The Federal Government has handed over the water system facilities at the Tin Can Island Port to Sandust Tincan Water Project Limited, marking the commencement of a 16-year concession agreement valued at N11 billion.
The handover, facilitated by the Nigerian Ports Authority, NPA, represents a significant step in the government’s ongoing efforts to modernize and improve infrastructure at one of the country’s busiest ports.
The NPA disclosed that the concessionaire, Sandust Tincan Water Project Limited, will spend the first year rebuilding and rehabilitating the facility. The concession agreement is set to officially commence on September 1, 2025.
NPA’s Managing Director, Dr. Abubakar Dantsoho represented by Assistant General Manager Mukhtar Isah at the handover ceremony explained the necessity behind the concession agreement. He highlighted that many of the port’s water treatment plants have been inoperative for decades.
He said: “Allowing the facilities to remain idle without any value addition means the NPA and the government would continue to lose significant revenue.”
He added that there is a high demand for fresh water by vessels visiting Nigerian waters, which are currently being supplied by external parties.
“The NPA has capitalized on the national policy on public-private partnerships to structure this concession as a management contract, outsourcing an operator to manage and maintain the plant for efficiency,” he said.
The concession process received approval from the Infrastructure Concession Regulatory Commission and the Federal Executive Council, securing a 16-year agreement.
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“Now, there are obligations on both the concessionaires and the government. The concessionaire has fulfilled all its conditions, leading us to approve today as the effective date of the concession agreement,” Dantsoho stated.
Part of the responsibilities of the concessionaire includes transforming, rehabilitating, and maintaining the water treatment plant, as well as bringing in more equipment to produce water for sale to vessels, thereby generating revenue in dollars.
The NPA, on its part, is committed to providing a conducive environment for the operators.
“A level playing field means that government policies should favor operators, not only in Tin Can but also in Apapa Port. The government, through the NPA, should be able to provide all necessary support to the concessionaires,” Dr. Dantsoho added.
He expressed optimism that once the concession is fully operational, there would be an increase in vessel traffic. “Some may even come just for water, and this means the government will earn substantial revenue,” he noted.
Mrs. Angela Attah, Managing Director and Chief Executive Officer of Sandust Tincan Water Project Limited emphasized on the significant investment the company is making in the project, which is valued at N11 billion. She noted that the company aims to produce 100 cubic meters of water per hour.
“The concession is a 16-year agreement between the Nigerian Ports Authority and Sandust Tincan Water Project Limited. The project cost is currently about N11 billion, some of which will come through equity. We are in discussions with various financing parties,” said Attah.
While Attah acknowledged ongoing discussions with financial bodies such as the IFC and Stanbic Infrastructure Fund, she noted that no agreements had been finalized yet, saying “we are in advanced talks with them, and their presence here shows their interest.”
She pointed out that the NPA is obligated to supply water to all visiting vessels and port users, a commitment that has not been met for over 18 years due to the inactivity of the water plant.
Attah further explained the significance of the partnership in ensuring the supply of clean water to vessels and other users at the port.
“The reason we have independent black market suppliers is because the NPA has not met its obligations, despite a clear demand. Local suppliers have been using barges to bring untreated water, but there is a need for treated, fresh, and potable water,” she said.
She added that while independent suppliers have met a market need by providing untreated water, the requirement for vessels is treated water, and there would continue to be a demand for quality water. “As we begin operations, we will engage with the current suppliers to see how we can collaborate. If they wish to purchase water from us, that will also be an option,” Attah added.
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