The China Development Bank (CDB) has signed a $629
million financing facility to accelerate the completion of the Lekki Deep
Seaport project, which started in 2011.
The loan was secured from the Chinese bank after
China Harbour Engineering Company (CHEC), which owns majority shares in the
project, signed a 45-year concessionary agreement with Lekki Port LFTZ
Enterprise Limited (LPLTZ) to complete the Phase 1 of the deep seaport project.
After completion, the deep seaport would have two
container berths of 680-metre long and 16.5-metre water depth. It will also
have the capacity to be berthed by fifth-generation container ships, which has
a capacity of 18,000 TEU ship.
According to the agreement, in 30 months, Nigeria’s
first deep seaport will be delivered in Lekki-a coastal community in the Nigerian
commercial nerve-centre, Lagos State.
The state Governor, Mr. Babajide Sanwo-Olu, who
witnessed the signing of four agreements yesterday, described the development
as “another milestone” for the state in infrastructural development and
commerce, saying the signing of the agreements ended a period of uncertainty
that had trailed the delivery of the project.
He noted that the completion of the project would
invigorate the Lagos economy and push it up in the index of the largest economy
in the world.
According to him, “This is a new beginning for us
in Lagos. We have achieved another milestone in our efforts to transform the state
and accomplish the 21st-century economic ambition. As a government, we are
fully in support of the project. We will do all we can to ensure that the terms
of the agreements signed today are delivered within 30 months as agreed, and we
expect that the outcome would catalyse Lagos as the fifth largest economy and take
it up more in the index among the largest economies in years to come.”
In the coming weeks, the governor said more trade
agreements would be signed with foreign investors, adding that his
administration would continue to explore investments and partnerships that
would accelerate growth and benefit residents of the state.
Chairman of the Lekki Port Board of Director, Mr.
Biodun Dabiri, noted that the development of the seaport was strategic for the
growth of Lekki Free Trade Zone (LFTZ), pointing out that it would make
“immense impact” on the country’s economy by creating more than 200,000 jobs
and generating about $350 billion in revenue for the state over the period of
the concession.
He said: “The loan facility represents a
significant milestone, which when combined with foreign direct investment of
$230 million through equity injection by CHEC, will ensure a successful
delivery of the seaport and reposition Nigeria as the transshipment hub in
sub-Saharan Africa upon the conclusion of the second phase.
“The project is strategic for the economic growth
of Lekki FTZ, as it would support the massive industrial and petrochemical
complex being embarked on in the northern and southern quadrant of the zone
with investment over the next three years peaking at over $20 billion.
“With Lekki airport in view, there will be an
emergence of a harbour city which would be internationally connected by air and
also with world-class integrated transport network of roads, rail and bridges.”
Dabiri said the concessionary agreements had the
support of both the federal and the Lagos State Governments, observing that the
investors agreed with the terms and conditions laid down by the Nigeria Port
Authority (NPA) and Lekki Worldwide Investment.
In his remark, CHEC Chairman, Mr. Lin Yichong, said
the Chinese engineering firm took interest to invest in the deep seaport to
enable Nigeria strengthen its maritime infrastructure and business by building
the first deep seaport that would ease the pressure at Tin Can Island and Apapa
ports.
The Phase 1 of the project, Yichong said, would be
built with an annual handling capacity of 1.2 million TEU, adding that the
capacity would be increased to 2.5 million TEU upon the completion of the
second phase.
According to him, “After the completion of the Lekki port, it
would become the first deep seaport in Nigeria and the container transportation
hub in Africa. It would also release big pressure off Apapa and Tin Can Island
ports. In the course of the construction of the project, it is expected that a
huge number of employment opportunities would be generated for residents of the
state.”
CDB Deputy General Manager, Mr. Zhang Aijun, said
the bank approved the loan facility, given the strategic importance of the
project to Lagos economic growth.
He said the bank considered the investment as a basis
for expanding its business in Nigerian and contributing to the development of
the country.
Managing Director of Tolaram Group in Africa, Mr.
Haresh Aswani, on his own, hailed Lagos State Government for supporting the
project since the beginning, adding that the completion of the deep seaport
would change the narrative of foreign partnerships with the government of
Nigeria.
The highpoint was the signing of the four
agreements, which was witnessed by the Oba of Lagos, Rilwan Akiolu; Consul-General
of the Chinese Embassy in Lagos, Mr. Chu Maoming, and representatives of key
stakeholders in the project.
Other agreements signed by the CDB, CHEC, and LPLEL were
Completion Agreement, Sponsor Support Agreement and Tripartite Keep-Well
Agreement.
No comments:
Post a Comment