Business AfDB Approves $150m Loan to Nigeria for Creation of Lekki Port in Lagos



The board of directors of African Development Bank Group (AfDB) has approved a total of $256 million for the financing of investments in Nigeria and Ethiopia.

This comprises a $150 million senior loan to Lekki Port Lagos Free Trade Zone (LFTZ) Enterprise for the construction of a Greenfield seaport in the LFTZ. The loan for the LFTZ project, followed a 45-year concession granted to Lekki Port LFTZ Enterprise (LPLE), the special purpose vehicle of the Nigerian Ports Authority (NPA) under a build, own, operate and transfer scheme.

According to a statement AfDB’s website yesterday, the loan was also to be used for the construction of port infrastructure such as breakwaters, quays, approach channels, dredging of the basin as well as captive utilities such as water and power.

In Nigeria, on completion, the port would handle 2.5 million 20-foot equivalent units (TEUs), 16.7 million tonnes (MT) of liquid cargo and 4.5 MT of dry bulk. Construction is expected to start in January 2015 with the container terminal operations expected to start in December 2018.

The project, estimated at $1.675 billion, would be financed through a 54/46 debt to equity ratio, THISDAY reports.

“The project is also in line with the Bank’s Regional Integration Strategy Paper (RISP) for West Africa which emphasises linking regional markets through regional transport infrastructure,” it explained.

#Nigeria #AfDB #Africa #Ethiopia #Lagos #Lekki


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