TheCable

The Nigerian Ports Authority has refuted allegation of wrongdoing on the decommissioning of terminal B, operated by BUA Ports and Terminal in Rivers state. 

In a statement issued on Tuesday, the agency described the allegation as “an attempt to blackmail, intimidate and prevent the authority from performing its regulatory oversight.”

It said the action was taken for security reasons and that BUA Ports reneged on the concession agreement.

“The Terminal was handed over to them for use with effect from August 10, 2006,” the statement read.

“As part of the terms of agreement for the concession, BUA Ports and Terminal Limited was required to commence full reconstruction of berths 5-8 within 90 DAYS of hand over of the facility.

“As of February 2016, TEN YEARS after the handover, the company had failed to commence the reconstruction as required by the agreement. The Authority then issued a letter drawing their attention to this non-compliance.”

NPA said despite receiving the letter, the company refused to honour the” fundamental and material term” of the lease agreement.

“Consequent to the above, the Authority served a default notice dated February 11, 2016 and another one dated July 27, 2016 on the Terminal operator,” NPA said.

“The letter reminded that the non-compliance, which led to the deterioration of the berths 5-7 and the total collapse of berth 8 constitutes a breach of the concession agreement and a threat to the safety of lives around the terminal.”

The NPA said it later issued a three-month termination notice to the company on November 11, 2016.

“On receipt of the notice of termination, BUA Ports and Terminal sought and obtained a restraining order from the Federal High Court, Lagos on January 18, 2018 barring the Authority from giving effect to the termination,” it said.

“In compliance with the restraining order of the Federal High Court, the Authority, thereafter allowed BUA Ports and Terminal Limited full access to the premise for peaceful operation, without any interference whatsoever.

NPA, however, said it received a letter from BUA Ports informing it of the dilapidated state of the berth in May.

“The Authority found the state of the jetty as described by BUA Ports and Terminals Limited themselves as very risky, posing a safety hazard to all users in the Terminal and demanding of urgent attention,” it said.

“As a result, the Authority found it necessary to decommission the terminal out of safety concerns.

“The Authority, as a responsible regulator having received that alarming letter on the state of the jetty by the operators was compelled to act in the manner it did to safeguard infrastructure at the Rivers Port and the ensure the safety of its users.”

Editor’s note: This picture was used fir illustrative purposes