The Lagos State Government has signed a $629 million facility with the China Development Bank (CDB) for the completion of Lekki Deep Seaport Project.
The project is part of the grand plan of the state to reduce congestion and complement the capacities of the existing ports in Apapa and Tin Can Island
The $629 million facility was gotten from the Chinese bank after the signing of a 45-year concessionary agreement with Lekki Port LFTZ Enterprise Limited and China Harbour Engineering Company (CHEC), which owns majority shares in the project.
The CHEC had signed a 45-year concessionary agreement with Lekki Port LFTZ Enterprise Limited (LPLTZ) to complete the first phase of the deep seaport project.
The Deep seaport has 680-meter container berths with a depth of 16.5 meters.
It will be capable of handling ships with a capacity of up to 18,000 TEU.
“The loan facility represents a significant milestone, which when combined with foreign direct investment of S230 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,” Biodun Dabiri, Chairman of Lekki Port Board of Directors, commented, according to World Maritime News.
CHEC Chairman Lin Yichong said that the first phase of the project 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.
The Lagos State Governor Babajide Sanwo-Olu witnessed the signing of four agreements.
In a statement, the Lagos State Governor, Babajide Sanwo-Olu said that the credit facility would quicken the completion of the project which started in 2011 and that with its completion, the Lagos economy would be pushed up in the index of largest economies in the world.
”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 economy ambition. As a government, we are fully in support of the project.
We will do all we can to ensure the terms of the agreements signed today are delivered within 30 months as agreed. We expect the outcome would catalyse Lagos’ fifth-largest economy and take it up more in the index of largest economies in years to come.”
