.
The project, when completed, is said to be capable of generating 2,500 job opportunities, directly and indirectly, during executions while over 20,000 job opportunities will be created when the facilities are in operation.
The discussion was taken during the Federal Executive Council (FEC) presided over by Vice President Namadi Sambo, yesterday the FEC also okayed President Goodluck Jonathan’s anticipatory approval for the award of contract for fast tracking the development of the phase 4 port facilities at Onne Port complex for the Nigeria Ports Authority and the Ministry of Transport, in favour of Messrs Intels (Nig) Ltd.
Briefing State House correspondents at the end of the, Information Minister, Mr. Labran Maku who noted that the ratification of the president’s approval was done because of the importance of t,he project, said the $370,481,720.42 cents is payable at the prevailing exchange rate at the time of payment, with 40 months as completion period.
He said, “The funding of this project is coming completely from the company, Messrs Intels (Nig) Ltd.
This company has proved over and over again, particularly in the first three phases of the Onne port, that it is dependable.
The company was able to take risk at a time that most investors in the private sector were not forthcoming in terms of partnering with government to put funds on ground and develop port facility.
“The process of repayment will come from taxes paid from the port over a period of time. This frees government stringent budget conditions particularly in the public sector and enables us to have access to capital from the private sector for the development of this port”.
Transport minister, Suleiman …? assured that privatisation process will be properly monitored to ensure government derives it’s maximum benefits and revenues that will accrue there from.
“For the avoidance of doubt, the scope of work include sand filling and land reclamation, widening of the channel entry, construction of berth 9,10 and11 and the federal ocean terminal with 12 meters draft chadatu and indeed ports standisation projects and enhancement of existing ports facilities”, he added.
The construction of Onne Port complex began in the early 80s as one of the strategies of decongesting Lagos and Port Harcourt Ports. The phase three of the port has been completed, but the facilities at the port are still inadequate to cope with the high demand of the oil and gas industry.
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