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The Federal Government through the Nigerian Ports Authority (NPA) has handed over the Tincan Island Water System facilities to Sandust Tincan Water Project Limited after it signed a 16-year concession agreement with the firm valued at N11bn.
The NPA had said that the concessionaire would use this year to rebuild and rehabilitate the facility before the agreement would officially kick off on September 1, 2025.
Speaking during the hand-over ceremony at Tincan Island Port Complex on Monday, the Managing Director of NPA, Dr Abubakar Dantsoho, explained that the concession agreement was borne out of necessity.
He added that most of the water treatment plants at the ports had gone moribund for decades.
Dantsoho, who was represented at the event by an Assistant General Manager with NPA, Mukhtar Isah, stated that by allowing the facilities to continue staying idle, without any value addition, the NPA and the government would lose a huge sum of revenue.
According to him, most vessels that visit Nigerian waters always look for fresh water to replenish their stock.
The NPA boss stated that the process went up to the Infrastructure Concession Regulatory Commission and Federal Executive Council which got approval for the concession for 16 years.
He said, “Now there are obligations on the part of the concessionaires and also on the part of the government. The concessionaire has met all its conditions and 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 was to transform the water treatment plant, rehabilitate it, maintain it, bring in more equipment, and produce water for sale to vessels which will lead to earning income in dollars."
He said the NPA on its part was supposed to provide a level playing field for the operators to operate, stressing that the government would be able to make the revenue in dollars.
Dantsoho maintained that when the concession takes full effect, a lot of vessels would be coming, “some may even come because of water alone, they will come and go which means the government would earn huge revenue,”
The Managing Director and Chief Executive Officer of Sandust Tincan Water Project Limited, Mrs. Angela Attah, said that the concession which is for 16 years is valued at N11bn.
She added that the company was targeting 100 cubic meters of water per hour.
While acknowledging that the company is in good discussions with the financial bodies, Attah however, said that they were yet to sign an agreement with any of the financial bodies
She maintained that the partnership would help the NPA ensure the supply of clean water to the vessels and others at the port.
“The only reason we have independent black market suppliers is because the NPA has not met their obligations and there is a requirement and also, there is a demand. What has happened so far is that the local suppliers have used barges to bring untreated water here and the fact is that they need treated water, they need fresh water and they need portable water,” she said.
According to her, while the independent black market suppliers were able to bring untreated water that is not the requirement for the vessels, there will still be a market for water, “because we know that water is a critical resource that we all require, it is just that the market will shift, independent water black market supplies will lose market because the people want water they will come and get fresh water.
“The fact is that the black market water suppliers have met a need that was there. So we won’t come on day one and throw them out. I think we will want to discuss with them and see how, if they want water from us that is also possible.”
