Economy
THE Work Bank is set to offer the Nigerian Ports Authority (NPA) a loan to rehabilitate the failed sections of the Tin Can Island port and the Lagos Port Complex (LPC) Apapa, if the concessionaires operating the affected terminals fail to commit to fix the port on time, it was learnt.
Addressing reporters in Lagos over the weekend, its Managing Director, Mr. Mohammed Bello-Koko said many years ago NPA had approached the World Bank for a similar assistance.
He bemoaned the two-week notice he and his colleagues gave operators before entering the terminal for inspection.
NPA, Bello-Koko said, might terminate the concession agreement it has with some terminal operators if they failed to invest in the port infrastructure they had been using for the past 10 to 15 years.
The affected five terminal operators, Bello-Koko said, were being monitored to ensure they did the right things as stated in the agreement they had signed with the NPA.
The NPA helmsman said the introduction of the Infrastructure Concession Regulatory Commission (ICRC) Act by the Federal Government meant that the renewal of concession agreement for terminal operators was done according to the law or guidelines.
“We have had interest from the World Bank, IFC, Afri-Exim Bank and others. Surprisingly, it was the World Bank that actually gave money to the NPA to construct the part of Apapa port so many years ago. The World Bank has come again to tell us that if we need funding, they will give it to us,’’ he explained.
According Bello-Koko, “Tin Can Island Port, we all know what is happening there. The port is practically collapsing.We need to focus our budget towards the rehabilitation of those quay walls at the Tin Can port. We have taken a holistic review of decaying infrastructure at our ports and have decided that it is very important that we rehabilitate Tin Can and Apapa port.
“What we have done is to start talking to lending agencies, even though we don’t intend to lend. We are telling the terminal operators that you people have operated these port terminals for about 15 years. How much money are you going to invest in these port terminals? We are telling some of them that their leases have expired, how much will they be investing in the ports?
He said for the NPA to renew their concession agreements that have expired, about five of them, they need ed to have categorical commitment from the affected terminal operators on the development of these port terminals. If the terminal operators could not give commitment, he said, they should either give the terminals to someone else or borrow money to rehabilitate those ports.
“However, if we borrow money to rehabilitate those ports, then what the terminal operators are paying will have to change? The rates will have to go up. If we don’t do that, these terminal operators will keep managing those places, and the ports will keep collapsing.
He further said: “Because of their financial interest, these terminal operators don’t want us to re-construct the affected port terminals because that will mean stopping them from operating.
“Again, the Minister also said the port terminals are in their worst state; that what is the plan of the terminal operators to invest more. Also, the NPA asked the terminal operators about their development plans for the port terminals.
“The affected terminal operators have been given a temporary extension of six months. The essence is to ensure that the right thing is done at the ports. The essence is that we have value for money. If today, we revoke the current concession agreement and bring new people onboard, the new bidders will naturally pay the NPA far higher than what the current terminal operators are paying.
“We know this, but we are not yet saying that. What we are saying is that let’s sit on the table and create a concession agreement that is fair. We need an agreement that holds the terminal operators responsible for their actions.
“Before, if I or any of my colleagues can go into the port terminals, we have to give the terminal operators two weeks’ notice even when such visits is for inspection. We have to have an agreement that is fair and adds value for money,” Bello-Koko explained.
On the Eto E-Call-Up system, the NPA boss said there were plans to introduce another app to serve as a competitor for the current system.
“One of the major complaints by stakeholders against Eto is extortion. Yes, the Eto app itself once in a while suffers glitches, but the major complaint is extortion. That’s why we are having collaboration with the Lagos State Government and the Police Commands to checkmate the menace of illegal checkpoints.
“I have said that we are likely going to create a second app because we want to establish competition and give people alternatives aside Eto,” the NPA chief said.
(The Nation)
KN
– May 16, 2022 @ 16:10 GMT |
Tags: Bello-Koko Mohammed Bello-Koko Work Bank
