$1.5bn Lekki deep seaport project suffers setback

<div dir="ltr" style="text-align: left;" trbidi="on"> <div class="story-featured-image" style="border: 1px solid rgb(221, 221, 221); float: left; margin-bottom: 5px; margin-right: 15px; width: 368px;"> <img alt="Managing Director, Nigerian Ports Authority, Abdullahi Habib" class="attachment-bigstoryimage" height="375" scale="0" src="http://www.punchng.com/wp-content/uploads/2014/08/Abdullahi-Habib-360x375.jpg" style="border: none; float: left; margin-right: 10px; padding: 4px;" width="360" /><div class="featured-image-caption" style="clear: both; font-weight: bold; margin-bottom: 5px; padding: 5px 10px 0px;"> <span style="background-color: rgba(255, 255, 255, 0);">Managing Director, Nigerian Ports Authority, Abdullahi Habib</span></div> </div> <div id="nrelate_flyout_placeholder"> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);"><em>Disagreements over the equity contributions of partners in the Lekki deep seaport are currently threatening the takeoff of the project, </em>COMFORT OSEGHALE<em> writes</em></span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Disagreements over the value of land donated by the Lagos State Government for the establishment of the Lekki Deep Seaport have been identified as the cause of the delay in the takeoff of the project.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">The deep seaport is a joint venture project of the Federal Government, which is being represented by the Nigerian Ports Authority, the Lagos State Government and a Singaporean based investor, the Tolaram Group.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">The final document for the project, which is expected to begin operations in 2017, has yet to be signed as a result of the disagreements, with the NPA insisting on the revaluation of the land, which the Lagos State Government is contributing as its equity. The NPA and Tolaram Group are expected to provide the funds for the project.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">The Federal Government holds 20 per cent equity in the project; Lagos State Government, 18.5 per cent; and Tolaram Group, 61.5 per cent.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Upon completion, that deep seaport is expected to create over 162, 000 jobs and decongest the current ports in Lagos, which were built to handle 60,000 tonnes, but are now handling over 100,000 tonnes of cargo.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">The Assistant General Manager, Public Affairs, NPA, Mr. Musa Iliya, denied insinuations that the organisation was the cause of the delay in the takeoff of the project. He, however, confirmed that the value of the land was being investigated.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">“There have been lots of discussions on this project. We have got committees, which are looking into many issues. One of them is to ascertain the actual value of the land that was given by the Lagos State Government for this project. Is the land equivalent to what the NPA is contributing?” he asked.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Although Iliya admitted that the NPA was to put up its equity, he declined to say how much.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">He added, “The modalities are being worked out; it is much better to do things properly now instead of rushing issues and then dealing with problems in the future. We have held lots of discussions with the private investor involved and we are still holding discussions. However, the NPA is not delaying this project.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">“Of course, the NPA has some amount in dollars to put up as equity, but I don’t have the exact figure. I will have to check the documents and get back to you.”</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Another issue being considered by the NPA is the verification of Tolaram’s claims that it has spent about $60m on the project so far.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">The Executive Director, Engineering and Technical, NPA, Alhaji Mohammed Saleh, was reported to have recently told the Senate Committee on Marine Transport that the organisation had refused to put up its share of the equity because it needed a technical auditor to confirm the claims by the Tolaram Group.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Saleh reportedly told the committee that the NPA also had to be sure of the availability of Tolaram’s funds.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">“Although some amount was appropriated in the 2013 budget for this project, the NPA has to verify claims that Tolaram has spent $60m so far and has a balance of $152m on ground,” he was reported to have told the committee.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">Attempts to get a response from the Director of Finance, Lekki Free Trade Zone Project, Mr. Kundan Suainani, proved abortive as he did not respond to calls made to his mobile telephone line, nor respond to a text message sent to the same number. Suainani did not also respond to emails sent to him.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">At a press briefing last month, Suainani had said that the promoters of the project had received 805 hectares of land from the Lagos State Government.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">He had said, “The LFTZ is divided into various sub zones of deep seaport, industrial zone, and areas for liquid storage, among others. We all know there is a big challenge of storing petroleum products in Apapa; so, about 25 hectares have been dedicated to the construction of tank farms in the zone.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">“Ninety hectares have been allocated from a total of 805 hectares to the deep seaport and another 40 hectares for expansion. For the first phase of the project, we have been able to complete sand filling and build our corporate headquarters. Land allocation to investors is ongoing.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">“For the second phase, a lot of activities are going on concurrently. While internal road construction is in progress, we have also been working on the housing project, planning the liquid storage area as well as the power needs of the zone. By the time the port is operational in 2017; all other factories in the site would have been built.”</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">There was no response from the Lagos State Commissioner of Information, Mr. Lateef Ibiroga, as he did not respond to calls and a text message sent to his mobile telephone line.</span></div> <div style="padding: 0px 0px 5px; text-align: left;"> <span style="background-color: rgba(255, 255, 255, 0);">His counterpart in the Ministry of Commerce, Mrs. Olusola Oworu, could not be reached as her mobile telephone line indicated that it was switched off.</span></div> <div> <br /></div> </div> </div>

$1.5bn Lekki deep seaport project suffers setback

Managing Director, Nigerian Ports Authority, Abdullahi Habib Disagreements over the equity contributions of partners in the Lekki dee...

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