FEC approves $1.3b for construction of Lekki deep sea port

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By BEN AGANDE, ABUJA.
The Federal government Wednesday took the initiative to decongest existing ports in the country as it approved a $1.35billion contract for the construction of a new Deep Sea Port in Lekki- Lagos State.

Minister of transport Senator Idris Umar who briefed state house correspondents after the weekly Federal Executive Council meeting said the project which is expected to be completed within the next four years is to constructed under a public private partnership PP arrangement on a concession basis for a period of 45 years after which it will revert to the federal government.

The Minister explained that the federal government has 20 percent equity in the project with Lagos state having 18.5percent equity while the private investors have 61.85 percent stake in the project.

He said “Council approved the issuance of a Guarantee to cover financial obligation of the NPA to pay compensation in the event of expropriation, war, civil disturbance, breach of contract and other event of default as per the concession agreement for the development of the port, as $800million out of the project cost is to be funded through debt financing while the balance of $554.5million is to be contributed by equity.

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