Concession of the Cassava Bio-mass, Bio-ethanol Value Chain and the National Fire Detection & Alarm System (NAFDAS), approved by the Federal Executive Council (FEC) recently, targets among other things, a revenue generation of over N180 billion.
This was disclosed by the Infrastructure Concession Regulatory Commission (ICRC) in a press statement made available to Tribune Online on Saturday in Abuja.
The NAFDAS is for the effective prevention, detection and management of fire across the country, while the concession of the Cassava Bio-mass, Bio-ethanol Value Chain aims to create wealth, provide jobs, reduce poverty, improve food security & nutrition, provide renewable energy and reduce carbon footprint
The ICRC said, “Both projects which are under the regulatory guidance of the Infrastructure Concession Regulatory Commission (ICRC) targets among other things, a revenue generation of over 180 billion naira.
“While the NAFDAS project will generate a total of 75 billion naira in the 15-year concession period, the Cassava Bio-ethanol Value Chain will generate a total revenue of 105 billion within the 5-year concession period”.
It stated that the Cassava Bio-Ethanol Value Chain, which will be done on a pilot phase, aims to build a Bio-technology Industrial Park on a 20-hectare plot across 20 Universities, Academia and Research & Development Institutes.
The project also seeks to double cassava production from the current 62 million tons to output of over 120 million tons with improved tropical agro-ecology, bio-technology, intense mechanisation and effective partnership resource mobilisation, Nigeria can double output to 120 million metric tons in 5 years.
“The key goal of this cassava – Bioethanol pilot project is to demonstrate the efficacy of a private sector led approach in promoting investment in renewable biomass and create wealth, provide jobs, reduce poverty, improve food security & nutrition, provide renewable energy and reduce carbon footprint,” the statement explained.
According to the ICRC, the project is proposed to be financed with a grant from the Federal Government and Concessionaire investment totalling N11.9 billion, while the revenue stream presented by the project includes sales of cassava stem, cassava flour, garri, starch and Bio-ethanol.
Total revenue for the 5 years concession period is N105,610,000,000”, the ICRC further stated.
For the NAFDAS project, it aims to provide fire mitigation hardware, software and equipment that will be linked to a cloud network which will be 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, more life and property saved and generally improve the efficiency in 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 ICRC said the project will begin on a pilot scale with 7 states of the federation before rolling out to all other states across the country.
“The total projected cost for the project is put at N3.5 billion, whereas government targets a revenue generation of N75 billion within the 15-year period of the concession.
“Share of Revenue to government was projected as 40% of subscription revenue totaling N17,262,850,871 (an average of N1,150,856,724 over the 15 years proposed concession period)”, the ICRC explained.
The revenue stream presented by the project includes margin on installations and annual subscription fee from users of the service.
Ifeanyi Nwoko, Ag. Head, Media and Publicity of the ICRC said both projects are to be executed under the regulatory guidance of ICRC and revenue shared between the Federal Government and the concessionaire at a ratio decided in the concession agreement.