NPA empowers STWP to provide water at Tin-Can Ports at N11 billion

…As firm assures to supply 100cmh fresh water

The Nigerian Ports Authority (NPA), an agency of the federal government of Nigeria has formally empowered Sandust Tincan Water Project Limited(STWP) to provide water at the Tin Can Island Port.

This follows a recently signed 16-year concession agreement with the firm, valued at N11 billion.

NPA revealed that it has entered into 16 years concession agreement valued N11 billion with concessionaire STWP Limited.

Part of the agreement stated that Sandust a Nigerian owned Special Purpose Vehicle (SPV) will spend the first year rebuilding and rehabilitating the facility. The agreement is set to officially commence September 1, 2025.

Speaking at the handover ceremony at the Tin Can Island Port Complex on Monday, NPA’s Managing Director, Dr. Abubakar Dantsoho, represented by Assistant General Manager Mukhtar Isah, explained the necessity behind the concession agreement was that many of the port’s water treatment plants have been inoperative for decades.

Dr. Dantsoho noted, “Allowing the facilities to remain idle without any value addition means the NPA and the government would continue to lose significant revenue.” He added that there is a high demand for fresh water by vessels visiting Nigerian waters, which are currently being supplied by external parties.

“The NPA has capitalized on the national policy on public-private partnerships to structure this concession as a management contract, outsourcing an operator to manage and maintain the plant for efficiency,” he said.

One of the machines at STWP site Apapa

The concession process received approval from the Infrastructure Concession Regulatory Commission and the Federal Executive Council, securing a 16-years agreement. “Now, there are obligations on both the concessionaires and the government. The concessionaire has fulfilled all its conditions, leading us to approve today as the effective date of the concession agreement,” Dantsoho stated.

Part of the responsibilities of the concessionaire includes transforming, rehabilitating, and maintaining the water treatment plant, as well as bringing in more equipment to produce water for sale to vessels, thereby generating revenue in dollars.

The NPA, on its part, is committed to providing a conducive environment for the operators. “A level playing field means that government policies should favor operators, not only in Tin Can but also in Apapa Port. The government, through the NPA should be able to provide all necessary support to the concessionaires,” Dr. Dantsoho added.

He expressed optimism that, once the concession is fully operational, there would be an increase in vessel traffic. “Some may even come just for water, and this means the government will earn substantial revenue,” he noted.

Earlier, Mrs. Angela Attah, Managing Director and Chief Executive Officer of Sandust Tincan Water Project Limited, emphasized the significant investment the company is making in the project, which is valued at N11 billion. She stated that the company aims to produce 100 cubic meters of water per hour.

“The concession is a 16-year agreement between the Nigerian Ports Authority and Sandust Tincan Water Project Limited. The project cost is currently about N11 billion, some of which will come through equity. We are in discussions with various financing parties,” said Attah.

While Attah acknowledged ongoing discussions with financial bodies such as the IFC and Stanbic Infrastructure Fund, she noted that no agreements had been finalized yet. “We are in advanced talks with them, and their presence here shows their interest.”

She pointed out that the NPA is obligated to supply water to all visiting vessels and port users, a commitment that has not been met for over 18 years due to the inactivity of the water plant.

Attah further explained the significance of the partnership in ensuring the supply of clean water to vessels and other users at the port. “The reason we have independent black market suppliers is because the NPA has not met its obligations, despite a clear demand. Local suppliers have been using barges to bring untreated water, but there is a need for treated, fresh, and potable water,” she said.

She added that while independent suppliers have met a market need by providing untreated water, the requirement for vessels is treated water, and there would continue to be a demand for quality water. “As we begin operations, we will engage with the current suppliers to see how we can collaborate. If they wish to purchase water from us, that will also be an option,” Attah concluded.

STWP was formed in 2022 as a full-service provider of treated / portable water for the Tincan Island Port Complex in Apapa, Lagos State.

With an overall objectives aimed at modernizing the water supply system at the Port to provide uninterrupted supply of, Portable water to ships and vessels at berth, midstream and offshore.

Part of the agreement is for STWP is to supply treated water to third party users and fresh water to vessels and the port hydrant systems for emergencies purposes.

The Company will undertake its services under a Public Private Partnership(PPP).