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AfDB, Others To Finance N1.5 Billion Lekki Port Project

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Managing Director of Lekki Port,

Managing Director of Lekki Port, Haresh Aswani,

Six banks, including the African Delelopment Bank (AfDB), have sealed pact with a Singaporean firm, Tolaram Group, to finance the proposed $1.5 billion port project at Lekki area of Lagos. The construction of the port has been scheduled to commence next month, after it had been shifted a number of times.

Other banks to work in the port project are: African Finance Corporation (AFC); European Investment Bank (EIB); Standard Chattered Bank; Rand Merchant Bank (RMB) and Standard Bank.

Giving update on the $1.5Billion project in Lagos, Friday, Managing Director of Lekki Port, Haresh Aswani, disclosed that the company has sealed a funding arrangement with six financial institutions, adding that the construction works would be handled by China Harbour Engineering Company
Describing the proposed port as a “game changer,” because of its multiplier effect on the economy, he said his company was already discussing with the Lagos State Government for the provision of road network needed to facilitate evacuation of goods from the port.

The Managing Director of the Nigerian Ports Authority (NPA), Habib Abdullahi, who witnessed the financing agreement between the parties, reiterated the commitment of the federal government to provide all necessary support towards to completion of the project.
He put Nigeria’s financial commitment to the project through NPA, at $118million, pointing out that N1Billion was paid in 2014, while provision has been made for the 2015 budget estimate presently in the National Assembly.

Already, NPA has concluded its due diligence on the project through an auditor to ensure accountability and transparency.
When completed, the port will handle 2.5 million 20-foot equivalent units (TEUs), 16.7 million tonnes (MT) of liquid cargo and 4.5 MT of dry bulk. The proposed deep seaport has capacity for containers, liquid and bulk terminals, 150million quay, and 14 million draughts among others.
The deep seaport is a $1.5 billion public private partnership project between the Federal Government (represented by the Nigerian Ports Authority), the Lagos State Government and the Tolaram Group.

The proposed port, which is expected to create about 250,000 direct jobs, is located in the Lagos Free Trade Zone at the Lekki corridor.
Also, the deep seaport, which will be located 65km east of Lagos Mainland, is expected to become the gateway to West.



1 Comment
  • emmanuel kalu

    why does every major contract by nigeria goes to the chinese. their quality of work and product are very much in question and they are not willing to build capacity or train nigeria. did this contract awarding, first look at nigeria companies to build this project. if no nigeria company, how about african company, then american or EU companies. if we are to increase capacity and develop our local content, there has to be a major push toward awarding this kind of contract to nigerian’s. if not, a majority of the smaller aspect of this contract should be given to nigerian companies and the raw materials locally sourced.