Lekki Port secures US$60m first tranche of loan facility from CDB

NIGERIALekki Port LFTZ Enterprise Limited (LPLEL), has received the sum of US$60 million, which is the first instalment of the US$629 million loan facility from China Development Bank (CDB) for the construction of the Lekki Deep Sea Port.

The US$629 million loan facility agreement with China Development Bank was signed in Lagos, Nigeria in 2019 to provide the funding for the deepest seaport in the sub-Saharan African region.

The Managing Director, Lekki Port LFTZ Enterprise Limited, Du Ruogang stated that the first instalment of the loan facility was received on Thursday, April 29, 2021, as the company had satisfied all the conditions precedent for the release of the funds.

He expressed appreciation to the Federal Ministry of Transportation, the Lagos State Government and the Nigerian Ports Authority for all the support in this regard.

He stated that receipt of the first instalment of the loan facility is a major breakthrough in the quest to deliver a world-class deep seaport and to ensure that commercial operations commence before the end of 2022.

LPLEL is owned by Singaporean conglomerate Tolaram Group and (subject to completion of its equity investment) China Harbour Engineering Company (CHEC).

Lekki port is being developed by LPLEL under a concession agreement from the Nigerian Ports Authority signed in 2011 and will be one of the most modern ports in West Africa when it is built. The port will have separate container, dry bulk and liquids terminals.

The CDB loan will enable the construction of the port’s container terminal, which will initially have two berths and an annual handling capacity of up to 1.2 million twenty-foot equivalent units (TEUs) and is expected to expand to three berths and 2.7 million TEU annual handling capacity.

The container terminal is being constructed by CHEC and will, when completed, be operated by the French shipping giant CMA CGM under a bespoke sub-concession arrangement. Operations are expected to start in 2022. 

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