FEC APPROVES FOUR MAJOR JVs AND 3.9BILLION DOLLARS WORTH INVESTMENTS
The Federal Executive Council (FEC) today, approved three Full Business Cases in
respect of the Bonny Deep Water Port Project, the Nigerian Correctional Service
(NCS) Shoe and Garment Factories Projects in Aba and the Janguza Tannery
Factory Project in Kano, the Port Harcourt Industrial Park Project and the Port
Harcourt – Maiduguri Narrow Gauge with O&M phase as Concession. The combined
investment value of these Joint Venture (JV) projects is 3.9 billion dollars.
This formed part of the outcome of today’s Federal Executive Council meeting at the
Presidential Villa, Abuja.
The Bonny Deep Water Port has the potential to bridge the maritime infrastructure
gap and boost economic activities along the South-South, South East, North Central
and North East geo-political zones. It would also ease pressure on the Western
Ports (Apapa and Tin Can Island) which at the moment handles about 90% of
container and cargo traffic into the country. The 35 year concession project cost
about $550M.
Similarly, the Port Harcourt Industrial Park Project which cost $291M, is proposed to
be handled by a design, build, finance, operate and transfer (DBFOT) model. It
would promote socio-economic activities across a land area of 84 hectares and
when completed, will consist of 12 standardised workshops with a total construction
area of 100,000-meter square, office blocks of 2,500-meter square, living area of
1,150meter square and other supporting facilities. The project is in partnership with
the China Civil Engineering & Construction Company Limited (CCECC) by direct
investment plan.
FEC also gave approval for the rehabilitation of the reconstruction of Port Harcourt –
Maiduguri Eastern Narrow-Gauge Railway at a cost of about $3billion dollars. This
project will substantially support efforts of Government for economic recovery from
damage caused by insurgency and Covid 19 pandemic. This project will ensure the
entire stretch from Port Harcourt to Maiduguri are linked by rail, with the branch lines
to over six States along the corridor.
The Nigerian Correctional Service (NCS) Shoe and Garment factories in Aba, Abia
state and the Leather Factory Janguza, Kano on the other hand are Joint Venture
(JV)PPP projects to be handled using the Design, Upgrade, Operate and Transfer
procurement model. Each of these projects is coming with skills acquisition units to
upgrade skills in Aba and Kano. The shoe, garment and tannery facilities will in
addition, generate direct employment of 239, 801, and 250 persons respectively.
The project is about $13M.
The next stage for these Projects after FEC approval is for the respective Ministries
to proceed to signing of concession agreements with successful bidders.
