Road Infrastructure: FEC Approves Tax Relief Scheme for Private Sector The Federal Executive Council on Thursday approved a tax relief scheme to attract private sector involvement in the provision of Federal road infrastructure across the entire country. The approval was the outcome of a Memorandum for the setting up of a Road Trust Fund (RTF) presented by the Honourable Minister of Finance, Mrs. Kemi Adeosun, to the council at its meeting presided over by President Muhammadu Buhari. The Road Trust Fund concept was jointly developed by the Federal Ministry of Finance and the Federal Ministry of Power, Works and Housing. The RTF is expected to mobilise significant capital into road provision in order to unlock socio-economic development as well as facilitate investment across all areas of Nigeria to achieve inclusive economic growth. Federal roads carry more than 80% of national vehicular and freight traffic, accounting for 17 per cent of the total national road network. Addressing State House correspondents at the end of the FEC meeting, the Finance Minister explained that the RTF would facilitate and incentivise private sector involvement in Nigeria’s Federal road infrastructure. The Minister of Power, Works and Housing, Mr. Babatunde Fashola and Minister of Information and National Orientation, Alhaji Lai Mohammed, were also at the post-FEC briefing of the State Press Corps. Adeosun said, “It is a form of Public Private Partnership that will accelerate the provision of Federal Roads by allowing private sector operators to collectively fund road provision in exchange for tax credits. This will complement Federal Government’s budgetary allocation to roads. “Private sector participation is being incentivised through a Tax Credit Scheme that enables all participating companies to claim tax relief based on the amount of capital contribution (on a pro-rata basis). “We have already consulted with the private sector in the development of the RTF and some companies have already identified roads they wish to reconstruct and are organising their funding. However, this scheme is designed such that Financial Intermediaries will be promoting Road Trust Fund projects and soliciting commitments from interested companies.” Under the tax relief scheme, companies will be allowed to recover 100 per cent of costs incurred on road infrastructure as a tax credit against total tax payable (including up to 10 per cent for cost of funds). Adeosun further noted that the tax relief would allow for cost recovery within a single year instead of three years for economically disadvantaged areas. When completed, the Minister said the roads would be handed over to the Federal Government who may decide to toll the roads in accordance with the National Tolling Policy. On the role of the Federal Ministry of Power Works and Housing, she explained that the ministry would be responsible for approving the road designs, monitoring all approved Road Trust Fund Projects by managing costs and timelines as well as ensuring that equal development across Nigeria by rebalancing the Federal budget, where necessary. She added that all costs and contractors would be scrutinised and approved by the Bureau of Public Procurement in line with legal requirements. “This will ensure that costs are not inflated and that unqualified contractors are not used on the projects,” she stated. ...

Fashola Presides Over Signing Of PPA Between Qua Iboe Power Plant And NBET To Deliver 540MW To National Grid •Says milestone event is consistent with FG’s Roadmap on Power, ERGP •Advocates dedication, patriotism in service as building block of national development •QIPP will utilize Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power”, says Sanusi The Minister of Power Works and Housing, Mr. Babatunde Fashola SAN, Thursday in Abuja presided over the signing of a 540 MW Power Purchase Agreement between the Nigerian Bulk Electricity Trading Plc (NBET) and Qua Iboe Independent Power Plant saying it was consistent with the roadmap of the government on power which is one of the five principal components of the Economic Recovery and Growth Plan (ERGP). In his remarks at the Ministry’s Conference Room venue of the event, Fashola explained that within the responsibility framework of the ERGP, the Ministry of Power, Works and Housing had drawn a roadmap for providing power for the country which, according to him, “is to start with getting incremental energy until we can stabilize; then we go to uninterrupted power”. The Minister said while the Ministry of Petroleum Resources bears the responsibility for the Energy component of the ERGP, his Ministry was saddled with the responsibility of the production and supply of sufficient energy and power for the people of Nigeria, adding, “a process that potentially adds 540 megawatts to our power store fits very well with our incremental power roadmap”. “Within our responsibility framework, we have drawn a roadmap for providing power for this country which is to start with getting incremental energy until we stabilize; then we go to uninterrupted power. That is our journey”, he said. Advocating dedication and patriotism among