Maritime
FG Tasks Terminal Operators On Maintenance
Federal Government has said it would hold port terminal operators responsible for the maintenance of facilities across the ports.
The government stated this during the signing of a new concession agreement between the Nigerian Ports Authority (NPA) and the terminal operators.
The agreement would also compel operators to invest more in relevant equipment.
Managing Director, NPA, Mohammed Bello-Koko, disclosed this while giving an insight into the revised concession agreement with the five terminal operators whose concession agreements have expired and are desirous of renewal.
Emphasizing that the new agreement will factor in the port modernisation agenda of the Federal Government, Koko noted that the processes of renewal in the agreement of the five terminal operators that expired since 2021 would assuredly get a speedy process and conclusion.
He noted further that the 2006 agreement is outdated and the Federal Government will leverage on the current renewal processes to factor in the new realities of the modern port development agenda that will make the lessees more responsible for the maintenance of Quays, Fenders and allied matters such as port illumination.
“NPA is concluding discussions on the terms of the agreement and once that is sorted, the report will be sent to the Bureau of Public Enterprise (BPE), Infrastructure Concession Regulatory Commission (ICRC), Federal Ministry of Transportation (FMOT), and the Federal Ministry of Justice (FMOJ).
“The agreements were signed in 2006, and, while some have expired, some are still running.
“But, the expired ones are being renewed and what we are looking at is what will be in the best interest of the country.
“What was agreed in 2006 is no more tenable. The demands of the country and of the NPA are different from what they were in 2006.
“The Federal Government, through the NPA, is resolved to hold Terminal Operators more accountable under the new agreement, on maintenance as well as on deployment of modern equipment in sufficient quantity.
“Two of the expired leases have agreed to invest in the development of the Tin Can Island Port.
“The need to discuss with the other terminal operators whose leases have not expired became important since development will entail the whole berth.
“It is these fine details that are being worked on, but I believe within the month, they will be finalized and sent to Federal Ministry of Transport (FMOT), Federal Ministry of Justice (FMOJ), BPE, and ICRC accordingly”.
The MD said, the NPA management under his leadership will continue to uphold global best practices and ensure the best deal is secured for Nigeria.
He said the new agreement will ensure that the operators are held accountable for their commitment to invest in port infrastructure to ensure efficiency.
On the whole, the renewal of these leases has afforded NPA the opportunity to take a closer look at the Port Modernization project of the government, and preliminary agreements.
Together the renewal documents will be communicated to the Federal Ministry Of Transportation in a few day’s’ time, he explained.
By: Chinedu Wosu
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