Transaction Advisors appointed
Appointment of Transaction Advisers
Nigerian Ports Authority
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 Container Terminal at the Apapa Port Complex and certain immovable property affixed to the Premises, and make certain improvements to the Lease Property as further describe in the development plan.
During the concession term, the Lessee is expected to utilize the Fixed Assets and such other assets to be added to the Lease Property for: 1. the handling and delivery services for the cargoes, including without limitation stevedoring, loading and unloading of vessels, transporting, sorting, storage and the procurement, operation and maintenance of equipment for the foregoing; 2. the repair and maintenance of the Fixed Assets. B Other services: 1. warehousing, stuffing and stripping/unstuffing, cleaning and fumigating, and consolidation, and the procurement,operation and maintenance of equipment for the foregoing; 2. ship shore handling of supplies for vessels 3. oversized cargo handling services; 4. terminal handling; 5. inland depot transfers; and 6. all other activities necessary to conduct Operations.
Landlord Model selected to ensure government retains the right to supervise daily operations at the Ports. The model further prescribes certain obligations,which 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, repairs and maintenance of access/common user roads.
Done in 2005 before the port concessions.Overtime, 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 officials, National Assembly members, Terminal Operators, and Port users.
One Pager prepared by the ICRC, Attached
Appointment of Transaction Advisers
Advertising for Expression of Interest
BPE on 23rd September, 2004, invited bids for fully priced technical and financials for the lease from the Lessor of the container terminal forming part of Apapa Ports.
Investors expressed interest in the terminal
As a result of the competitive bid process, the right to lease the container terminal at the Port from the Lessor was awarded by BPE to APMF.
Commencement of operation after fulfilling initial financial obligations
Commenced Implementation of Development Plan
Execution of the Concession Agreement
Expiry of contract agreement after 25 years of operations
Redacted PPP Contract attached
|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
Revenue from throughput shared between the parties on US$16 per TEU handled
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/development cost incurred by Lessee|
|Rationale for variation||
|Change in roles and responsibilities of the parties||
|Change in original risk allocation||
|Change in original fiscal commitments or contingent liabilities of government||
|Change in tariffs of service levels||
|Date of variation||
|GMT Compliance - Projected Volumes (Moves)||349343||0||394758||0||446077||0||504066||0|
|GMT Compliance - Projected Volumes (Moves)||564554||0||632301||0||708177||0||793158||0|
|GMT Compliance - Projected Volumes (Moves)||880406||0||977250||0||1084748||0||1084748||0|
Information will be published as soon as it is available.