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WARRI OLD TERMINAL A

Sector

Transport

Location

Delta

Value

US$ 19.8 million

Phase

Implementation

Sponsoring Agency

Nigerian Ports Authority

Last update

16-07-2020 11:13:23

WARRI OLD TERMINAL A

Sector

Transport

State

Delta

Value

US$ 19.8 million

Phase

Implementation

Sponsoring Agency

Nigerian Ports Authority

Last update

16-07-2020 11:13:23

  • Basic project information
  • Parties
  • Contract information
  • Performance information
  • Announcements
  • Gallery

Basic project information

  • Project need

    The terminal was concessioned to ensure increased efficiency of port operations, decrease the cost of port services to port users, and boost economic activities and accelerate development, among others. It is expected that the concession will bring about improvements to the leased properties, as further described in the development plan handed over to the terminal operators during contract execution.

  • Description of asset

    Real property in the Delta Port and certain immovable property affixed to the premises, and making certain improvements to the lease property.

  • Description of services

    Handling and delivery services for cargo, including without limitation stevedoring, loading and unloading of vessels, transporting, sorting, and storage of cargoes at the port terminal.

  • Rationale for selection of PPP model

    A landlord model was selected to ensure that the government retains the right to supervise daily operations at the ports. The model prescribes certain obligations that must be carried out by the lessor, such as maintenance, repairs, renewals, and replacements of the quay wall and navigational aids on the premises during the concession time. The lessor is also expected to provide certain utilities and facilities to enhance port operations. Such utilities/facilities include electricity power, water supply, tug boats, and repairs and maintenance of access/common user roads.

  • Stakeholder consultations

    Done in 2005 before the port concessions. Over time, the Infrastructure Concession Regulatory Commission has also made efforts to meet with stakeholders to the ports during its periodic monitoring visits. These stakeholders include public sector officials, National Assembly members, terminal operators, and port users.

     

    SUMMARY OF STAKEHOLDER ENGAGEMENT ON THE REVIEW OF PORT CONCESSION CONTRACTS

    The Commission in May, 2015 recommended the review of the port concession contracts signed by the Nigerian Ports Authority (NPA) in 2005/2006 with Port Terminal Operators in Apapa, Tin-Can Island (Western Ports), Onne, Port-Harcourt, Warri and Calabar Ports (Eastern Ports). The NPA on 2nd March, 2017 informed the Commission that it has initiated the review of the port concession contracts with terminal operators.

    The Nigerian Ports Authority set up an Inter- Agency Committee which was inaugurated on 16th May, 2017 following mutual agreement by the parties to review the contracts with the aim of improving on the Management of the port terminals.

    The ICRC was nominated as a member of the Committee among other stakeholders (The Federal Ministry of Justice, Bureau of Public Enterprises (BPE) and Federal Ministry of Transportation). Several meetings and interactive sessions were held by the Committee to review the contacts under three thematic areas of – Legal Issues, Administrative Issues and Operational Issues in the contract. The Committee visited all the port terminals in the Eastern and Western parts of the country between 12TH – 15TH December 2017 to carry out an on-the-spot assessment of the terminals and engaged with the operators on the contract review.

    The Committee received technical support from the World Bank through its Consultants - (MBTS) which assisted the Inter-Agency Committee on the review exercise.

    Current Status

    The parties met and negotiated the contract clauses reviewed and other essential issues which were considered during the review exercise. A draft supplemental agreement was prepared by NPA and sent to the Federal Ministry of Justice and the ICRC for review. The ICRC concluded its review of the supplemental contracts in May, 2020 and forwarded its views to NPA for consideration. Some of the issues considered during the review exercise were:

