CDB agrees financing for Nigeria's first deep sea port construction
Chinese debt and equity commitments have been secured for the biggest port project in West Africa. China Development Bank (CDB) will provide a $629 million project loan while state-owned China Harbour Engineering Company (CHEC) is providing $230 million of equity in exchange for a majority (52.5%) stake in the project. The remaining stakeholders in the project company - Lekki Port LFTZ Enterprise Limited (LPLEL) - will be Tolaram (22.5%), Nigerian Ports Authority (5%) and Lagos state government (20%).
The project is being built under a 45-year concession to LPLEL.. CHEC will carry out the construction works. and when completed, the port will be operated by CMA CGM under a sub-concession arrangement.. The advisory line-up for the deal comprises Allen & Overy, Templars, Marsh and Louis Berger (for LPLEL); Linklaters, Aluko & Oyebode and AON (for CDB) and Willkie Farr & Gallagher and Udo Udoma & Belo-Osagie (for CMA CGM).
Lekki Deep Sea Port phase 1 consists of two container berths with a depth of 16.5 metres and a total length of 680 metres. The port will be able to handle very large container ships with a maximum capacity of 18,000 TEUs. The annual handling capacity in phase 1 of the port could reach 1.2 million TEUs, and after completion of phase 2, the capacity will reach up to 2.5 million TEUs.
