China Development Bank finances Nigeria's Lekki deep sea port
SINGAPORE-based developer Tolaram Group and state-owned construction firm China Harbour Engineering Company (CHEC) have inked a US$630 million financing agreement with state-owned China Development Bank
SINGAPORE-based developer Tolaram Group and state-owned construction firm China Harbour Engineering Company (CHEC) have inked a US$630 million financing agreement with state-owned China Development Bank. The funds will be used to finance the construction of Lagos' future Lekki deep sea port in Nigeria.
The future Lekki port will have a water depth of 16.5 metres and two berths of 680 metres in length each. It will be able to accommodate containerships of up to 18,000 TEU. Phase one capacity will be 1.2 million TEU per annum, expanding to 2.5 million TEU in phase two.
The extra space is expected to take pressure off of Lagos' beleaguered Tin Can Island and Apapa ports, which face chronic congestion and access road traffic, reported The Maritime Executive, Fort Lauderdale, Florida.
Lekki port board chairman Biodun Dabiri said the new port facility that is expected to commence operations in mid-2022 and the adjacent Lekki free trade zone would directly or indirectly create 200,000 jobs and generate billions in revenue for Lagos state.
In addition to the funding from China Development Bank, CHEC has committed to an equity investment of $470 million. After the port's completion, CHEC will operate the facility under a 45-year concession agreement. The project marks Singaporean processed food company Tolaram Group's first foray into the world of infrastructure development, and it will hold a 22.5 per cent ownership stake.
Preparatory work for the Lekki port project has already started, with workers engaged in making precast concrete blocks for the harbour's breakwaters.