FG approves new sea ports with FG 20% equity,LASG 18.5%and private public initiative 61.5%.This will go a long way to provide employment .The project will cost about $1.5billion
THE Federal Government has approved the development of Lekki Deep Sea Port in Lagos State at the cost of $1.4 billion in its commitment to expand sea ports in the country.The approval came on Wednesday at the weekly meeting of the Federal Executive Council (FEC) presided over by Vice-President Namadi Sambo in State House, Abuja.Also okayed by the Council were various contracts for the construction of 12 roads in different parts of the country worth about N30billion.Minister of Information, Mr Labaran Maku, joined by his Transport counterpart, Senator Idris Umar and Supervising Minister of National Planning, Bashir Yuguda, said while briefing State House correspondents after the meeting that the port would be developed under Public Private Partnership (PPP) arrangements for a concession period of 45 years.The contract was awarded in favour of  Messrs Lekki Ports LFTZ Enterprise at an estimated cost of $1,354,500,000.00 with a completion period of four years.Shedding more light on the project, the Minister of Transport said the Federal Government has 20 per cent equity under the arrangement, Lagos State government has 18.5 per cent equity while the private investors have 61.85 per cent equity.He explained that the port was designed to handle the largest vessels in the world which he said would enable the country to catch up with the developed world in the area of ports operation.He stated:  “Upon the expiration of 45 years concessioned period, the entire project will revert automatically to the Federal Government.“Council approved the issuance of a guarantee to cover financial obligation of the Nigeria Ports Authority (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 $800  million out of the project cost is to be funded through debt financing while the balance of $554.5  million is to be contributed by equity.“The port is expected to cover an area of 90 hectares however with plans of expansion.“The physical  characteristics of the port include, a length of fresh waters of 1,500 meters. The main key hold will be 575 meters, the channel length will be  six kilometers and the
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