By Jonathan Nda- Isaiah, Abuja
The federal government yesterday approved the sum of N35billion for the building of a power station by the Nigerian Export Processing Zone Authority (NEPZA) in Akamkpa, Cross River State.
Minister of Industry, Trade and Investment, Niyi Adebayo, disclosed this to State House correspondents after the virtual federal executive council meeting presided over by President Muhammadu Buhari at the presidential villa.
According to him, the contract was awarded to Messers Mutual Commitment Nigeria Limited to build the power station which would power the Calabar Export Processing Zone.
He said that the exact contract sum is N35,411,119,159.47, noting that the contractor will finance 75 per cent of the project, which is in the sum of N26,558,339,337.10, while NEPZA would finance 25 per cent, which translates to N8,852,779,792.37.
The minister said FEC approved a payback period of 10 years of the contractor’s portion, adding that on completion after 11 months, the plant will be operated by the contractor for five years during which they will build local capacity that will take over the running of the plant.
He said, “The whole intention of the upgrade of the two zones is to create zones with world class standards. The Ministry of Industry, Trade and Investment is desirous of making Nigeria a manufacturing hub, especially now that we have signed on to the Africa Continental free Trade Area (AFCTA) Agreement.
“So, by putting 24-hour power in the two processing zones, it will make it more attractive to foreign investors to come and set up manufacturing concerns here in Nigeria.”
On his part, the minister of Mines and Steel Development, Olamilekan Adegbite, said council also approved the categorisation of Aluminum Smelting Company of Nigeria, Ikot Abasi, Akwa Ibom State, as a power producing and strategic company.
With the approval, Adegbite said the production of aluminum will start in Nigeria.
Council also approved the sum of N783,521,275 inclusive of 7.5 per cent VAT for the award of contract for the procurement of two hydrographic survey boats for the National Inland Waterways Authority (NIWA) by the ministry of Transportation in Favour of Messers First Index Project and Services Limited.
Minister of Information and Culture, Lai Mohammed, who briefed on behalf of his colleague, Rotimi Amaechi, said the contract has a six-month completion period. Mohammed, who also briefed on behalf of the minister of Aviation, Hadi Serika, said council approved the contract for the design, supply and installation of PTZ long range tarmac camera surveillance system at the Murtala Mohammed International Airport, Lagos and Nnamdi Azikiwe International Airport, Abuja, and also for a mobile surveillance system with remote controlled licensed for sober installed in the back of a Mercedes Benz Splinter Van 524 in favour of Messers Bruce Lee Pro Project, which is exclusive Nigeria and Africa representatives of the original equipment manufacturers, Messers Datcom Systems Integrated Limited Posers of Slovenia.
The total sum of the contract is N1,278,594,250.
This is to upgrade and provide security and safety for the Nigeria Airport Authority, especially to avoid incidence on the air site and runway.