FEC approves N420bn for Onne Port devt

[PeoplesDaily]

The Federal Government yesterday ratified President Goodluck Jonathan's approval of $2.9 billion (N420bn) for the development of Phase 4B Port Facilities at Onne Oil and Gas Free Zone, Onne Port Complex in Port Harcourt, Rivers state.

This was part of the outcome of the Federal Executive Council (FEC).

FEC also deliberated the award of contract for the supply of Hitachi Generator special tools to Jebba Hydro Electric Plc and the White Paper on the Presidential Committee on the Restructuring and Rationalization of Government Parastatals, Commissions and Agencies report, otherwise known as the Oronsaye report.

Minister of information, Labaran Maku, in company of Minister of Power, Prof, Chinedu Nebo and Minister of Agriculture, Dr. Akinwunmi Adeshida, explained that the development of the port facilities is aimed at decongesting Lagos and Port Harcourt ports.

According to a working document of the council meeting the minister of transport, Sen. Idris Umar, brought a memo to seek the council's ratification.

"The project that is expected to be completed within six years will not attract any taxes, but will have a concession period of 25 years to be solely pre-funded by the contractor while the cost will be "amortized from the service boat and other port charges in all the ports."

"The concept of the development of the facilities was to decongest the Lagos and Port Harcourt ports while entrenching PPP in the establishment and upgrading of public sector facilities," the working document stated.

"The project is expected to generate 4,000 job opportunities for both professionals during its execution and about 20,000 direct and indirect job opportunities when it is in full operation.

On the Jebba contract, Prof. Nebo said in view of the fact that the availability of the special tools is a major prerequisite for commencement of the site work of the main project, the federal government awarded a contract of N706, 903, 945, of Hitachi Generator special tools to Messrs Marubeni Corporation.

"The project will guarantee steady supply of another 96.4 mw of electricity on completion by September 2014," he said.

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