Alex Okoh, Director- General of Bureau of Public Enterprise (BPE) on Tuesday disclosed that the agency has commenced the review of all the concession agreements of Nigerian ports signed between Federal Government and private concessionaires in 2006.
Okoh stated this during an investigate hearing into the status and performance of the ports, held at the instance of House Committee on Privatization and Commercialization.
Okoh explained that holistic review of the concession agreement was to ensure that the ports were put into optimal performance, adding that the agency is also partnering the World Bank to provide needed capacity and technical assistance in that regard.
He observed that the role of the Bureau plays intermediary role between NPA and private concessionaires with the view to ensure adherence to the terms of agreements by both parties.
“We are undertaking a complete review of the ports concession agreements to ascertain and harmonize the issues affecting the optimal performance of the ports. The World Bank is to provide the capacity and the BPE is to serve as a confirming party,” Okoh stated.
The BPE helmsman further noted that the review will also help to re-assess the values of leased assets as well as factors that inhibit the realization of objectives of the concession such as poor dredging, inaccessible roads, inconsistent government policies and lack of regulatory framework.
In his remarks, Ahmed Yerima, Chairman of the Committee underscored the need to ensure successful implementation of the agreement in order to attract more foreign direct foreign investments into the Nigerian economy.
The lawmakers mandated the BPE and the NPA to submit copies of the supplemental agreements to the concessionaire terminal operators within 10 days and to conclude the agreement review within 30 days.
The lawmakers also tasked BPE to expedite and operationalize the concession agreement in a win-win situation and in line with global best practices.
During the presentation, some of the concessionaires operating in Lagos, Port Harcourt and Calabar ports, frowned at the poor condition of the ports, high lease fees and incidence of piracy in Nigerian territorial water, which were making them run at a loss.
