Federal Govt Targets $1.1bn Revenue From New NIMASA Projects

Federal executive council has approved three public private partnership projects to be executed by the Nigerian Maritime Administration and Safety Agency (NIMASA), according to a statement that was issued by Infrastructure Concession Regulatory Commission (ICRC).

The projects which are under the regulatory guidance of the ICRC, are projected to generate over $1,110,384,387 to the federal government during the concession period.

The projects are Eastern Offshore Waste Reception Facility, Central/Western Offshore Waste Reception Facility and a Floating Dry Dock. They were approved by FEC following the issuance of full business case certificate of compliance by ICRC.

Director-general of ICRC, Michael Ohiani while issuing the certificate said that the move demonstrates the commitment of President Muhammadu Buhari’s administration to the environmental wellbeing of coastal communities as well as offshore fishermen.

The essence of the approvals is to put in place a standard facility for use in Nigeria international waters in compliance with the International Convention for the Prevention of Pollution from Ships (MARPOL) 1973/1978.

The goal of the proposed partnership is to protect the offshore environment, provide a visible deterrent for offshore polluters from a surveillance point of view and reduce the current level of pollution to the benefit of offshore fishermen and coastal communities.

The OWRF projects will essentially help keep the seas and oceans clean. Each Facility when completed, would be adequate to fully meet the needs of ships and other installations regularly making use of the facilities; contribute to the improvement of the marine environment; allow for the ultimate disposal discharge of wastes from ships and other installations in an environmentally friendly way.

More details on the Eastern OWRF show that the Design, Finance, Build, Operate, Maintain and Transfer (DFBOMT) PPP model will be adopted with XPO Marine Services Limited as the concessionaire for an initial period of 10 years.

“The projected total revenue from Eastern OWRF for the entire concession period due to federal government based on revenue sharing ratios is $279,487,228.35.

“The projected total revenue for the entire concession period from the Central and Western zones due to Federal Government based on the revenue sharing ratios is $765,289,988.

The concessionaire for the Central and Western OWRF is African Circle Pollution Waste Management Limited and the concession period is also 10 years.

Also approved by the executive council is a management contract to operate, maintain and transfer the floating dry dock of NIMASA. The FDD is for the repair of cabotage vessels.

The concessionaire, J. Marine Logistics Limited, is to manage the Modular/Floating Dry Dock for a period of 15 years.

Total revenue accruing to NIMASA for the 15 years concession period – $65,607,171(N27,226,975,965). When fully implemented, the project is expected to create over 800 direct and indirect jobs.

Beyond revenue generation, the project is also expected to create jobs, develop capacity and provide maintenance facilities for ships and boats.

The federal executive council also approved a PPP project in Ikeja Lagos, for the Federal Radio Corporation of Nigeria (FRCN) to develop a commercial mixed use complex that will comprise houses, hotels, recreational facilities as well as office complex.

The FRCN PPP project was approved for a concession period of 55 years with expected revenue for the period put at N14.9 billion while the concessionaire is Fish Valley Investment & Property Limited.