Nigerians in the service of the country, Fashola said such qualities should be a motivation for national service in or out of government and with or without title adding that with dedication and patriotism, there was a lot one could do to ultimately deliver one’s own share of the national commonwealth to help build prosperity for the people of Nigeria. The Minister commended developers of the plant-Black Rhino Group, Dangote Group, the Nigerian National Petroleum Corporation (NNPC), among others - for demonstrating the aforementioned virtues. He declared, “Well, I think all of the Private Sector partners, Mobil, NNPC, the Ministry of Petroleum Resources, have demonstrated clearly that you don’t need to be in government and you don’t need a title to serve”. He told Nigerian investors, “There is a lot you can do with dedication, patriotism to ultimately deliver your own share of the national commonwealth to help build prosperity for our people”. Fashola thanked the Nigerian Bulk Electricity Trader (NBET), for its efforts in bringing all the parties together to make the signing of the PPA possible adding that the ceremony was important not only because of the presence of the partners but also because the media would be able to share with the members of the public what was involved in delivering the project for the good of the people of Nigeria. The Minister declared, “I think this ceremony is important not just because we are here, but because I hope that those who cover this event will be able to share with the members of the public how much effort, how much team work, how much consensus building, how many people are really involved in order to bring ultimately to the doorsteps of Nigerians this very important commodity that is defining for our development and for our goal”. Thanking, particularly, the NBET Managing Director, Dr. Marilyn Amobi, and the Permanent Secretary, Power, in the Ministry, Engr. Louis Edozien,  for his “very resolute determination in guiding his team and bringing all of them ultimately to safe harbour”, the Minister, however, expressed regrets that the media would not see the behind-the-scene efforts such as “the long distant calls, the emails in the dead of the night, the heated argument over the telephones and the plodding from office to office”, that preceded the event.   He disclosed that at his Ministry’s Monthly Project Review meeting the day before, one of the projects reviewed was the preparation for the construction of the Ikot-Ekpene-Ikot-Abasi Line -which, according to him, the Qua Iboe Plant would depend on adding that the commitment of the Niger Delta Power Holding Company (NDPHC) to deliver on the project was not in doubt. “And we are looking at all the options to get that project back on track”, he said. Urging all the stakeholders to get to work, Fashola declared, “Incidentally and fortuitously, not only will Qua Iboe Power Plant benefit from it, it will also help us release the store of energy that needs to go out to the public from the Ibom Power Plant when all of those lines are finally delivered”. In his remarks earlier, Chairman of Black Rhino Group and Emir of Kano, His Highness Emir Muhammad Sanusi ll, said the project was being jointly developed by his Group, Dangote and the NNPC, following the purchase of the rights to do so from Mobil Producing Nigeria Unlimited adding that the plant would be one of the lowest cost thermal power plants in Nigeria “due to its efficient combined-cycle design and competitive gas price”. Noting the importance of the project to the President and the Vice President, Emir Sanusi, who recalled the persistent follow-ups with the Power, Works and Housing Minister, other Ministers and Agencies concerned, promised that the partners would do everything possible to deliver it to Nigerians on time and schedule, added that in the next few months the partners would inject about $1.2Billion into the project. He declared, “QIPP will utilize Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power”, adding that the plant represented “an example of how the Federal Government of Nigeria and private investors can work together to develop infrastructure that has a real socio-economic impact in our country”. In her remarks also, the Managing Director of NBET, Dr Marilyn Amobi, disclosed that the process took almost two years to get to the signing stage adding that the project started as an alliance between the NNPC and the Joint Venture Partners towards the response to the call by government to pursue investment in the power sector towards the privatization of Nigeria’s Electricity Supply Industry. Commending the Minister’s role in bringing the signing event to fruition, the NBET MD declared, “Hon. Minister, I think it will be very unfair if I fail to acknowledge your doggedness…” she said, adding that he should be applauded for his commitment to the entire process and sector. Also present at the ceremony were the Chairman, Dangote Group, Alhaji Aliko Dangote, the United States Ambassador to Nigeria, Mr Stuart Symington, NNPC COO, Mr Saidu Mohammed, among other dignitaries and top officials from both the private and public sectors.   ...

