The developers of Nigeria’s proposed Calabar deep sea port have reportedly risen €500m (US$553.3m) in financing for the project with dredging activities at the site now underway.
According to the developers Broad Spectrum Industries Services (BSIS), Managing Director and Chief Executive Officer (CEO), Michael Havre, the investment consortium behind the project, the Calabar Deep Seaport will be done under the Public Private Partnership (PPP) which requires a 25% bank guarantee issued by the state government since the funds do not represent a loan neither does it represent a grant for its purely a project financing fund. A Nigerian bank has agreed to consider the possibility of issuing a guarantee on behalf of Cross River State.
Governor of Cross River State, Senator Ben Ayade also clarified that the €500m was not a loan, just as he maintained that Cross River State was not going to incur any debts arising from the funding of the signature projects.
The deep seaport which construction is about to begin is at Ikang near Bakassi is designed to have a minimum draught of 10 metres in order to accept the larger modern vessels and attract economic growth to the South Eastern state of Cross River.
Dredging is being carried out by Calabar Channel Management Limited (CCM) a Special Purpose Vehicle (SPV) led by the Nigerian Ports Authority (NPA) and comprising a consortium of Niger Global Engineering & Technical Company Limited, Royal Boskalis and Westminster Dredging.
The Port of Calabar has seen growing demand from the country’s oil and gas industry as increasing volumes of petroleum imports and exports transit via the port. The government has also established the Calabar Free Trade Zone (CFTZ) to attract further investment via duty waivers and other incentives.
Authorities are actively seeking further investment to the site with around 160 hectares of land already set aside for new port development investors.