Disagreements over the equity contributions of partners in the Lekki deep seaport are currently threatening the takeoff of the project, COMFORT OSEGHALE writes

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.

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.

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.

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.

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.

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.

“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.

Although Iliya admitted that the NPA was to put up its equity, he declined to say how much.

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.

“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.”

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.

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.

Saleh reportedly told the committee that the NPA also had to be sure of the availability of Tolaram’s funds.

“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.

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.

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.

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.

“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.

“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.”

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.

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.


http://www.punchng.com/business/financial-punch/1-5bn-lekki-deep-seaport-project-suffers-setback

Oh no.

Goddex: So, Lagos state govt is contributing only land? They are even fraudulently inflating the cost of the land.

Why were these Louthmouthed APC supporters of APC running their stinking mouths with lies of Fashola building a Lekki seaport if the actual financing is to be done by GEJ and a foreign investor?

supporters of APC lying since 1521

Wahala too much!

Ok. which party they control Lagos state again?


Thunder fire those hypocrites this early morning, APC stealing more than PDP since 1800BC

edited.

Good morning Oga Ekoile, how you see this matter?

Build the port jawe!
Drop something for the boys!

Lagos state should go it alone.

So it is the NPA footdragging? They just might continue to investigate the value of the land contributed by LASG for the next 5 years, and at the end nothing gets done . I will implore the LASG to seek for a means to take up the portion of the FG (NPA) if actually that is possible.

How long should it take to value a land for goodness sake ? There are thousands of independentt land valuers, employ one and get the job done.

brownlord: Ok. which party they control Lagos state again?


Thunder fire those hypocrites this early morning, APC stealing more than PDP since 1800BC

edited.

Good morning Oga Ekoile, how you see this matter?

You are here again with your meaningless rant, if only you care to read and understand the problem, you just might be able to make an objective statement. Education has failed you

APC wolves in sheeps clothing

emiye: So it is the NPA footdragging? They just might continue to investigate the value of the land contributed by LASG for the next 5 years, and at the end nothing gets done . I will implore the LASG to seek for a means to take up the portion of the FG (NPA) if actually that is possible.

How long should it take to value a land for goodness sake ? There are thousands of independentt land valuers, employ one and get the job done.

You and I know that land in Nigeria and particularly Lagos lands are over-inflated, an actual land of N5million becomes N50million particularly when they know it's a govt project. Parties involved will NOT agree to the land evaluation and any partner willing to take up the portion of the FG will question the same. As for Tolram group, how can they spend $60million on a project that's not taken off. NPA has a good argument. It's a partner in the project and should question issues like thins. I hope they resolve it soon because it sure may hinder the progress of the project.

manny4life:


You and I know that land in Nigeria and particularly Lagos lands are over-inflated, an actual land of N5million becomes N50million particularly when they know it's a govt project. Both parties may not agree and any partner willing to take up the portion of the FG will question the same. As for Tolram group, how can they spend $60million on a project that's not taken off. NPA has a good argument. It's a partner in the project and should question issues like thins. I hope they resolve it soon because it sure may hinder the progress of the project.

Forget about what you and I think. We have land and estate valuers, so an independent professional land valuers can be employed to estimate that land. If the FG refuses to co-opeate with the assessment of an independent land valuer, then it simply does not want the success of the project, it is a clog in the wheel, that should be pushed out in every means possible., it is very annoying to be told value of land is a problem in such worthwhile project.


As for Tolram group, you have not seen the scope of work done so far on hundreds of hectares, so how do you start doubting from your computer it is not possible to have spent $60million ?

emiye:


Forget about what you and I think. We have land and estate valuers, so an independent professional land valuers can be employed to estimate that land. If the FG refuses to co-opeate with the assessment of an independent land valuer, then it simply does not want the success of the project, it is a clog in the wheel, that should be pushed out in every means possible., it is very annoying to be told value of land is a problem in such worthwhile project.


As for Tolram group, you have not seen the scope of work done so far on hundreds of hectares, so how do you start doubting from your computer it is not possible to have spent $60million ?

Bottom line is there's disagreement between parties about the value of the land = to the equity contribution of the project. I think the FG should pull out because if a piece of land is sold 10x than the real worth, then it's not really worth anything. The FG position isn't the value of land, but the value equitable to their contribution.

