Sandust Tincan Water Project

Background

Project Background

Background

Sandust Tincan Water Project

Tincan Island Port located north-west of Lagos port complex and is the second busiest in Nigeria after Lagos Port Complex. Tincan island port (TCIP) is located in Apapa, seven kilometers due west of the center of Lagos across Lagos Harbor. It has become a haven for investors due to its unique features including water supply and bunkering. The port handles diversified cargoes with each terminal operator specializing in different forms of cargo. The port handles vessels ranging from 100m – 260m and can handle ships of about 30,000tonnes.

Ports are catalysts for economic development as they enable trade and support supply chains. Port investments have economic benefits that can be direct, indirect, or induced. In today’s global commerce, maritime transport plays an important role in being many nations’ major gateway for international trade. It is a good instrument for measuring the economic health of a nation. The ports have considerable influence on the volume and conditions of trade and the capacity for the economic development of developing nations. The efficient movement of goods is crucial to economic growth. In developing countries, the lack of proper infrastructure, including ports, can mean the difference between sustainable progress and persistent under-development. In Nigeria, a greater percentage of international trade is routed through the sea due to the country’s huge population. Hence, the country’s ports are increasingly challenged to meet the pressure mounted by the movement of ships and cargo in and out of the ports.

 The supply of adequate fresh water is critical to port operations due to the various use of this water at the port for vessels at berth, midstream or offshore, as well as for other important purposes at the port and onboard the vessels. Therefore, the importance of a functional and efficient water treatment plant and ancillary infrastructure that will facilitate the seamless supply and distribution of water at the port cannot be overemphasized.

Considering the current dilapidated state of the water treatment plant at Tincan Island Port (TCIP), there is a need for private partner participation to address the financing and  managerial gap to actualise this project. Â

An unsolicited Outline Business Case (OBC) proposal for the water system’s refurbishment, operation and maintenance was submitted by Sandust Engineering and its partner, CAKASA Engineering Limited Service (CESL), to the NPA in May 2022. The proposal was transmitted to the Infrastructure Concession and Regulatory Commission (ICRC) for review and approval. Subsequently, the ICRC issued a Certificate of Compliance for the Business Case in May 2022. Sandust tincan water project is a 16 year concession for the water supply system at Tincan Island Ports Complex granted by the Nigerian Port Authority.

Objectives

  1. Ameliorate the capacity of water supply and distribution at Tincan Port. Â
  2. Improve the volume of the water treatment plants from 70 to 150 cubic meters per hour.
  3. Achieve consistent fresh water supply to vessels at berth, midstream, local offshore and for local consumption by businesses within the port.
  4. Further improve the quality of port services and efficiency.
  5. Improve revenue generation for the NPA.
  6. Generate employment opportunities for Nigerians.
  7. Enhance technology transfer.

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Key parties to the concession

  1. Federal Government Of Nigeria (FGN)
  2. Federal Ministry Of Transportation
  3. Nigerian Ports Authority (NPA)
  4. Infrastructure Concession Regulatory Commission (ICRC)
  5. Ministry Of Finance