Nigeria and China agree on US$629 million Lekki port financing Deal
THE Nigerian State of Lagos has announced it has signed a series of agreements with the China Development Bank (CDB) and the China Harbour Engineering Company (CHEC) to build the Lekki Deep Seaport, 90 kilometres west of Lagos
THE Nigerian State of Lagos has announced it has signed a series of agreements with the China Development Bank (CDB) and the China Harbour Engineering Company (CHEC) to build the Lekki Deep Seaport, 90 kilometres west of Lagos.
The agreement was signed by Lekki Port CEO Navin Nahata, CEO, Lekki Port, CDB deputy general manager Zhang Aijun and CHEC chairman Lin Yiching. reported London's Port Technology International.
The deal will include a US$629 million financing facility and see CHEC assume a 45-year concessionary agreement with Lekki Port Free Trade Zone Enterprise Limited (LPLTZ) to complete Phase 1 of the deep seaport project.
Once completed, the deep seaport would have two container berths of 680-metre long and 16.5-metre alongside. It will also be able to handle 18,000-TEU ships.
After Phase 1, the port will have an annual capacity of 1.2 million TEU, which will increase to 2.5 million TEU once Phase 2 is completed. The Lekki seaport project was initially launched in 2011.
Lekki Port Board chairman Biodun Dabiri said that the development would generate $350 billion in revenue and provide 200,000 jobs.
'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,' he said.
'The project is strategic for the economic growth of Lekki Free Zone, 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,' he said.