- As FPSO Set to Arrive Nigeria in August
- FEC approves $188.807m, N8.576bn for road, power, port projects
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside has indicated that the on-going construction of multi-billion dollar Egina Floating Production Storage and Offloading (FPSO) project would increase the agency’s knowledge base, as a safety Administration and regulatory agency.
The Director General made this known during a meeting with the Executive Vice President of Samsung, Mr Younsang Won, Representatives of Total Nigeria and the Vice President in charge of Egina project, Yongho Jo, while on a working visit to inspect the project at the Samsung Shipyard in the Samsung Heavy Industries in Geoje, South Korea, noting that the project which is unprecedented in the history of Nigeria would equally increase NIMASA’s regulatory capacity and competence, asides from ultimately fetching Nigeria the much needed foreign exchange.
“This project is the first of its kind in Nigeria, it will increase our knowledge base of inspection techniques, certification and rules for maintaining classification and ultimately benefit the Nigerian economy in terms of foreign exchange”, highlighted Dr Peterside, assuring the Total and other prospective investors that the Agency would continue to guarantee a conducive environment for investors to become more and more confident to come up with projects of this nature.
“This is a mega offshore project that will bring out the best in us, let me assure you that we will discharge our responsibility as the facilitator of maritime business in Nigeria and ensure that our maritime domain remains safe and secure for this kind of projects, we will give both Samsung and Total Nigeria necessary support to actualize the Egina FPSO project for the interest of Nigeria and Nigerians” , Dakuku Peterside also said.
The agency boss commended Samsung and Total Oil for having faith in Nigeria and its effort to comply with Nigerian content law.
He particularly lauded Samsung for having NIMASA Surveyors on ground at South Korea to work with world class classification societies on the project which will make certification and passage of the project easier and faster; even as he charged the Executive Vice President of Samsung to ensure compliance to the Cabotage law and other enabling Nigerian laws when the FPSO gets to Nigeria, more so, as the Nigerian government is working hard to provide conducive business environment.
In his response Mr Younsang Won promised the visiting NIMASA boss that the project would be ready for movement to Nigeria in August and assured that the quality of the project would bear the mark of excellence associated with Samsung Heavy industries.
He promised to comply with local laws in Nigeria and do all within his powers to work with locals to build capacity in offshore projects industry.
It be noted that the FPSO is being developed for deployment in the Egina oil field, located 150km off the coast of Nigeria. The field is currently under development and production is scheduled to begin in 2018. The Egina Field when completed is expected to add 200,000 barrels per day to the National oil production by 2018.
It should also be noted that as part of the current reforms going on in the Nigerian Maritime sector, NIMASA would be taking delivery of the 5th largest floating dock which is expected to ensure vessels in need of dry dock need not go out of the country.
In the meantime, the Federal Executive Council (FEC) yesterday approved $188.807 million and N8.576 billion for some road, power and port projects.
The approvals included reimbursement of N7.943 billion to Kwara State for construction of Kayamakishe road.
Afam Power Plant was approved for $186.6 million.
The contract for the substation of the Afam plant is $2.207 million for the offshore components and N133.184 million for the local components.
The council also approved N500 million for completion of Baro River Port.
Briefing State House correspondents at the end of the meeting, the Minister of Power, Works and Housing, Babatunde Fashola, said for the road project, Kwara applied to be allowed to construct the road and be refunded in the future.
He was with Minister of Finance Mrs Kemi Adeosun, Minister of Transportation Rotimi Amaechi and Minister of Information Lai Mohammed.
He said: “FEC gave approval for the reimbursement of Kwara State government to undertake the construction of the Kayamakishe road which is a road that serves the Agricultural belt that produces Agro Product between Oyo and Kwara state.
“So Kwara State has applied to be allowed to take that road on the basis that they will be refunded at sometime in the future. We have actually received anticipatory approval from Mr. President and Council has ratified that approval for them to continue. The road contract is N7.943billion
“The other one is consistent with infrastructure development in the country is the memo for the Afam emergency fast power which is part of the ministry’s roadmap for incremental power to the grid. Council ratified the earlier approval given for GE to undertake that project so that we can complete 240megawatt (Mw) of emergency power through 830Mw turbines this year.
“Council also approved the contract for the construction and rehabilitation of the sub-station to enable the evacuation of the power, once the turbines are installed. The total package for the Afam power plant is $186.6million and the contract for the substation is $2.207 million for the components that are offshore and N133.184 million for the local components.” he said
Mrs Adeosun said the Council gave the Ministry permission to sign a multilateral convention to implement tax treaty related matters to prevent base erosion and profit shifting.
She said:“In simple language, this administration is very focused on revenue generation and mobilisation and part of that work is to improve our tax collection.
“One of the means by which major companies evade is a practice called base erosion and profit shifting which means that the profit that was made in Nigeria using accounting methods shift it to a country that has little or no tax.
“So really the country in which profit was generated doesn’t get tax, they go and declare those profits in a country that has very low tax.
“There is a contact among the G20 countries and the OECD to end this and Nigeria was part of those who negotiated this convention and today Council gave us permission to go and sign the conventions.
“What that convention would mean is that where we have existing bilateral tax treaties, like Nigeria already has some tax treaties with certain countries which actually are not in our favour and I gave example to Council. For example we sign a treaty with a particular country that says their national carrier will not pay tax in Nigeria and in exchange Nigeria’s national carrier will not pay tax in their country but as you know Nigeria does not have a national carrier, so that type of arrangement is adverse to Nigeria.
Additional report from Citizen