The Trouble With The Proposed Badagry Deep Seaport

…CONTINUE FROM YESTERDAY

BY EGUONO ODJEGBA

Effects of Court Cases

Oyetola, Minister of Marine and Blue Economy

Irrespective of speculation that former President Goodluck Ebere Jonathan actually conceived the idea of the Badagry Deep Seaport project and succeeded in getting his successor, President Muhammadu Buhari to endorse it, it is unclear how former APC leader, now President Bola Tinubu relatives, Adewale Tinubu and Olakunle Tinubu of Oado Petroleum had a dig in and came up as the project promoters.

Aside sweet talks by government officials at very top levels, the Badagry host communities have also expressed worry of a buy-out and the possibility of losing their ancestral land; and has demanded a clear and well documented agreement to avert perceived forceful takeover of their land or forced displacement, denying of any compensation package to people of the affected communities.

As a safeguard, he said one of the communities instituted a court case against the investors. While it is unclear if the case is still subsisting, indigenes say they will not allow any form of subterfuge to deny them of their ancestral right to the land to be acquired for the project.

Earlier in 2019, the project reportedly dragged the Federal Government to court after the Nigerian Port Authority (NPA) faulted and rejected the Outline Business Case (OBC) the promoters submitted, in which they allegedly sought to take over some responsibilities of the NPA inclusive of the marine services.

Then Managing Director of NPA, Ms Hadiza-Bala Usman, who revealed the legal action said it was impossible to move forward with the planned project which she said was wrongfully drafted.

DC Yahaya Idris, Rtd, President, Badagry Chamber of Commerce, Industry, Mines and Agriculture

She said, “The Outline Business Case for Badagry deep seaport was reviewed. Some of the responsibilities of the government were taken and put in the OBC for Badagry port. I have objected to that and written to the Federal Ministry of Transportation on this. I have also written letters to the promoters of the Badagry deep seaport, telling them that roles like marine services are responsibilities of the government as stipulated within the Port Act.

“So they cannot take it away and say they are going to provide such services. We are currently discussing with them to review the projects OBC so that it states what their obligations are and what the government’s obligations are. And while doing that, we also understand that they will need a Port Master Plan. That is also a challenge that we have with the Badagry project.

“When I assumed office, I inherited a consultant that was supposed to do a Port Master Plan for the Badagry project, but the consultant did a very bad job. When we took the job to the consultant that did the project’s Terms Of Reference, our internal people looked at it and said it wasn’t good enough. Even the consultant that did the TOR confirmed that the job wasn’t properly done.”

Sadly the NPA decision which considered hasty and shifty was akin to shifting the goal post in the middle of the game, going by the CEO’s admission.

“So because of these issues, we cancelled the contract, and the project’s promoters took us to court. We are currently in arbitration. Now we are working on re-awarding the contract. I just gave the go-ahead for the engagement of another consultant that will do the Port Master Plan. The master plan will allow us to know where ports should be deployed in the country in-view of environmental issues, in view of commercial and financial liabilities.”

Apparently acting on informed perspective and broad based national interest, the former NPA boss said the authority has also resolved to do a critical review of ports master plans; a factor that may have triggered some drawback and unforeseen negative reactions.

“If you look at the Badagry and the Lekki deep seaport projects, they are all within the Western ports. The port master plan will guide us on whether it is okay to have two deep seaports in close proximity to each other.”

While the status of these court cases could not be ascertained as at the time of going to press, observers believe they may have affected the timelines for the project, one way or the other.

Unending Delay

While speaking on delays about the take off of the construction of the port many years after it was initiated in 2012, Hon. Babatunde Hunpe, House of Representatives member, representing the Badagry Federal Constituency, expressed sadness that the delays were becoming annoying and unbearable; but supported delays associated with due process which he said is customary.

Hon. Hunpe, who revealed that the project had been discussed on the floor of the House noted that the preliminary processes required for the port project to take-off contributed largely to the delay.

A staunch believer in due process, he expressed confidence that the Badagry port project is on course and will be actualised.

“I met with the former Managing Director of the Nigerian Ports Authority (NPA), we had a long discussion and she disclosed the level that they were on the port project, which gave the assurance that the project was coming up.

“I have also seen some steps taken by the NPA and I was able to get this because I am a member of the committee on special duties and so, I have the privilege to know what they are doing,” he said.

