Ondo, Snake Island, Burutu Ports Get Boost as FEC Approves $4.7bn for Devt
ADEGOROYE
The Federal Executive Council (FEC) on Wednesday approved the sum of $4,713,841,477 (N3.5 trillion) for port development projects in Ondo, Lagos and Delta states.
The projects include Ondo new port, Snake Island and Burutu ports.
This was disclosed by the . Minister of State for Transportation, Prince Ademola Adegoroye, after the FEC meeting presided over by President Muhammadu Buhari.
Adegoroye explained that the sum approved is for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta.
The projects, according to the Minister will be executed through Public-Private Partnership (PPP) arrangements in which the federal government will not be involved in any cost.
He said the project will be financed by private firms and will be operated for 45 and 50 years.
Adegoroye added that the Ondo port would cost the developers the sum of $1,480,465,253 for a 50 years concession period.
The accruals to the private developers and the federal government are $50 billion and $ 2.6 billion, respectively, the Minister said.
He added, ”The Burutu port will cost $1,285,005,818; concessioned for 40 years, with the concessionaire and the Federal Government expected to reap $125 billion and $9 billion, respectively.
”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”.
The projects include Ondo new port, Snake Island and Burutu ports.
This was disclosed by the . Minister of State for Transportation, Prince Ademola Adegoroye, after the FEC meeting presided over by President Muhammadu Buhari.
Adegoroye explained that the sum approved is for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta.
The projects, according to the Minister will be executed through Public-Private Partnership (PPP) arrangements in which the federal government will not be involved in any cost.
He said the project will be financed by private firms and will be operated for 45 and 50 years.
Adegoroye added that the Ondo port would cost the developers the sum of $1,480,465,253 for a 50 years concession period.
The accruals to the private developers and the federal government are $50 billion and $ 2.6 billion, respectively, the Minister said.
He added, ”The Burutu port will cost $1,285,005,818; concessioned for 40 years, with the concessionaire and the Federal Government expected to reap $125 billion and $9 billion, respectively.
”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”.
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