The Nigerian Federal Government, through the Nigerian Ports Authority (NPA), has initiated a significant N11 billion concession agreement with Sandust Tincan Water Project Limited to rehabilitate the Tincan Island water system.
This concession of 16 years has emphasized the modernization of the water treatment facilities that have not worked for over 18 years within the port area, targeted at the purification of water for vessels. It is also meant to garner foreign currency returns through the sale of treated water to visiting vessels.
“There is an obligation that NPA has to supply water to all visiting vessels and all port users and at the moment, NPA has not been able to deliver on that obligation because for more than 18 years the plant has not been active,” Sandust’s CEO, Mrs. Angela Attah, stated.
The Tincan Island Port, one of Nigeria’s busiest ports, has long faced challenges related to water supply. The absence of a functional water system has hampered the port’s operations, affecting both local and international shipping activities.
The concession agreement is expected to change this narrative by ensuring that the water system is restored to optimal functionality. This will not only improve the efficiency of port operations but also enhance the overall experience for vessels docking at the port.
What do you need to know?
The new concession agreement is envisioned to break this narrative by ensuring that the ailing water system is returned to its optimum state. This will enhance operational efficiency at the ports and generally improve the visiting vessel experience.
This project has one major advantage: foreign currency earnings. With the sale of treated water to international vessels, the revenue earnings for the Nigerian government would be very high and could be used in other important infrastructural projects.
The concession is also expected to create job opportunities, both during the construction phase and throughout the concession period. The project will require skilled labour for the installation and maintenance of the water treatment facilities, providing employment opportunities for local residents.
This concession agreement forms part of wider efforts by the Nigerian government to upgrade and develop the ailing port infrastructure in the country. It has identified the pivotal role that ports have played in the nation’s economy and has made deliberate steps to begin addressing the myriad challenges facing the sector.
The whole idea is that, with private capital, the government would be able to capitalize on private investment and expertise in upgrading and maintaining facilities to global standards.
Being a model for other infrastructure concessions in Nigeria, the project will be closely watched as it progresses.