Mutual Commitments

NPA in 2020 announced that the promoters made a lump payment of  $500,000 deposit into an escrow account to signify their commitment towards the port project. But for NPA’s insistence that the promoters must represent its Outline Business Case (OBC) for the port which was accepted after a review, the project may have progressed more than where it currently is. Although the project feasibility studies was submitted early and accepted, the rejection of the OBC made it impossible for construction works to commence.

With the OBC hurdle over, other ancillary issues including compensation to land owners reared its head and are yet to be concluded.

Designed to run at an annual throughput capacity of 1.8 million Twenty-foot Equivalent Units (TEUs), the project will be implemented in four phases, with the overall project cost estimated at between $2 billion and $3 billion.

Pundits predict that if the project had gone as planned at inception,   when fully on stream, the port would have addressed the nation’s annual container traffic would have grown by as much as 10 million Twenty-foot Equivalent Units by 2030.

Resolutions of All Disputes

As public interest in the Badagry Deep Seaport project rises and fall, President of the Badagry Chamber of Commerce, Industry, Mines and Agriculture, Mr.  Yahaya Oladiran Idris last week stirred the hornet’s nest when he appealed to the federal government to resolve all outstanding misunderstandings appertaining to the project and ensure that the builders move to site this year.

A retired deputy comptroller of customs, Idris said the Badagry Deep Seaport has the potential for upping the nation’s cargo transshipment hub status while reducing the incidence of cargo related vices such as the smuggling of imported vehicles owing to emergency executive and fiscal policies.

As a matter of fact, the port will lead to a considerable reduction in smuggling, if not by zero percent but at least by 20%, when completed,” Idris said.

The retired Customs officer maintained that the construction of the port would attract more investors to Badagry and provide job opportunities for artisans and vendors.

“As a chamber, we are expecting the construction of the port to start in 2025. We are enjoining the government, the promoters and landowners to talk and settle the grey areas in the port agreement. The port will add to the growth of Badagry,” said he.

But a government insider who doubles as a PPP expert faulted the appeal for urgency and argued that very little can be done since due processes are methodical and must not be rushed and be allowed to conclude.

Noting that the call for urgent action is misplaced, the respected official explained that until and unless the process of relocating residents of the acquired land is concluded, nothing legally binding can be done.

“The promoters had gotten approval from LASG to resettle the villagers that would be affected by the port development. This is a process that is being undertaken. The port development has neither been abandoned nor forsaken.

“Port development is a process, not an event. This is a PPP, it is not a government project. We haven’t yet reached Financial Close, there are conditions precedent that have not yet been fulfilled. We are talking of a project of over $2billion, financiers would have to do a lot of due diligence”, he warned.

Give and take, above official position appears like a child’s kite caught under a whirlwind as the fate of the Badagry Project has tapered off a wide range of ‘proposal and consent’ syndrome with profound legal, economic and political implications that are not easy to bypass or walk away from.

Ideas, emotions and finances have been invested with varying degrees of expectations by different stakeholders, thus a revisit of the whole issues has become necessary.

Perhaps, a review is possible where inaccurate and grandiose permutations may have been given; where inappropriate concessions and considerations may have been wrongfully obtained, and where a return to the drawing board based on heartfelt contrition is also not an opportunity to be ignored or neglected.

Thus submissions and opinions hitherto held by any of the interested parties that are considered unproductive, has a chance of been reworked and represented.

Whilst all concerned apparently wish for some sort of speedy conclusion of all outstanding issues, it does seem clear that the civil service, slow approach may have taken the centre stage; hence any haste, going forward, may be considered inappropriate.

Badagry Port Prospects

The Badagry Port and Free Zone include a container terminal, oil and gas services and a liquid bulk terminal, with cargo and Ro-Ro facilities. Following APM Terminals’ appointment of Royal HaskoningDHV to work on the project and developed the port layout and master plan, including the procurement and supervision of onshore and offshore soil investigations, hydrographic surveys and met-ocean studies.

Interestingly, the promoters have reportedly assured that the project when completed would be a game changer in all ramifications. The project is expected to support a strong, sustainable domestic port economy that provides the West African region with the cargo channel of standard draught that allows for super larger vessels call; which will enhance region’s port operations.

Logically, this will raise the competitiveness of Nigeria’s port system in the sub region and beyond, up to the global market place. It is also hoped that with the purposeful  blueprint policy draft currently been designed  by the Minister of Marine and Blue Econony, Adegboyega Oyetola CON, the Badagry Deep Seaport will receive a definitive attnetion; to be or not to be.