By Nelson Utip
The government of Cross River State has secured $3.5 billion from Afeximbank in Cairo, Egypt to fund The Bakassi Deep Seaport Project.
The state Governor, Bassey Otu made this known through his official X (formerly Twitter) handle on Tuesday.
Governor Otu said that the collaboration between the state government and Afreximbank will foster economic growth and development in the state.
“Exciting news! Secured $3.5bn Afreximbank funding for Bakassi Deep Seaport in Cross River State, boosting key infrastructure projects. Our collaboration with Afreximbank in Cairo is a game-changer for economic growth and development in the state,” Gov. Otu’s tweet read.
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The Bakassi Deep Seaport project which was envisioned in 2014, began with conceptual studies that led to the development of the terms of reference for the project’s Environmental and Social Impact Assessment (ESIA) by March 2015. Presidential clearance was obtained in accordance with Infrastructure Concession Regulatory Commission (ICRC) and the Federal Ministry of Transportation guidelines and approval of the Production Sharing Contract (PSC) and the inauguration of the PSC were also settled.
Ex governor Ayade’s attempt to kickstart the project proved abortive as he could not secure funding in spite of all assurances.
The Chief Economic Adviser of the last administration in the state revealed that the seaport is planned to be 16.0 meters deep, supported by an extensive free trade zone, aiming to establish the eastern maritime gateway of Nigeria, boost national and regional economies, and enhance the adjacent free trade zone and Bakassi Industrial City.
The port will also handle containers, store and import petroleum products and vehicles and serve as a logistical base for the regional oil & gas sector. In addition, it is meant to act as a trading hub for West Africa, increasing import capacity for essential food and agricultural products and enhance export capacity for industrial outputs and natural resources.
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The port’s operational structure is designed to enhance private sector involvement and ensure that The Nigerian Ports Authority (NPA) remains the overall owner. However The NPA will initially outsource terminal operations through concession agreements for effective management. NPA will also outsource construction and maintenance and compensate contractors through availability of payments to ensure continuous facility upkeep. It will collaborate with a port management company that includes both public and private shareholders to oversee development and potentially issue sub-concessions, thus improving efficiency with combined oversight.
A private consortium is already granted full control over the development, operation, and eventual transfer of the project, thereby utilizing private expertise and financing to minimize public investment risks.
With the facility of $3.5 billion from Afreximbank by Governor Otu, the project‘s potential could be realized if construction proceeds as planned and will finally bringing to fruition the long awaited project according to financial experts.
