ICRC eyes new N180b from projects approved by FEC
By Jeph Ajobaju, Chief Copy Editor
Concessioning of two projects by the Infrastructure Concession Regulatory Commission (ICRC), already by the Federal Executive Council (FEC), is expected to fetch N180 billion revenue for the treasury.
The projects are the Cassava Bio-mass and Bio-ethanol Value Chain (CBBVC) and National Fire Detection And Alarm System (NAFDAS), according to a statement issued by ICRC acting Head of Media and Publicity, Ifeanyi Nwoko.
He explained the concessioning aims 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,” Nwoko enthused.
“The cassava bio-ethanol value chain, which will be done in 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.”
Nwoko said the project would supply organic fertiliser, boosters, conditioners, pre and post-emergent herbicides, pesticides, insecticides, fungicides, and knapsack sprayers.
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Increasing agricultural production
“The project also seeks to double cassava production from the current 62 million tons to an output of no fewer than 120 million tons,” Nwoko said, per Vanguard.
“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.”
The key goal of the cassava-bioethanol pilot project, Nwoko stressed, is 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.”
The project is proposed to be financed with a N11.9 billion grant from the federal government and concessionaire investment, with revenue streams anticipated to include sales of cassava stem, cassava flour, garri, starch, and Bio-ethanol.
“Total revenue for the five-year concession period is N105,610,000,000,” Komolafe added.
He said the NAFDAS project would provide fire mitigation hardware, software, and equipment linked to a cloud network 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.”
Nwoko said NAFDAS would save more lives and properties, 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.”
The project would begin in seven states on pilot basis, before rolling out to all states across the country, according to Nwoko.
He said the total cost of NAFDAS is N3.5 billion and Abuja 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 explained.
The revenue stream includes margin on installations and annual subscription fee from users.
Both the CBBVC and NAFDAS will be executed under the regulatory guidance of the ICRC, with revenue shared between the government and the concessionaire at a ratio decided in the concession agreement, Komolafe added.