Lekki seaport gets $150m financing boost from AfDB

As promoters of the $1.5 billion Lekki deep seaport project perfect plans to commence construction work on the port site, African Development Bank (AfDB), one of the financiers of the project, said it has obtained the board approval for US$150 million funding for the project.

This is coming at a period when European Investment Bank, which is also very much eager to invest in the project, has also gotten principal board approval which would see them support the project with funds.

Lekki port project got a boost with the recent conclusion of due diligence required by one of its key investors, Nigerian Ports Authority (NPA), and this has put the project on a firm footing to become operational by 2018, said Sandeep Parasramka, chief finance officer of Lekki Port in a statement that was sent to BusinessDay on Wednesday.

According to Parasramka, “The project is on course and is progressing well, with respect to global standards. Large infrastructure projects like this take time to achieve its financial closure. A few more international banks that are part of funding partners are also in the process of securing board approval so as to join the list of banks investing in this laudable initiative.”

He stated that all financing banks are very keen to participate in the project given its strategic importance, competitive advantage, good financial returns, strong government support and unprecedented economic value, which the project is expected to inject into the economy.

Parasramka, who noted that big infrastructural projects like Lekki are usually undertaken through project financing on a non-recourse basis, also added that the process requires the lending parties to agree on appropriate terms of lending and to also conduct stringent due diligence.

“These processes take time and are very essential to achieving the debt financing. The most important development now is that Lekki Port is at an advanced stage, with due diligence completed and financing terms very much underway”, chief finance officer said.

Continuing, he stated, “All shareholders are very committed to ensuring that the scheduled operational date of 2018 is very much on course and we are making rapid progress. We have put plans in place to kick-off construction work at the tail end of the fourth quarter of this year.”