The Board of Directors of the African Development Bank Group (AfDB) approved a combined US $256 million for the financing of investments in Nigeria and Ethiopia as well as a multinational projects preparation facility.
The approvals comprise a US $150-million senior loan to Lekki Port LFTZ Enterprise for the construction of a Greenfield seaport in the Lagos Free Trade Zone, 60 km east of Lagos.
The project follows a 45-year concession granted to Lekki Port LFTZ Enterprise (LPLE), the Special Purpose Vehicle, by the Nigerian Ports Authority (NPA) under a build, own, operate and transfer scheme.
It involves construction of port infrastructure such as breakwaters, quays, approach channels and dredging of the basin.
On completion, the port will be able to handle 2.5 million 20-foot equivalent units (TEUs), 16.7 million tonnes (MT) of liquid cargo and 4.5 MT of dry bulk per year.
Construction is expected to start in January 2015 with the container terminal operations expected to start in December 2018.
The project, estimated at $1.675 billion, will be financed through a 54/46 debt to equity ratio.