27 January
RFP
Pursuant to the NCP approval, BPE, on 27th January, 2005 invited bids from the FMN for a right to enter into an agreement with the Lessor
Transport
Lagos
Implementation
Nigerian Ports Authority
03-07-2020 12:21:32
The terminal was concessioned to ensure increased efficiency of port operations, decrease cost of port services to port users, and boost economic activities and accelerate development, among others. It is expected that the concession will further bring about improvements to the leased properties, as further described in the development plan handed over to the terminal operators during contract execution.
Lease of Terminal B at the Apapa Port Complex with certain immovable property affixed to the premises.The asset also covers a 272.51 meter long quay deck, including berths 4 and 5 with appropriate quay hardware: Transit Sheds 4 and 5; Commercial Office block B; Commercial Office block C (Marketing Hall); Chief Port Engineer's office; Back Sheds 3, 4, 5, 6, 7, 8, 9, and 10; Building beside Back Shed 3; Federal Ministry of Health Building; NPA Security Building; National Cargo Office; and Mosque Anyman Canteen Store beside Anyman Canteen.
Handling and delivery services for cargo, including without limitation stevedoring, loading and unloading of vessels, transporting, sorting, and storage of cargoes at the port terminal. Apapa Bulk Terminal Limited provides a spectrum of facilities in terms of consolidations, warehousing, open storage areas, packing, repair facilities, and office complexes. In doing so, it continues to add tremendous value to the logistics chain and in meeting the expectation of port users and stakeholders by offering services such as: transit warehousing for import and export cargo; bonded warehousing, which enables importers to store cargo and ask for partial releases, thereby deferring duty payment; and network cargo distribution and delivery. The key value it offers is the provision of the most convenient single-window facility that can coordinate with all the different agencies and services involved in the bulk and break bulk cargo trade.
A landlord model was selected to ensure that the government retains the right to supervise daily operations at the ports. The model further prescribes certain obligations that must be carried out by the lessor, such as maintenance, repairs, renewals, and replacements of the quay wall and navigational aids on the premises during the concession time. The lessor is also expected to provide certain utilities and facilities to enhance port operations. Such utilities/facilities include electricity power, water supply, tug boats, and repairs and maintenance of access/common user roads.
Done in 2005 before the port concessions. Over time, the Infrastructure Concession Regulatory Commission has also made efforts to meet with stakeholders to the ports during its periodic monitoring visits. These stakeholders include public sector offcials, National Assembly members, terminal operators, and port users.
SUMMARY OF STAKEHOLDER ENGAGEMENT ON THE REVIEW OF PORT CONCESSION CONTRACTS
The Commission in May, 2015 recommended the review of the port concession contracts signed by the Nigerian Ports Authority (NPA) in 2005/2006 with Port Terminal Operators in Apapa, Tin-Can Island (Western Ports), Onne, Port-Harcourt, Warri and Calabar Ports (Eastern Ports). The NPA on 2nd March, 2017 informed the Commission that it has initiated the review of the port concession contracts with terminal operators.
The Nigerian Ports Authority set up an Inter- Agency Committee which was inaugurated on 16th May, 2017 following mutual agreement by the parties to review the contracts with the aim of improving on the Management of the port terminals.
The ICRC was nominated as a member of the Committee among other stakeholders (The Federal Ministry of Justice, Bureau of Public Enterprises (BPE) and Federal Ministry of Transportation). Several meetings and interactive sessions were held by the Committee to review the contacts under three thematic areas of – Legal Issues, Administrative Issues and Operational Issues in the contract. The Committee visited all the port terminals in the Eastern and Western parts of the country between 12TH – 15TH December 2017 to carry out an on-the-spot assessment of the terminals and engaged with the operators on the contract review.
The Committee received technical support from the World Bank through its Consultants - (MBTS) which assisted the Inter-Agency Committee on the review exercise.
Current Status
The parties met and negotiated the contract clauses reviewed and other essential issues which were considered during the review exercise. A draft supplemental agreement was prepared by NPA and sent to the Federal Ministry of Justice and the ICRC for review. The ICRC concluded its review of the supplemental contracts in May, 2020 and forwarded its views to NPA for consideration. Some of the issues considered during the review exercise were:
One-pager prepared by the ICRC, attached.
27 January
Pursuant to the NCP approval, BPE, on 27th January, 2005 invited bids from the FMN for a right to enter into an agreement with the Lessor
25 October
Execution of the Concession Agreement
3 April
Commencement of operation after fulfilling initial financial obligations
2 April
Expiry of contract agreement
REDACTED PPP AGREEMENT
Type of risk | Description | Allocation | Mitigation |
---|---|---|---|
Pre-construction risk | Risk associated with project preparation/Permit and approval risk | Public Sector | |
Construction / Completion | Construction and Renovation of Terminal structures | Private Sector | |
Cost risk | Cost Overrun | Private Sector | |
Refinancing risk | Financial Close/Debt servicing/interest repayment | Private Sector | |
Risk related to change in law, taxes, scope, technical standards, regulatory framework | Project scope, laws, environment, government policies | Public Sector | |
Exchange rate risk | Fluctuation in country's exchange rate/devaluation/global impact | Public and Private Sectors | |
Operating risk | Competition, workers action, etc | Private Sector |
Land Leases, Asset Transfers |
Terminal leased out to the operator |
Other support |
Obligation to provide certain services like dredging of the channels and provision of operational facilities. |
Revenue share |
Revenue from throughput shared between the parties |
Throughput fee at break bulk/multipurpose terminals 2016/2017
Throughput fee rate at Oil and Gas Related Terminals 2016/2017
Events of Default | Brief description | Termination Payments | Documents |
---|---|---|---|
Insolvency | Immediate termination notice | Pay to the Lessor any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessor as a consequence of such termination | |
Performance Failure | Fails to perform the Operations for 14 consecutive days in an operating year or 60 non consecutive days in a non operating year. | Pay to the Lessor any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessor as a consequence of such termination |
Events of Default | Brief description of events of default | Termination Payments | Documents |
---|---|---|---|
Government Action | Lease property (in whole or in part) is expropriated compulsorily acquired or nationalized by a Government Agency. | Pay to the Lessee any and all actual costs, expenses, charges, and/or penalties incurred or sustained by the Lessee as a consequence of such termination | |
Government Action | Lessor event of default in the first perating year | Refund of commencement fee, all construction/develoment cost incurred by Lessee |
Year | 2006 | 2007 | 2008 | 2009 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
Bulk Cargo -Import & Export (mt) | 701250 | N/A | 819000 | N/A | 959175 | N/A | 1126204 | N/A |
Year | 2010 | 2011 | 2012 | 2013 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
Bulk Cargo -Import & Export (mt) | 1325398 | N/A | 1445175 | N/A | 1488530 | N/A | 1533186 | N/A |
Year | 2014 | 2015 | ||||||
---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | |||||
Bulk Cargo -Import & Export (mt) | 1579182 | N/A | 1626557 | N/A |
Information will be published as soon as it is available.
The terminal reported during one of the Commissions (ICRC) monitoring visit. That some of the challenges faced by ABTL are mostly from its operations , however with the assistance from Nigeria Ports Authority(NPA), Most of the challenges have been addressed especially the issue of dredging. The terminal can now boost of having the deepest channel in Lagos, which is about 13.5 Meters deep, against 9.4 Meters as at commencement of operations.