• Tuesday, February 27, 2024
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Projects concession to raise N180bn revenue – ICRC

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The Infrastructure Concession Regulatory Commission (ICRC), has said that the approval of the concessioning of its two projects by the Federal Executive Council (FEC) would attract N180 billion revenue to Nigeria.

A statement issued in Abuja on Sunday by Ifeanyi Nwoko, Acting Head, Media and Publicity, ICRC), said the projects included the Cassava Bio-mass and Bio-ethanol Value Chain and National Fire Detection And Alarm System (NAFDAS).

Nwoko said the concessioning was to create wealth, reduce poverty, improve food security and nutrition, provide jobs and renewable energy, and reduce carbon footprint.

“While the NAFDAS project will generate a total of N75 billion in the 15-year concession period, the cassava bio-ethanol value chain will generate a total revenue of N105 billion within the five-year concession period.

“The cassava bio-ethanol value chain, which will be done on a pilot phase, aims to build a Bio-technology Industrial Park on a 20-hectare plot across 20 universities, academia and research and development institutes.

“In the pilot phase, 5,000 special hybrid cassava (TME 419) stems will be planted per hectare, (totalling) 100,000 stems for the 20 hectares,” he said.

In addition, he said the project would supply organic fertiliser, boosters, conditioners, pre and post-emergent herbicides, pesticides, insecticides, fungicides, and knapsack sprayers.

“The project also seeks to double cassava production from the current 62 million tons to an output of no fewer than 120 million tons.

“With improved tropical agro-ecology, bio-technology, intense mechanisation, and effective partnership resource mobilisation, Nigeria can double output to 120 million metric tons in five years,” he said.

Nwoko said the key goal of the cassava-bioethanol pilot project was to demonstrate the efficacy of a private sector-led approach in promoting investment in renewable biomass and creating wealth.

“Also in providing jobs, reducing poverty, improving food security and nutrition, providing renewable energy and reducing carbon footprint,” he said.

Nwoko said the project was proposed to be financed with a grant from the Federal Government and Concessionaire investment totalling N11.9 billion.

The ICRC spokesman said the revenue stream presented by the project includes sales of cassava stem, cassava flour, garri, starch, and Bio-ethanol.

“Total revenue for the five-year concession period is N105,610,000,000,” he said.

He said that the NAFDAS project would provide fire mitigation hardwares, softwares, and equipments that would be linked to a cloud network.

Nwoko said the project would be supervised by the Federal Fire Service through a private entity.

“Through the use of this technology, call, and response time in fire incidents will be automated thus drastically reducing avoidable incidents,” he said.

Nwoko said more lives and properties would be saved, and generally ensure efficient fire prevention, detection and management.

“This means that smoke alarms and other fire detection hardware will be linked to a server which will alert the system when the user is in distress without them having to call for help,” he said.

He said the project would begin in seven states on pilot basis, before rolling it out to all states across the country.

Nwoko said the total cost of the project was N3.5 billion, while the government targets to generate N75 billion within 15 years of the concession.

“Share of revenue to the government was projected as 40 per cent of subscription revenue totaling N17,262,850,871, an average of N1,150,856,724 over the 15 years proposed concession period.”

He added that the revenue stream included margin on installations and annual subscription fee from users.

Nwoko said both projects would be executed under the regulatory guidance of ICRC with the revenue shared between government and the concessionaire at a ratio decided in the concession agreement.