Enfidha Airport in Tunisia

TAV Tunisie (Enfidha and Monastir Airport Concessions) is a EUR563m project involving two inter-related 40-year concessions.

The first is to upgrade, operate and maintain the existing Monastir airport, Tunisia's largest airport in terms of passenger traffic and the second being to design, build, finance and operate a new international airport to be located in Enfidha, Tunisia.

Standard Bank Group's role in the landmark deal was as Arranger and Underwriter of the offshore commercial funding, as well as the Arranger of the offshore currency hedging. In addition, Standard Bank acted as co-financial advisor to the project.

Funding for the project, which should take three years to complete, comes from the Lagos State, which has invested Naira N5bn (US$42 million) in a 20-year mezzanine tranche. The African Development Bank provided N10bn (USD85 million) senior debt over 15 years and local bank lenders provided a 12-year note facility of N9.4bn (US$80 million).

The construction of the new airport will help to accelerate the growth of the tourism industry as well as stimulate employment.

Summary

Sector expertise Infrastructure
Client TAV Tunisie
Deal size EUR563m
Duration 3 years Jan 2008 - 2010
Connections TAV Tunisie, African Development Bank
Noteworthy This was the first public-private partnership in North Africa and the largest private sector investment in Tunisia to date and is a significant deal for the Tunisian government, for TAV Airports and the lenders.

http://www.stanbicibtcbank.mobi/deals/airport.jsp

A strange investment given the level of poverty, infrastructure needs and poor health and education levels in the state.

The investment was also in mezzanine debt which is basically unsecured debt. That is no collateral is normally taken for mezzanine debt.

I hope there is a reasonable explanation for this.

I don;t understand this sort of investment o. Gov fash

Lekki airport needs more investment, yet you are investing in tunisia

Are you kidding?what business has lagos with a tunisian airport?how about funding the lekki airport?of all investment opportunities its an airport in north africa(where they barely see themselves as africans)nonsense

This sort of story comes out when someone has stolen a big fish and a bone has stuck in their throat.
We be watching.

The story gets better as Tunisians are now protesting that the deal may be illegal.

The protesters believe that the Turkish investor is not supposed to make use of the Monastir Airport and that the deal signed between TAV and the former regime has no legitimacy.

http://www.tunisia-live.net/2011/10/04/tav-defends-enfidha-airport-deal-as-strike-continues-at-monastir-airport/

So if the deal is struck out as being illegal Lagos state may lose $42m just like that.

VoodooDoll:

A strange investment given the level of poverty, infrastructure needs and poor health and education levels in the state.

The investment was also in mezzanine debt which is basically unsecured debt.  That is no collateral is normally taken for mezzanine debt.

I hope there is a reasonable explanation for this.

It is an investment for Pete's sake. If lagos state will rake in double the amount in 2-3 years, what the heck?. They can use the profit to improve their own infrastructure and may be invite some of their foreign partner in the Tunisian deal to help finance the Nigerian infrastructure. Your question is like asking the US why they are sending aid to Pakistan when they have many citizens who needs aid.

This is old news, presumably dating back to 2008.

The investment was done some years ago, I don't recall seeing it in the news.

And as for the "investment" part I find it deplorable that Lagos State with all its infrastructural needs and poverty levels can spend cash like as if it is a Venture Capitalist.

Lagos state is not the USA. USA is a wealth country, Lagos state is a poor state in a poor country.

Nigerias GDP per capita is $2,500, whilst Tunisia's GDP per capita is $9,100.

Nigeria's infant mortality rate is 88.4 per 1,000 live births, whilst Tunisia's is 13.8 per 1000 live births.

If after reading the above you still believe this is a worthwhile expenditure then there is a bridge in Lagos that I want to sell you!!!!

Well it looks like this already expired.

But I don't think this was justifiable when it happened. Wetin concern lagos with Tunisia

Dear All,

The Lagos State Govt is in the process of verifying how this false news made it to Stanbic's website.

The details above are actually for an ongoing road construction which are in the public domain.

Some mistake by Stanbic but is being rectified.

StixX:

Dear All,

The Lagos State Govt is in the process of verifying how this false news made it to Stanbic's website.

The details above are actually for an ongoing road construction which are in the public domain.

Some mistake by Stanbic but is being rectified.

Really?
At what point can one institute a legal action against false publication or defamation?

@StixX

Very interesting,  can you please update on developments or post a source for the disclaimer.

Hi guys,

All you have to do is check the websites that made the error.
 
http://www.cfcstanbicbank.mobi/deals/airport.jsp
http://www.stanbicibtcbank.mobi/deals/airport.jsp

They've rectified the error and an official apology is in order.

Have a good day.

The link has redacted/deleted the reference to Lagos state and to the providers of the financing.

I will take that in good faith but it is interesting that a whole Stanbicbank can make such a school boy mistake. Unless there is more to the story.

Thanks for clarification.

Haha.

Lagos state's PR department is quite proactive

Good job though.