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Federal Government okays N216b for Lekki Deep Sea Port project

By on December 5, 2013

The Federal Executive Council (FEC) yesterday approved the N216billion ($1.354billion) Lekki Deep Sea port in Lagos–Nigeria’s first ever.

The Minister of Information and Supervising Minister of Defence, Labaran Maku and the Minister of Transport Idris Umar broke the news to State House correspondents at the end of the FEC meeting presided over by Vice President Namadi Sambo.

The Lekki Deep Sea port, which has been on the drawing board for several years with anticipatory approval received about 10 years ago, will now be completed in the next four years.

Its completion will end the congestion at the various ports in the country, including the Apapa Port.

Maku said: “The current administration, seeing the huge benefit of the project, had taken over the project to be executed under a PPP (public private partnership) arrangement, while (the) Federal Government also renegotiated the concessionary period in favour of Nigeria from 50 down to 45 years.”

The Federal Government, he said, is expected to contribute 20 per cent equity on the port designed to handle the largest vessels in the world. Lagos State Government is to contribute 18.5 percent. Private investors are contributing 61.85 per cent.

Designed to handle four million tonnes of cargoes, the port is expected to cover a land area of 90 hectres with provision for expansion, 6 kilometres and the width of the channel leading to the port is put at 200 metres to be dredged to a depth of 17.5 metres. It will have a width of 300 metres, making it the deepest in West Africa.

The Nigerian Ports Authority (NPA) is expected to reap over $9.3billion, made up of $2.6 billion from marine services and royalty and $6.7billion from share of profits from the investments.

Umar said the port will create over 162, 000 jobs and help to facilitate decongestion at the various ports built initially to handle 60,000 tonnes, but which are now handling over 100,000 tonnes.

He said: “The project, upon completion, will generate $379 billion and the fact is that the port will play a vital role in the economy.

“After deliberations, Council approved the project in favour of Messrs Lekki Ports LFTZ Enterprise (the project’s proponents) at an estimated cost of $1,354, 500,000.00 under the concession agreement dated 21st April, 2011.

“Council approved the issuance of a guarantee to cover financial obligation of the NPA to pay compensation in the event of expropriation, war, civil disturbance, breach of contract and other event of default as per the concession agreement for the development of the port, as $800,000,000 out of the project cost is to be funded through debt financing while the balance of $554,500, 000.00 is to be contributed by equity.”

The Minister of State for Works, Bashir Yuguda, said the Federal Government also approved the award of road contracts at the cost of N30.059 billion.



[The Nation]