Fashola calls for support to end Apapa gridlock, port congestions The Minister of Power, Works and Housing, Mr Babatunde Fashola, on Thursday in Lagos called for the collaboration of all stakeholders to tackle traffick gridlock, port congestion and other problems in Apapa and its environs. Fashola made the call at a stakeholders meeting on the ongoing Apapa Wharf Road reconstruction project in Surulere. The stakeholders at the meeting included the three financiers of the project, AG Dangote Construction Company Ltd, Flour Mills of Nigeria Ltd and Nigerian Ports Authority (NPA). Others were National Union of Petroleum and Natural Gas Workers (NUPENG), Association of Maritime Truck Owners (AMATO) and National Association of Road Transport Owners (NARTO), among others. The stakeholders, after extensive deliberations, agreed to resolve issues of logistics and regulation of truckers and port operations. They called on shipping companies to return to the system of using their loading bays and effective call up systems to end port congestions. They also advised AP Molar Multi Terminal (APMT), whose cargo operations take hours to emulate the operations of Port Terminal Multipurpose Ltd (PTML) who have perfected the act of evacuating cargo within minutes. They agreed that emergency interventions should be carried out on the roads around Coconut bus stop area and some other bad portions. They resolved to have another inclusive meeting to carry Shippers, government regulatory agencies and other stakeholders who were absent at the gathering along to evolve permanent solutions, Fashola advised the stakeholders to organise forums where they could proffer solution to the problems and make recommendations to government to speed up solutions on various issues. The minister stressed the need to put other ports in the country to use to reduce pressure on the two major ports in Apapa and promised to work with his transport counterpart, Mr Rotimi Amechi, to involve the rail sector in finding solutions. He called for sacrifice on the part of the various stakeholders as the Yuletide season is approaching to ensure speedy solution to all the problems. “During this period when everybody is sacrificing something, let us sacrifice, it is an exchange, everybody must sacrifice. “This is not about us, it is about everybody,” he told stakeholders. He explained that procurement process for the Oshodi Tin Can Island road was ongoing. Earlier, Fashola had inspected ongoing rehabilitation works at Costain and its environs, which he told journalists was to ensure smooth roads during the festive period. Honorary adviser to the Dangote Group, Mr Joseph Makoju said that Dangote was handling and co-funding the Apapa Wharf Road reconstruction project as part of its Corporate Social Responsibility (CSR). Makoju said that it was painful that the project was being misunderstood by both the public and a section of the media who make negative remarks against the Dangote Group instead of commending it for giving back to society. He explained that the Dangote Group also suffered from the problems of gridlock and other problems caused by port congestions as it affected their businesses and operations as well. He added that the company was ready to tackle all problems that related to the construction raised at the forum and deliver the project within one year. “We give our assurances that we will deliver and we need your understanding,” he said. Mr Ashif Juma, Managing Director AG Dangote Construction Company Ltd, contractors handling the project said that there was massive deployment of men and equipment to site as the rainy season ended adding that by November significant visible progress would be seen in the construction. Juma explained that it was not easy to work on old roads because some unexpected problems usually came up in the midst of the project. He added that the firm was working closely with the Federal Ministry of Power, Works and Housing (FMPW$H) on the project and that work tempo would double in November. “We will work two shifts seven days a week. We cannot do this work without your help,” he told the other stakeholders. The NPA on its part promised to begin enforcement of traffic regulations in port areas which include Oshodi, Babs Aminasaun, Costain and Ijora Olopa road areas, NAN reports that Fashola, on June 17 signed the N4.34 billion Memorandum of Understanding (MOU) for the reconstruction of the four kilometres Apapa Wharf road with AG Dangote Construction Company Ltd and other companies. The project is being funded by AG Dangote Construction Company Ltd, the Nigerian Ports Authority (NPA) and Flour Mills of Nigeria. Source: NAN ...