The federal government Wednesday said it would spend N217 billion on the development of the Lekki Deep Seaport in Lagos State.
This came following approval by the Federal Executive Council (FEC) at its weekly meeting presided over by the Vice-President, Alhaji Namadi Sambo.
Briefing journalists shortly after the FEC meeting, the Minister of Information, Mr. Labaran Maku, said the project was approved in favour of Messrs Lekki Ports LFTZ Enterprise.
“The Minster of Transport presented a memo seeking an approval for the development of the Lekki Deep Seaport, Lagos State, through a Public Private Partnership (PPP) arrangements for a concession period of 45 years for the Ministry of Transport/Nigerian Ports Authority (NPA).
“The project upon completion will generate the sum of USD379 billion and the fact that the port will play a vital role in the economy.
“After deliberations, the council approved the project in favour of Messrs Lekki Ports LFTZ Enterprise (the project proponents) at an estimated cost of USD1,354, 500,000 under the concession agreement dated April 21, 2011.
“The council approved the issuance of a guarantee to cover financial obligation of the NPA to pay compensation in the event of expropriation, war, civil disturbance, breach of contract and other event of default as per the concession agreement for the development of the port, as USD 800,000,000 out of the project cost is to be funded through debt financing while the balance of USD554,500,000 is to be contributed by equity” Maku said.
He also disclosed that the council approved road contracts worth over N28 billion, including the construction of Kankara-Gurbi Road in Katsina State, which would gulp N1.4 billion, construction of Isoko Ring Road in Delta State, N2.1 billion, construction/rehabilitation of Yashi-Duguri-Yalo Road (Duguri-Dungare-Yalo Section) in Bauchi State, N1.75 billion.
The minister listed others as the construction of Jarmai-Bashar Road in Plateau State which will cost N1.38 billion, rehabilitation of Wukari/Akwana Road in Taraba State, N3.97 billion, construction of Ajase/Offa/Erin-Ike/Osun State Boundary Road in Kwara State at N1.24 billion.
Also included according to Maku, is the construction of Takum-Dongawa Road (15km) in Katsina-Alato Katum, N1 billion, construction of River Ebba Bridge at Cheche, Katcha Local Government Area in Niger State, N1.48 billion, rehabilitation of Amanwaozuzu-Uzoagba-Eziama-Orie-Amaohia road in IMO State, N1.275 billion.
According to him, the construction of Benin/Adumagbae-Egba-Akure Road in Edo/Ondo States will gulp N3.287 billion, reconstruction of Nung Udoe-Etinan-Ekom-Iman Road in Akwa Ibom State, N2.383 billion, construction of Bida-Sacci-Nupeko Road in Niger State, N8.673 billion.