Delta govt revalidates approval for $27.29bn Escravos Seaport

By Steve Agbota

The Mercury Maritime Concession Company (MMCC) has received approval and validation from the Delta State Government for the $27.29 billion Escravos Deep Seaport Industrial Complex (ESIC) Project, while it awaits that of the federal government before the end of June deadline given by the project financier.

Upon, the state government validation, the developer has received assurance from the Federal Government that the revalidation on the earlier granted provisional approval would soon be granted.

Recall that the financing company, EDIB International of Hong Kong, had requested security and protection of their investment by guaranteeing the Federal Government’s control over the proliferation of Free Trade Zones (FTZ) in the country.

The investing company had emphasised that if the government’s approval is not received, the funds may be diverted to other African states.

Chairman of MMCC Rear Admiral Andrew Okoja (retd), at a parley briefing in Lagos on Wednesday, said that the Delta state’s pledge of 31,000 hectares of land in Gbaramatu Island/Omadino, Warri South-West Local Government Area of the State for the commencement of the project, which he said is a crucial step towards its realisation.

“With the land, which is the main hub of the project now secured, we can proceed with obtaining the Certificate of Occupancy (C of O) and finalise all necessary formalities. This approval from the state government marks a significant milestone for us,” he said.

Okoja, however, noted the delays in receiving Federal Government validation have raised concerns among investors, highlighting the urgency of timely validation, and warning that without it, the partnership could be at risk.

He said the MMCC is coordinating closely with the Federal Ministry of Industry, Trade, and Investments, which supervises the project, with assurance given to meet the necessary targets, with official confirmation expected imminently.

Okoja emphasised that the ESIC Project is designed as a holistic venture, encompassing a main deep seaport along with a network of inland ports to enhance connectivity across Nigeria.

He said to encourage the seven benefiting states’ participation, MMCC is offering states a 0.2 per cent equity in the project, which is public-private partnership driven, regulated by the Infrastructure Concession Regulatory Commission (ICRC) laws of Nigeria.

Okoja addressed the concerns raised by the Nigerian Port Authority (NPA) about potential monopolies and the need for document regularisation.

“The NPA is just an agency; we are dealing with the project at the government and ministerial levels. Our project is professionally driven and backed by extensive maritime expertise,” Okoja clarified.

Okoja also addressed proposals from Chinese investors regarding protection for their investments.

“They proposed exclusive access to the port they would fund, but we emphasised the importance of competition and efficiency. Any viable project should be able to compete in the market,” he said.

He further disclosed that the project also involves building seven inland dry ports in Bayelsa, Imo, Delta, Edo, Kogi, and Abuja and that all the deliverables would be achieved within five years of commencing construction.

Giving insight into the deliverables of the port project, Ausbet Udebu, director at MMCC, said the project involves one deep seaport, inland ports in seven states, building of an intermodal transport system for cargo evacuation including 45km coastal roads, 150km rail line that would connect existing Warri-Ajaokuta-Itape railway and 600km of marine network.

He said there would be an independent power infrastructure that involves 2,000 megawatts of Independent Power Project (IPP), two 500 megawatts of IPP in two inland ports, and five 250 megawatts of IPP in five inland ports.

According to him, there would be a Free Trade Zone, an industrial park, and a Central Business District.

The post Delta govt revalidates approval for $27.29bn Escravos Seaport appeared first on The Sun Nigeria.

Leave a Reply

Your email address will not be published. Required fields are marked *