NPA Concessions Tin Can Water Treatment plant

The Nigerian Ports Authority (NPA) has concessioned the Tin-Can Island Port Water Treatment Plant 18-years after it was last used.

The Water Treatment plant located within the Tin-Can Island Port Complex was concessioned to Sandust Tin-Can Water Project (STWP), Ltd, a subsidiary of Sandust Energy & Engineering Ltd.

The firm is currently discussing with some of its project financiers to ensure that the rehabilitation work is completed within its specified timeline.

Speaking on Monday during the official handing over of the facility to STWP, the Managing Director of NPA, Dr. Abubakar Dantsoho, said, the concession of the water plants in Tincan and other similar ports in the country are out of necessity.

Dantsoho who was represented at a brief handing over ceremony by Murkta Umar Isah, Acting General Manager Engineering of NPA, revealed that most of the water treatment plants in the ports have gone moribund for decades.

Isah said by allowing them to continue to lie fallow without any value addition means that NPA or the government will be losing huge sums of revenue.

According to him, most vessels that visit Nigerian waters always look for fresh water to replenish their stock, adding that in most cases the crew of the vessels source for supply from outside parties.

He said the sources supply water to vessels in water tanks which, according to him, are often not enough for them.

“So the NPA now capitalized on the national policy on public-private partnership to structure a concession like a sort of management contract that would outsource an operator that would manage and maintain the plant for efficiency.

“The process went up to the Infrastructure Concession Regulatory Commission (ICRC) and the Federal Executive Council (FEC) which later approved the concession for a tenure of 16 years.

“So now it is expected that there are obligations on the part of the concessionaire and also on the part of the government. So the concessionaire has met all its conditions precedents. It was as a result of that, that we now approve this date as the effective date of the concession agreement. So part of the responsibilities of the concessionaire is to transform the water treatment plant, rehabilitate it, maintain it, bring in more equipment and produce water for sale to vessels which would lead to earning income in dollars.

“NPA on its part is supposed to provide a level playing field for the operators to operate. What I mean by a level playing field is that the policies of the government should be friendly to the operators not only in Tincan but also in Apapa Port and that all the things required by the concessionaires that government through the NPA should be able to provide them.

“When the concession has taken full effect, then a lot of vessels would be coming here, some may even come because of water alone, they will come and go which means the government would earn huge revenue.

“This is only for Tin-Can. We have similar arrangements for Apapa Ports to another concessionaire; we have in other ports too. Everybody has his own area of influence, there is going to be a healthy competition among them because they are even supposed to be supplying water to vessels offshore, those that can’t come in. They are supposed to acquire their own supply barges and using those supply barges they can now be supplying water offshore to anywhere.

“The revenue projection is well documented. It was based on the projection that the concession was awarded, I don’t have the projection off by heart but I know it is huge in dollars,” he added.

Also speaking, the management of STWP said the rehabilitation of the moribund Tin-Can Island Port Water Treatment Plant, Lagos, is expected to gulp a whooping N11 billion.

Managing Director of STWP Ltd, Mrs. Angela Attach, stated that the water treatment plant became moribund few years after it was constructed by Julius Berger in 1976 and commissioned in 1977.

She explained that the current concession agreement between STWP and NPA will last for 15 years within which it is expected to restore the supplier of fresh water to visiting vessels and port users at an internationally approved price.

“The project cost is N11 billion. We hope to raise the fund from equity investment and we are also discussing with some banks. We haven’t signed anything with any of them yet, but they have looked at the numbers and they have discovered that it makes sense.

“There is currently a law or an obligation that NPA will supply fresh water to visiting vessels and port users. But NPA has not been able to deliver on that obligation because for more than 18 years the plant has not worked. By obligation, NPA has to make it work. So we have come into partnership with NPA to fulfill that obligation so that NPA will be able to meet its own responsibility.

“Secondly, the only reason why we have independent or black market water suppliers is because NPA has not met that obligation and there is a requirement and demand. The local suppliers have used barges and tanks to supply untreated water. The fact is that port users need treated waters and potable water. So there will still be requirements for the local suppliers, but the market will shift,” she added.

Speaking further, she said the concession agreement is to ensure compliance with regulatory and international standards for water quality, environmental protection, and fair pricing, and that STWP is prepared to cater to emergency water supply needs.

“To also Increase safety standards of the port by revamping the hydrant lines and positioning it to better respond to emergency situations

“Improving the quality of water that visiting vessels obtain to ensure that good health and safety standards are maintained

“Furthermore, STWP will play a pivotal role in boosting port revenues, aligning with the Federal Government’s strategic initiative to enhance national revenue streams” she stated.

She revealed that over the next 12 months, STWPL will partner with a leading Engineering, Procurement, and Construction (“EPC”) firm and Original Equipment Manufacturer (“OEM”) to deliver a world- class project aimed at restoring the prestige of Tin Can Island Port and allowing it to compete favorably with any port worldwide.