For a project that hasn't begun, yet a project that hasn't taken off, how do they spend $60million? Isn't the scope of work included in the progressive construction of the project? If Tolram has kicked off the project, that means construction already begun. The FG position stated

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.

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.

manny4life:

Bottom line is that there's disagreement between parties about the value of the land = to the equity contribution of the project. I think the FG should pull out because if a piece of land is sold 10x than the real worth, then it's not really worth anything. The FG position isn't the value of land, but the value equitable to their contribution.

For a project that hasn't begun yet, a project that hasn't taken off, how do they spend $60million? Isn't the scope of work included in the progressive constrution of the project? If Tolram has kicked off the project, that means construction already begun. The FG position stated

You need to first of all understand the phases of a project , there are roughly 6-7 stages, and yes all the stages require funding. at least from Project design, read the report once again, i have a feeling you did not read it.

Please developmental issues should be devoid of politics. From your tone, it seems you are interested in makng political statements.


If me and you in a joint venture want to set up a pure water manufacturing coy, and i am contributing a building and you are contributing the machines, to avoid disagreement, certified independent assessors can quantify the monetary value of my building, that way my equity contribution is determined.

tell me more

still watching.

All these people quoting b4 commenting no get work o!

Wait, what's the thread about sef? Lemme go check it out

Fashola playing Omo ale

Chei! So Fashola wan do Gej 419 ba? Him no no say Gej head dey there? These APC states sha, na only God fit separate them and lies. Meanwhile, oga Gej, when dey ready talk true, make you mercy for them and contribute your own quota.

atlwireles:
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.

I don't know the reason some people are abusing Fashola or LASG for the delay in this project. According to this report the FG should be held responsible for the delay because they are yet to evaluate the total cost of the land LASG have given out, so i see no fault from the LASG.
Though i really don't believe in elephant project in Nigeria until i can see it or i can feel it. I always add additional 3-5 years to any elephant project like this because i doubt the their time period.

They should build seaports in other states abi na only lagos dey Nigeria...

The lagos seaport alone has made lagos congested and people are moving their businesses to lagos to minimise costs and avoid destruction of products through accidents.

It would seem to me that you're on an arduous task here as there is a clear knowledge gap between you two. How you'll educate him is what I'm not sure if it's worth the effort.

emiye: You need to first of all understand the phases of a project , there are roughly 6-7 stages, and yes all the stages require funding. at least from Project design, read the report once again, i have a feeling you did not read it.

Please developmental issues should be devoid of politics. From your tone, it seems you are interested in makng political statements.


If me and you in a joint venture want to set up a pure water manufacturing coy, and i am contributing a building and you are contributing the machines, to avoid disagreement, certified independent assessors can quantify the monetary value of my building, that way my equity contribution is determined.

k

GodMode: They should build seaports in other states abi na only lagos dey Nigeria...

The lagos seaport alone has made lagos congested and people are moving their businesses to lagos to minimise costs and avoid destruction of products through accidents.

I wonder what's delaying I bake deepsea port in Akwa Ibom

When will 9ja system start working


Question for the gods

Wao !

Lekki Lagos deep seaport suffering

Pls, Any news about ibaka Deep seaport in Akwa ibom .

What is holding it or has it started Operating ?
Pls i really need to know, tanz .

when completed i can imagine d traffic for dat end. with that scam toll gate in lekki d traffic go madt

I smell scam

Goddex: So, Lagos state govt is contributing only land? They are even fraudulently inflating the cost of the land.

Why were these Louthmouthed APC supporters of APC running their stinking mouths with lies of Fashola building a Lekki seaport if the actual financing is to be done by GEJ and a foreign investor?

supporters of APC lying since 1521

When you fail to notice that there's little difference between the 20% the whole federal gov't is contributing, and the 18.5% just a state is contributing, then mathematics has failed you by dear brother.

GodMode: They should build seaports in other states abi na only lagos dey Nigeria...

The lagos seaport alone has made lagos congested and people are moving their businesses to lagos to minimise costs and avoid destruction of products through accidents.

Seaport should be built to landlocked states like kaduna, kano, osun, ekiti abi... Smh for you