    1. Removal of Wrecks from the channels
    2. State of Marine Services and security
    3. Total size of the Terminal land handed over to operators – need for the original map of the premises to be given to all operators
    4. The impact of the standard gauge railway lines which will pass through the port terminals in Apapa and Tincan Island Ports. Operators sought for compensation over reduction in operational spaces, downtime of operations and demolition of structures.
    5. Performance assessment Issues: the stakeholders agreed that the operational benchmark will be based on TEUs and total throughput handled by each terminal
    6. Adherence to Dredging Plan by the Lessore
    7. Submission of Performance Bond by operators
    8. Insurance of the terminals’ Assets
    9. Payment of Lease fee in US Dollars  
    10. Provision of Scanners at the ports by the Nigerian Customs Service
    11. Inclusion of certain clauses in the contracts after expiration of the current term  such as Handback Guarantee, Appointment of Independent Expert, performance measurement, feedback mechanism, etc.
  • Project Summary document

    One-pager prepared by the ICRC, attached.

Project milestones

2005

15 June

Selection of Preferred Bidder

on the 15th june lessee submitted

2005

24 October

Commercial close

Execution of the Concession Agreement

2005

24 October

Financial close

Commencement of operation after fulfilling initial financial obligations

2031

22 November

Expiry of contract

Expiry of contract agreement

Parties

Sponsoring Agency

Nigerian Ports Authority

Sponsoring Agency Information

  • business_center Nigerian Ports Authority

Private parties

Intels Nigeria Limited

Private Party Information

  • business_center Intels Nigeria Limited

Contract information

Redacted PPP Agreement Risks

Redacted PPP Agreement

  • Redacted PPP Contract

    Redacted PPP Contract attached

    file_downloadWarri Old Terminal_Redacted.pdf

Risks

Type of risk Description Allocation Mitigation
Pre-construction risk Risk associated with project preparation/Permit and approval risk Public Sector
Construction / Completion Construction and Renovation of Terminal structures Private Sector periodical review of project implementation schedule
Cost risk Cost Overrun Private Sector
Refinancing risk Financial Close/Debt servicing/interest repayment Private Sector
Risk related to change in law, taxes, scope, technical standards, regulatory framework Project scope, laws, environment, government policies Public Sector
Exchange rate risk Fluctuation in country's exchange rate/devaluation/global impact Public and Private Sectors
Operating risk Competition, workers action, etc Private Sector
Tariffs Termination provisions

Tariffs

  • Tariff 1

    Throughput fee at break bulk/multipurpose terminals 2016/2017

    file_downloadNPA Published Tariffs.pdf
  • Tariff 2

    Throughput fee rate at Oil and Gas Related Terminals 2016/2017

    file_downloadNPA Published Tariffs.pdf

Termination Provisions

  • Concessionaire

    Events of Default Brief description Termination Payments Documents
    Insolvency Immediate termination notice Pay to the Lessor any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessor as a consequence of such termination
    Performance Failure Fails to perform the Operations for 14 consecutive days in an operating year or 60 non consecutive days in a non operating year. Pay to the Lessor any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessor as a consequence of such termination
  • Authority

    Events of Default Brief description of events of default Termination Payments Documents
    Government Action Lease property (in whole or in part) is expropriated compulsorily acquired or nationalized by a Government Agency. Pay to the Lessee any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessee as a consequence of such termination
    Government Action Lessor event of default in the first perating year Refund of commencement fee, all construction/develoment cost incurred by Lessee

Performance information

Performance failures

Performance failures

Performance Failure 1
Category of failure Financial objectives
Number of events 1
Penalty or abatement provided in contract Lessee guarantees to handle at least ninety per cent (90%) of projected cargo throughput as provided in its technical proposal
Penalty or abatement imposed If Lessee fails to achieve at least ninety per cent (90%) of such throughput, the Lessee shall pay the Lessor the throughput fees of the difference between the throughput handled and the guaranteed volume of ninety per cent (90%).
Penalty paid or abatement effected Yes

Announcements

  • Information will be published as soon as it is available.

Gallery

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    About Us

    The ICRC was established to regulate Public Private Partnership (PPP) endeavours of the Federal government aimed at addressing Nigeria’s physical infrastructure deficit which hampers economic development.

    Contact us

    • languagehttp://www.icrc.gov.ng
    • emailinfo@icrc.gov.ng
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