NPA, NLNG in N8.3bn deal for Bonny channel expansion

AN N8.3 billion ($65 million) funding agreement for the expansion of the Bonny channel project in Rivers State was signed yesterday between the Nigerian Ports Authority (NPA) and the Nigerian Liquefied Natural Gas (NLNG).
Minister of State for Water Transportation, Prince John Okechukwu Emeka, who signed the agreement on behalf of the Federal Government, said the NLNG would fund the project while repayment would be made by the NPA on an amortization arrangement of 60 per cent: 40 per cent (NLNG:NPA) on port dues on NLNG tankers.
The expansion (dredging), according to him, is to ensure a sustainable economic growth for the country.
Managing Directors of Nigerian Ports Authority (NPA), Mr. Felix Orbude; Nigerian Liquefied Natural Gas (NLNG), Dr. Chris Haynes; Messrs Bonny Channel Company (BCC), Dr. Erik Van Wellen, respectively, signed the funding agreement on behalf of their firms. BCC is the joint venture company between NPA and a consortium of technical partners led by dredging international.
�The benefits that would be derived through this project shall include revenue earnings for the country through sale of more products by the NLNG, a competitive leverage to NLNG in the sale of their products and return on investment translating to over $100 million in NPA over time as well as safety and security of the channel,� the minister said, adding: �Bonny Channel is the access to the Nigerian Liquefied Natural Gas that has emerged as one of leading global LNG suppliers. The productive capacity of the NLNG has grown exponentially over time. It is estimated that the proposed commission of Trains 6 & 7 would further increase its output.
�Consequently, in order to meet the logistic challenges that would be associated with handling deep draughted tankers and the envisaged increase in volume of traffic, NPA in consultation with the management of NLNG mapped out a strategic development programme that would ensure unimpeded operations.
�This project would entail a capital dredging campaign that would result in the expansion and deepening of the channel from 12.5 metres to 14.3 metres chart datum and width of 215 metres to 230 metres.
�The project which would cost $65 million would be funded by NLNG while the repayment of this fund by NPA would be on an amortization arrangement.

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