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NPA grants temporary 6-month concession renewal to 5 terminal operators

The Nigerian Ports Authority (NPA) said it has granted a temporary six-month renewal to five terminal operators after their concession agreement termed out, according to the Managing Director of the authority, Mohammed Bello-Koko.

The NPA chief disclosed that five of the terminal operator’s leaseholds had expired and were due for renewal, but noted that the port authority is having discussions with the operators on the area of development at the ports.

He said the five terminal operators were being monitored to ensure they did the right things regarding their commitment and obligations as agreed under the Port Concession agreement.

Bello-Koko said the affected terminal operators were given a temporary six-month renewal with conditions to meet before they would have their concession agreement renewed permanently.

“At the point of expiration of any concession agreement, the then Legal Agreement says that the terminal operators can apply for renewal and we will renew.

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“It was after the concession agreement that the ICRC Act came onboard. The ICRC Act requires that there should be a new owner, a new bid and so on and so forth,” the NPA boss said.

The NPA boss also said that before the agency would renew the concession agreement of some terminal operators, there must be an agreement on the development of the ports.

“For us to renew these concession agreements that have expired, about five of them, we need to have categorical commitment from the affected terminal operators on the development of these port terminals.

“If the terminal operators cannot give us such commitment, then we either give the terminals to someone else or go and borrow money to rehabilitate those ports.”

“However, if we go and borrow money to rehabilitate those ports, then what the terminal operators are paying will have to change. The rates will have to go up. If we don’t do that, these terminal operators will keep managing those places, and the ports will keep collapsing. Because of their financial interest, these terminal operators don’t want us to re-construct the affected port terminals because that will mean stopping them from operating.

“We have had interest from the World Bank, amongst others. Surprisingly, it was the World Bank that actually gave money to the NPA to construct part of Apapa port so many years ago. The World Bank has come again to tell us that if we need funding, they will give it to us.”

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