A Review of the Nigerian Energy Industry

CVFF: Six indigenous firms request N21.288billion for vessel acquisition

Cabotage-vessel-at-Ibafon-jetty16 October 2013, Abuja –  applicants to the Cabotage Vessel Financing Fund, CVFF, await presidential approval for  disbursement, six indigenous shipping firms  have requested a total of the N21.288 million to acquire various sizes and model of vessel.

A breakdown of the figure shows that Stazs investment Company requested for N3.566billion as against the N3.874billion requested by Aquashiled oil and marine services limited.

Nkrah investment requested for N5.482billion as against the N3.44billion requested by Zomay marine and logistics limited.

For UTM dredging and Seabulk Off-shore Operating Nigeria limited, N960million and N4billion were requested respectively.

This was contained in a presentation made by the Minister of Transport, Senator Idris Umar during an investigative hearing on the CVFF by an Ad-hoc Committee constituted by the House of Representatives last week in Abuja.

In the presentation, the Minister said that the four Primary Lending Institutions (PLIs) have also recommended that the requested amount be given to the applicants for the purposes stated.

In the presentation, it was stated that the four PLIs namely Diamond Bank, Fidelity Bank, Skye Bank and Sterling Bank will participate in the disbursement of the fund to the various applicants.

A further breakdown also showed that Diamond will disburse the highest amount of the Fund as both Stazs and Seabulk will be receiving a total of N7.566billion to part finance the acquisition of one Platform Supply Vessel, PSV, and to finance the construction/purchase of one new 90 ton Damen Azimuth Atem Drive Tug 5113.

For UTM dredging and Zomay Marine and logistics, Sterling Bank will disburse N4.4billion for also the part financing of the acquisition of three new vessels and the procurement of an Anchor Handling Tug Vessel for Vessel hiring services to NAOC.

The N5.482 billion requested by Nkrah is meant to finance acquisition of a Platform Support Vessel and Anchor Handling Tug Boats named MV Vega Progress and MV Varada Queen, while Aquashield will use its N3.566 billion for the acquisition of PSV Dynamic Position Vessel, MV Mariner Sea.

The Minister also said that the requests along with their application have been evaluated as further due diligence is on-going to ascertain that the Funds are disbursed to the bonafide beneficiaries.
*Godwin Oritse.

In this article

Join the Conversation