Parliament on Thursday (11 July 2024)) ratified a Concession Agreement between the Government of the Republic of Sierra Leone and Gento Group of Companies (SL) Limited for the design, financing, construction and operationalization of a seaport within the Dublin and Rickett communities of Banana Island and a Logistics Hub (Harbour Terminal) at Kent in Sierra Leone.
Before ratifying the Agreement the Speaker of Parliament, The Right Honourable Solomon Sengepoh Thomas, praised the various aspects of the seaport project and the immense benefits it would bring to the country.
He said the Agreement was “good for us as a nation”, especially when it was coming from “our own brother Mohamed Gento Kamara”. He noted that, “Whatever profit he makes will stay here [in Sierra Leone],” he said noting further that an Agreement of such nature would impact hugely on the country’s exchange rate earnings. “Togo has a port of 16.6 meters depth and others like Morocco and Ghana have lower depths but Sierra Leone has 22.5meters depth,” he underscored.
The Deputy Speaker, Hon. Ibrahim Tawa Conteh, called on local banks to do the needful and support the project.
Members of Parliament praised the Agreement, describing it as “straightforward” maintaining that it would contribute to the development of the transshipment port project. They assured that they would perform oversight to ensure that the project was well implemented.
Hon. Aaron Aruna Koroma of the All People’s Congress (APC) said it was the first time the country was having a hundred percent ownership of such a massive project. He thanked the CEO of Gento Group of Companies for initiating the project, saying it would write the history of the country.
According to him, Banana Island was selected for bigger ships to transport slaves, stating that it would also be important to have bigger ships for investments and transshipments.
“It will help reduce freight cost and will offer banks 100% proceeds which will help boom the economy,” he asserted adding how it would boost the country’s foreign exchange earnings.
Hon. Dixon Rogers of the ruling Sierra Leone People’s Party (SLPP), Chief Whip of Parliament, said the Agreement was for all Sierra Leoneans. “It will boost tourism potential, maintain the old edifice that is in Banana Island, it will support community development, create businesses and provide US$50,000 annually for community development for the people,” he stated, saying whatever they could do as a Government to support the project they must do.
Hon. Abdul Karim Kamara, the Opposition Whip, pointed out that they had seen a school, community centre, and health centre constructed in the project area before commencement of the project itself.
“We have seen effective community involvement and participation. The company is ours and we should own it as it will empower our people, especially young people. I see economic growth based on this Agreement,” he continued.
Other Members of Parliament made salient contributions on how the seaport project would impact the country positively. They unanimously ratified the Concession Agreement.
Earlier, the Minister of Transport and Aviation, Alhaji Fanday Turay, giving an overview of the seaport project to Members of Parliament pointed out that Speaker Solomon Sengehpoh Thomas recently alluded that Sierra Leone was a virgin ground for investment.
He continued that in confirmation to the Speaker’s statement, the aforementioned Agreement was laid before Parliament on 9 July 2024, adding that it was a project that would not only transform the transportation sector in the country but would also serve as a cornerstone for the nation’s progress.
The Transport and Aviation Minister informed MPs that the Gento Group of Companies intended to undertake the development of a world class port facility in the southern part of Rickett Village, Banana Island, with the support of an international construction firm, Sealand, which specializes in the marine sector.
He disclosed how the proposed seaport would primarily serve as a transshipment hub that was intended to be tapping into the existing transshipment market in the West African sub region and the wider Africa continent.
According to Alhaji Fanday Turay, “Sierra Leone stands at a critical juncture where the demand for an efficient, modern infrastructure is greater”. He said the country’s existing port had served the nation well but pointed out that the increasing volume of trade, advanced marine technology, and the need for enhanced connectivity demand that the nation expand its capability.
The Minister emphasized that the construction of the new port was a necessity in order to keep pace with global standards and to meet the growing need of the populace as well as industries. He disclosed that the seaport was a US$2 billion investment and that it would be in full operations in three years, adding how it would in no way affect operations at the Queen Elizabeth II Quay as it would be specifically focused on transshipment operations.
Pointing out the economic benefits that the new seaport would bring, he stated that it would be a catalyst for economic growth mentioning how the Gento Group of Companies had allocated 10% shares to the Government and would also be paying royalties and other related charges.
He said it would create thousands of jobs during the construction phase and “even permanent positions once it becomes operational”.
According to him, Sierra Leone would become a hub for international trade as the project would attract foreign investments, boost export capability, and reduce the cost of import. He said such would ultimately lead to lower prices of goods and services thereby benefitting the majority.
Alhaji Fanday Turay intimated that the location for the port was strategically selected to maximize efficiency and accessibility, saying that it would be a state of the art facility which would include an expanded parking space, cutting edge security measures and an advanced cargo system. He said such would attract more international shipping lines and logistics companies thereby leading to increased economic activities.
The Transport Minister told MPs that the port had a natural deep water harbour with a water depth of 23 metres making it the deepest port in Africa with an estimated 60 million tons of cargo annually. He said it was essential in transforming the country into a major transshipment hub in Africa, adding how it was expected to generate a profit margin of US$800 million for the first three years of operations.
Alhaji Fanday Turay stated that the overall vision was to create a port that would not only efficient and secure but one that would also be environmentally sustainable incorporating green technologies and practices to minimize its ecological footprints.
He also mentioned that it would be a major source of revenue through the payment of port fees, custom duties, and other charges also connecting to the global trade network. “It is part of a broader strategy to enhance the nation’s connectivity,” he stated furthering how it would positively link the nation to its main trading partners including Guinea, Liberia , Mali, Ghana, Ivory Coast, Nigeria etc and leads to improvement in related infrastructure like roads, railway and ware houses benefitting the broader economy.
Alhaji Fanday Turay argued that in as much as “we want to embrace progress the Gento Group of Companies is equally committed to protect the environment and be supporting communities”. He said a comprehensive Environmental Impact Assessment was undertaken and that measures would be implemented to mitigate hazard effects. “Local communities are to be represented and benefit from the project,” he said.
He concluded by stating that the proposed seaport was more than just a blueprint for infrastructure as it was the vision of President Julius Maada Bio for the nation’s future as “it embodies and encapsulates commitment to growth, progress, and prosperity for all”.
The Minister then asked that the House of Parliament ratify the Concession Agreement.