FG and Japanese Firm Ink $27.29 Billion Deal To Propel Escravos Seaport Development
In a significant boost to President Bola Ahmed Tinubu’s Marine and Blue Economy initiative, the Federal Government has struck a landmark deal with EDIB International Limited….CONTINUE READING
A Hong Kong-based firm, to fund the $27.29 billion Escravos Seaport Industrial Complex (ESIC) project. This venture, situated in Escravos (Gbaramatu Island/Omadino) Warri South-West Local Government Area of Delta State, will be executed through a Joint Venture Partnership (JVP) with Nigerian firm Mercury Maritime Concession Company Limited (MMCC).
EDIB International Limited, led by Chairman Chief Kwame Springer, is seeking government security for its substantial investment in the ESIC project. The firm requests written confirmation from the Federal Government and Local Government regarding the Free Trade Zone (FTZ) to secure the project financed by EDIB International Ltd.
To ensure the financier’s investment return with profit, a fifty (50) years concession deal has been proposed, allowing EDIB International Ltd. to Build, Own, Operate, and Transfer (BOOT) the ESIC deep seaport project. The Federal Government will facilitate the extension of the concession period to ninety-nine (99) years, enhancing the security of EDIB International Ltd.’s funding.
Rear Admiral Andrew Omaolo .S. Okoja (rtd), MMCC Chairman, emphasized the project’s strategic importance and the positive response from EDIB International following approvals from the Federal Ministry of Transportation (FMT) and the Delta State Government.
The ESIC project, launched in 2019, aims to transform 31,000 hectares of land into a Deep Seaport, Crude oil refinery, Gas Complex, Free Trade Zone/Industrial Park, Independent Power Plant (IPP), Airport, Nature Conservation Park, and more.
ESIC promises to attract Foreign Direct Investment (FDI) and elevate the economies of seven beneficiary States, fostering international trade, commerce, and industry. As a gateway deep seaport, ESIC will connect to hinterland destinations through marine, rail, and road transportation, facilitating cargo flow to more than seven (7) States and the Federal Capital Territory (FCT) Abuja.
Okoja highlighted the future River Niger Canal project, a partnership with the Suez Canal Authority (SCA) of Egypt, extending the ESIC seaport to Baro in Niger State, opening the canal to vessels up to 100,000 metric tons.
The project positions the seven (7) direct ESIC beneficiary states plus Abuja as equity partners, allowing them the right to use ESIC project capacity due to their contiguous location along transportation corridors. The collaboration between the Federal Government and EDIB International Ltd. marks a significant step toward unlocking the immense potential of the ESIC project, fostering economic growth and regional development.
