1 June
RFP
Federal Government of Nigeria in June, 2006 enter into an agreement with Aulic Nigeria Limited to lease the LITFC edifice, purchase certain movable properties, make certain improvements to the lease properties
Social & Health
Lagos
Implementation
Ministry of Trade and Investment
02-04-2018 19:16:19
To lease the properties as a brownfield project and help develop, make certain improvements, perform certain operations, and provide good services for the lease property and movable assets, with the view to aid the improvement of the sustainable socioeconomic development of Nigerians.
Maintenance of a parcel of land, building, and appurtenances situated at kilometer 15, Lagos-Badagry Expressway, Oluti Village, Ojo local government. Approximately 322 hectares.
To lease the property as a brownfield project and help develop it, make certain improvements, perform certain operations, and provide good services for the lease property and movable assets.
The management, maintenance, and development of LITFC was handed to Aulic Nigeria Limited because of value for money as well as the government reserves the right to oversee all the activities and regulate all operations carried out in the complex.
Done in 2006 before the complex concessions.
One-page summary prepared by the ICRC, attached.
1 June
Federal Government of Nigeria in June, 2006 enter into an agreement with Aulic Nigeria Limited to lease the LITFC edifice, purchase certain movable properties, make certain improvements to the lease properties
1 June
As a result of a competitive bidding process, the right to enter into such agreement was awarded to the Lessee.
29 June
Execution of the Concession Agreement
14 July
Commencement of operation after fulfilling initial financial obligations. This is fifteen days after effective date ( This is 90days after the Agreement (Execution) Date.).
14 July
The Development Plan is staggered over the first ten years of the Concession Period. The remaining period of the Concession will be devoted to the management, monitoring and maintenace of the structuress to ensure sustainability.
14 July
The Development Plan is staggered over the first ten(10) years of the Concession Period.
14 July
This Project terminates at Thirtieth (30th) Annivasary of the effective date.
REDACTED PPP AGREEMENT
Not Specified
Not Specified
Not Specified
Finance through Equity and Debt
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 Complex 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 |
Guarantees |
None |
Grants |
None |
Service payments |
None |
Land Leases, Asset Transfers |
Complex leased out to the operator/Lessee |
Other support |
Obligation to provide and maintain within the concession period certain services like Marketing and development of the Commercial use of the lease Properly within the applicable law and Prudent Industry Practices and provision of operational facilities. |
Revenue share |
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 |
Rationale for variation |
Not Applicable |
|
Change in roles and responsibilities of the parties |
Not Applicable |
|
Change in original risk allocation |
Not Applicable |
|
Change in original fiscal commitments or contingent liabilities of government |
Not Applicable |
|
Change in tariffs of service levels |
Not Applicable |
|
Date of variation |
Not Applicable |
Year | 2007 | 2008 | 2009 | 2010 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
Capital Expenses (-) | 800000000 | 0 | 800000000 | 0 | 700000000 | 0 | 700000000 | 0 |
Year | 2011 | 2012 | 2013 | 2014 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
Capital Expenses (-) | 700000000 | 0 | 1400000000 | 0 | 2750000000 | 0 | 1350000000 | 0 |
Year | 2015 | 2016 | ||||||
---|---|---|---|---|---|---|---|---|
Target | Achievement | Target | Achievement | |||||
Capital Expenses (-) | 1350000000 | 0 | 1350000000 | 0 |
Performance Failure 1 | Performance Failure 2 | |
---|---|---|
Category of failure | Financial objectives | Financial objectives |
Number of events | 1 | 1 |
Penalty or abatement provided in contract | All premiums or other costs associated with obtaining and maintaining performance bond shall be paid by the Lessee. Such performance bond shall be renewed annually such that it shall remain in full force and effect until thirty (30) days after the Termination Date. | The parties shall bear their respective costsand neither party shall be required to pay the other party any costs arrising out of an event of force Majeure. |
Penalty or abatement imposed | If the termination is due to Lessee's event of fault, the compensation payable by the Lessee to the Lessor shall be the aggregate of the annual lease fees, costs, expenses, damages incured or sustained as a result of such termination | |
Penalty paid or abatement effected | No | No |
Performance Failure 3 | Performance Failure 4 | |
---|---|---|
Category of failure | Financial objectives | Financial objectives |
Number of events | 1 | 1 |
Penalty or abatement provided in contract | If the termination is due to Lessee's event of fault, the compensation payable by the Lessee to the Lessor shall be the aggregate of the annual lease fees, costs, expenses, damages incured or sustained as a result of such termination | If the termination is due to Lessor's event of fault, the compensation payable by the Lessor to the Lessee shall be the aggregate of : (a) any or all costs, expenses, harges, penalties incured or sustained as a result of such termination, including the cost of removable Asset (if any) b) Any and all Construction and development costs incurred by the Lessee persuant to the conduct of the development plan calculated on a pro rated basis. |
Penalty or abatement imposed | ||
Penalty paid or abatement effected | No | No |
Performance Failure 5 | Performance Failure 6 | |
---|---|---|
Category of failure | Financial objectives | Financial objectives |
Number of events | 1 | 1 |
Penalty or abatement provided in contract | The Parties shall bear their respective costs upon the expiry of the Lease Term. | If for any reasons, other than those attributable to the Lessee, the Lessor fails to• pay the payments that It is required to make in accordance with this Article on the Termination Date, the Lessor shall be liable to pay interest at the rate of NIBOR plus [five percent (5%) compounded monthly for the period 'of the delay until payment thereof. |
Penalty or abatement imposed | ||
Penalty paid or abatement effected | No | No |
Performance Failure 7 | |
---|---|
Category of failure | Financial objectives |
Number of events | 1 |
Penalty or abatement provided in contract | If for any reasons, other than those attributable to the Lessor, the Lessee fails to· pay the payments that It is required to make in accordance with this Article on the Termination Date, the Lessee shall be liable to pay interest at the rate of NIBOR plus [five percent (5%) compounded monthly for the period 'of the delay until payment thereof. |
Penalty or abatement imposed | |
Penalty paid or abatement effected | No |
Lessee shall audit annually its operations and quality standards
Lessee shall provide annually Financial and Technical information
The Lessee shall submit to the Lessor and the Regulator the first Planning and Investment Report within one hundred twenty (120) days after the Effective ,Date. On or prior to the fifth (5 th ) anniversary of such date and each five (5) years thereafter, the Lessee shall submit to the Lessor and the Regulator the Planning and Investment Report.