Daily Trust (Abuja)

The Minister of State for Water Transportation, Prince John Okechukwu Emeka yesterday signed $65 million contract with Nigerian Liquefied Natural Gas (NLNG), Nigeria Port Authority (NPA) and Messrs Bonny Channel Company(BCC) for the funding of Bonny channel expansion in Rivers state...

Signing the agreement in his Abuja office, the minister stated: "The project which would cost $65 million would be funded by NLNG while the repayment of the fund by NPA would be on an amortization arrangement of 60%:40% (NLNG: NPA) on port dues on NLNG tankers".

He said that a moratorium period of six months would be observed, adding that Messrs Bonny Channel Company(BCC),a Joint Venture company between NPA and a consortium of technical partners led by Dredging International would execute the project, which is expected to be completed in twenty four weeks after mobilization to site.

In order to achieve this, he said that a technical agreement between BCC and NPA outlining milestones for contract, execution and payment was endorsed.

Stating that the benefits of the project would be derived from through the execution of increased revenue earnings for the country through sale of more products by the NLNG, a competitive leverage to NLNG in the sale of their products, return on investment translating to over us $100m in NPA revenue over time and safety and the security of the channel.

He, however, thanked all those who played a part in making this occasion possible, adding that it is instructive to note that the project is part of President Yar'adua programme to ensure a sustainable economic growth for the country.

"Bonny Channel is the access to the Nigerian Liquefied Natural Gas that has emerged as one of the major revenue earners for our country and a leading global LNG supplier. The productive capacity of the NLNG has grown exponentially over time. It is estimated that the proposed commissioning of trains six and seven would further increase its output".

He added that 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 has mapped out 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 12.5metres to 14.3metres chart datum and width of 215metres to 230metres.