Escravos Seaport Deal Faces Brickwall as FG Revalidation Stalls
Esther Oluku
Promoters of Escravos Seaport Investment Complex (ESIC) have said that development of the project is yet to commence as they are yet to receive statutory revalidation from the federal government.
The partners, Mercury Maritime Concession Company (MMCC) and EDIB International of Hong Kong, represented by MMCC Chairperson Rear Admiral Andrew Okoja (rtd), made this disclosure at a press conference in Lagos.
A provisional approval granted by the federal government through the Ministry of Transportation in November 2020, Okoja explained, enabled the promoters of ESIC to carry out preliminary consultations, which have so far cost $15 million, in addition to $1 billion as an expression of “capacity” to deliver on their commitment.
Okoja expressed optimism that the ESIC project if given the necessary approvals by the federal government, state government and statutory authorities will be completed in five years starting 2024 while highlighting that it’s partner and project financier, EDIB International, were threatening to withdraw their $27.29 billion investment proposition if necessary approval was not granted by the federal government in June, 2024.
The ESIC project, which is to be situated at Escravos (Gbaramatu Island/Omadino) in Warri South-West Local Government Area, Delta State, is designed to include a deep seaport, a free trade zone, a gas complex, an oil refinery, independent power plants, a nature park, an airport, and mini cities. The promoters have indicated they are collaborating with international and local technical partners to ensure its success.
When MMCC proposed the ESIC project in 2019, it estimated the total cost at $2.9 billion. The provisional approval granted by the federal government in November 2020, offered ESIC a 50-year build-operate-transfer (BOT) lease agreement.
The Delta State government had earlier granted approval to help the promoters secure 31,000 hectares of land for the project site. In June 2023, MMCC announced that the Delta State government had again validated the ESIC contract, reaffirming its confidence in the project.
However, with successive changes in government, MMCC and its partner, EDIB International, are seeking revalidation from the current federal administration to secure EDIB’s $27.29 billion investment stake.
According to Koko, these setbacks include the violation of the open bidding process, as MMCC proposed a monopoly on deep seaport operations in the eastern part of the country. Koko stated:
He said, “Mercury Maritime Concession Company Ltd (MMCC) submitted a proposal requesting the Nigerian Ports Authority (NPA) to approve its request as the ONLY deep seaport-free zone in the eastern zone of the country for decades to come.
“The Authority has received numerous proposals for developing deep seaports, including Ibom, Burutu, Bakassi, Bonny, and the Port of Benin, all of which are at various stages of review. Nonetheless, we have carefully outlined the requirements for this project.”
Other issues raised by Koko include the fact that while the port falls under the purview of the NPA, the broader ESIC project requires extensive consultations.
Meanwhile, Okoja, speaking to journalists in Lagos stated that MMCC has been engaging with the Federal Ministry of Industry, Trade, and Investment through correspondences.
