NPA renews concession agreements with INTELS, Julius Berger, 15 others

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By Shorunke Tunde

The Nigerian Ports Authority (NPA) has concluded its concession review exercise and lease renewal process with seaport and terminal operators.

Five leases will expire next year and the NPA management has given the approval for the renewal of the leases since February 18, and has set up an interagency committee to begin the process.

A total of 21 companies benefitted from the exercise. Intels Nigeria Limited had five subsidiaries in the process, they are: Intels Nigeria Limited; Federal Lighter Terminal, Onne; Intels Nigeria Limited; Federal Ocean Terminal, Onne; Intels Nigeria Limited, Calabar; Intels Nigeria Limited, Warri Terminal “A’; Intels Nigeria Limited, Warri Terminal “ B”.

Others are Julius Berger Services Nigeria Limited, Green view Development Ltd (GDNL), Ports and Cargo Handling Services Limited (PCHS), Apapa Bulk Terminal Limited ‘A’, Apapa Bulk Terminal Limited ‘B’, Associated Maritime Services Ltd, Josephdam Services Ltd,  Five Star Logistics Ltd and Shoreline Logistics Limited.

The last of the batch are: Ecomarine Terminals Ltd, ENL Consortium Ltd ‘C:, ENL Consortium Ltd ‘D’, AP Moller Terminals Ltd, Brawal Oil Services Ltd, Ports and Terminal Operators Ltd and West African Container Terminals.

With Intels five companies, it brings the figures to 21.

Supplemental agreements have been forwarded to the Federal Ministry of Justice, Ministry of Transport, Infrastructure Concession, Regulatory Commission and the Bureau of Public Enterprises.

The aforementioned stakeholders, including NPA and members of the House Committee on Privatisation and Commercialisation, had embarked on an inspection tour of the terminals and engaged operators in meetings following which the grounds for the review of concession agreement were verified and areas for review were established.

Also, it was agreed that a sub-committee comprising stakeholders, including members of the House Committee on Privatisation and Commercialisation be set up.

The committee is to liaise with the Attorney – General of the Federation and Minister of Justice “to fast track the completion of the review, renewal and execution of all negotiated supplemental agreements within 60 days of the resolution.

A letter from the Ibrahim Makama-headed House Committee on Privatisation and Commercialisation that midwifed the process, spelt out the resolution on the review and renewal of seaports concession agreements.

It reads: “The committee met with parties to the concession agreements i.e. Nigeria Ports Authority (NPA), Bureau of Public Enterprises (BPE) and Seaports Terminal Operators (STOAN) representatives on March 17, following the inauguration of the committee set up by the  House to fast track the conclusion of the review and renewal of the concession agreements.”

The document that has a five-point resolution further states: “The concession agreements started with the 7th National Assembly and amicably resolved after extended discussions and mutual consultations.”

Also in line with international best practice, NPA in a letter said in a bid to make the process seamless, it had received “technical assistance on capacity building with regards to concession review by the World Bank, with Maritime Transport and Business Solutions (MBTS) as their consultant.”

Consequently, NPA has sent it’s pathway to concluding the review process to the House Committee on Privatisation and Commercialisation for the adoption of all parties.

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