FEC approves $4.7bn Ondo, Snake Island, Burutu ports development
The Federal Executive Council (FEC) has approved port development projects worth $4,713,841,477 in Delta, Ondo and Lagos States.
The News Agency of Nigeria (NAN) reports that the approval was given during the weekly FEC meeting presided over by President Muhammadu Buhari on Wednesday at the Presidential Villa, Abuja.
Minister of State for Transportation, Prince Ademola Adegoroye, told State House correspondents that the council gave the authorisation for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State and Burutu in Delta.
According to him, the projects which are to be executed through Public-Private Partnership (PPP) arrangements at no cost to the Federal Government will be financed by the private firms and to be operated for 45 and 50 years.
He said the Ondo port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years.
The accruals to the concessionaire and the Federal Government are expected to be $50 billion and $2.6billion, respectively.
”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,” he said.
