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FEC approves N420 billion for phase 4 of Onne Port

By on June 20, 2013

The Federal Executive Council,FEC, on Wednesday approved $2.9 billion, about N420 billion, for the construction of Phase 4 of the Onne Oil and Gas Port in Port Harcourt, Rivers State.

Following a memo presented by the Minister of Transport, Senator Idris Umar, the Council had ratified President’s Anticipatory Approval for the Development of Phase 4B Port facilities at Onne Oil and Gas Free Zone.

Minister of Information, Mr Labaran Maku who briefed State House correspondents after the weekly FEC, presided over by President Goodluck Jonathan, said the project will generate about 20, 000 jobs on completion.

“The concept of the development of the facilities is to decongest the Lagos and Port Harcourt ports while entrenching PPP in the establishment and upgrading of public sector facilities.

“The project is expected to generate 4,000 job opportunities during its execution and about 20,000 direct and indirect job opportunities when it is in full operation.
“The concession and development of Phase 4B port facilities at Onne Oil and Gas Free Zone, Onne Port Complex, in the sum of $2,797,129,243.26 only, exclusive of all taxes, with a completion period of 6 years and a concession period of 25 years to be solely pre-funded by the contractor, Messrs Deep Offshore Services Nigeria Limited, and the cost to be amortized from the service boat and other port charges in all the ports,” he said.

Maku further noted that there was the need to increase the capacity of Nigerian ports, adding that inadequate infrastructure has led to the congestion being experienced in Lagos.

He added that the Ibaca Deep Sea in Cross River and Lagos Deep Sea Ports are also being developed to facilitate easy activities at the nation’s major ports.