2010 Mar 12

Abandoned NIPP containers threaten 6,000mw target

Contractors handling the National Integrated Power Project (NIPP) may have to pay as much as N4 billion to take delivery of about 2,000 containers abandoned at various ports and terminals in the country over the past two years. The containers which are laden with equipment for Federal Government’s power plants were shipped in from Europe and some Asian countries about two years ago to boost power generation to over 6,000 mega watts by the end of 2010.

Although the power equipment do not attract any customs duty, BusinessDay gathered that they were abandoned at the ports since being offloaded from ships some two years ago at the various ports and terminals. Only shipping, terminal and handling charges are payable on the consignments.

Reasons adduced for the abandonment range from the inability of the contractors to raise the required funds, delays precipitated by due process and bureaucratic bottleneck in the ministries and agencies associated with the NIPP projects.

Speaking anonymously to BusinessDay, one of the clearing agents facilitating the delivery of the equipment said he had been able to take delivery of 18 containers and has another 41 to clear at the ports, stressing that each of the containers had attracted demurrage and rent of about N2 million or more. He regretted that some of the containers have been transferred to Ikorodu Lighter Terminal as overtime cargo. However, they will not be auctioned as they are Federal Government property.

The agent, who refused to name the contractor, pointed out that another impediment hindering the clearance of the consignments is that contracts were given to friends and family members who could not raise enough money to clear the goods on behalf of the contractors because of the length of time the goods had stayed at the ports and terminals.

Reacting, one of the terminal operators at the Tin Can Island Port, said because the containers belong to government, they have to treat them with care, explaining that the boxes were taking larger chunk of the limited space at the port.

According to the terminal operator, the absence of the President Umaru Yar’Adua has contributed to the snail speed with which the consignments were being taken from the ports. “Some of the contractors have relaxed and will need the prodding of Acting President Goodluck Jonathan to revive the projects again. It is unfortunate that we are loosing money because port business is all about taking in and discharging them as quickly as possible”, the terminal operators stated.

Moreover, the terminal operators advised that government should set up an investigation committee to probe into the matter to know why the consignments have stayed at the ports for such a period of time.

The public relations officer of the Nigeria Customs Service, Tin Can Island Port, Chris Osunkwo, said the containers came in phases, stressing that government had written to the Nigeria Customs Service concerning the consignments, which they were ready to release at anytime.

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