NPA Seeks $600m to reconstruct Tin-Can Port

04 Jun NPA Seeks $600m to reconstruct Tin-Can Port

The Nigerian Ports Authority (NPA) has begun discussions with some multilateral funding agencies to secure funds for the total reconstruction of the failed existing quay walls and berths of the Tin-Can Island Port.

NPA Managing Director Mohammed Bello-Koko, said on Friday an estimated sum of $600 million is required to overhaul the failed Tin-Can berths.

According to him, the Tin-Can port has reached its end of life cycle and needs total reconstruction, but the NPA has been doing remedial works, which is no longer economical.

He further said there is a need to carry out a holistic and full reconstruction of Tin-Can Port, and the Authority has had discussions with the terminal operators to think of ways to do that.

“There are many options. The first option is to get a holistic design rather than allow the terminal operators to individually reconstruct their berths, we believe it is better to have a complete design to enable the NPA take a decision on how to do that,” he said.

On the funding of the project, Bello-Koko said the first option is for the NPA to source for fund currently estimated at over $600 million.

“We have started having discussions with multilateral funding agencies to fund the reconstruction. The other option is to go to the government to request that the NPA be allowed to use a certain percentage of its revenue which is transferred to the consolidated revenue fund on yearly basis to fund the reconstruction. We transfer about N60 billion a year and we can use about 50 percent of that to repair Tin-Can.

Another option is to do hybrid funding where NPA funds part and multilateral agencies fund the rest,” he said.

He said the final option is for the terminal operators to fund the reconstruction but the issue is that it is not all the terminal operators that have the same financial capacity or will be able to source funds at the same time.