NPA cancels contract for $2.6bn Badagry deep seaport project

THE Nigerian Ports Authority (NPA) has cancelled the contract for the $2.6bn Badagry deep seaport project, stating that the deep seaport master plan was wrongly done. This is even as the Authority explained that it has begun the process for fresh bids for the approval of a new port master plan for the Badagry deep seaport project.

Speaking with Tribune Online exclusively in her office, Managing Director of the NPA, Hajia Hadiza Bala Usman explained that what is currently required in Nigeria is to fast-track the development of deep seaports that will make her ports competitive.

According to the NPA MD, “In view of the change in the dynamics of the shipping industry, where larger vessels are now calling at seaports worldwide, these large vessels require a draft of 17meters to 18meters, and it is not possible to dredge a channel of 5meters to 17meters. So what we need to do now is to prioritize having those deep seaports that will have the required draft for larger vessels.

“Our ports are river ports, and we need to move on to have deep seaports. In that area, we are working with Lekki deep seaport. We have signed the necessary papers, and they are on the process of completing their payment as regards their financing terms. They have built the Breakwater. We are hoping that it will be a milestone achievement. We also have other proposals like the Ibom deep seaport and the Ibaka deep seaport.

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“With Badagry deep seaport, the Outline Business Case (OBC) was reviewed. Some of the responsibilities of government were taken and put in the OBC for Badagry port. I have objected to that and written to the Federal Ministry of Transportation on this. I have also written letters to the promoters of the Badagry deep seaport, telling them that roles like marine services are responsibilities of government as stipulated within the Port Act. So they cannot take it away and say they are going to provide such services. We are currently discussing with them to review the projects OBC so that it states what their obligations are and what government obligations are.

“And while doing that, we also understand that they will need a Port Master Plan. That is also a challenge that we have with the Badagry project. When I assumed office, I inherited a consultant that was supposed to do a Port Master Plan for the Badagry project, but the consultant did a very bad job. When we took the job to the consultant that did the project’s Terms Of Reference (TOR), our internal people looked at it and said it wasn’t good enough. Even the consultant that did the TOR confirmed that the job wasn’t properly done.

“So because of these issues, we cancelled the contract, and the project’s promoters took us to court. We are currently in arbitration. Now we are working on re-awarding the contract. I just gave the go-ahead for the engagement of another consultant that will do the Port Master Plan. The master plan will allow us to know where ports should be deployed in the country in-view of environmental issues, in view of commercial and financial liabilities.

“If you look at the Badagry and the Lekki deep seaport projects, they are all within the Western ports. The port master plan will guide us on whether it is okay to have two deep seaports in close proximity to each other.”