8 July
RFP
Pursuant to the NCP approval, BPE, on 8thth July, 2005 invited for bids fully priced technical and financial proposals for the lease from the Josepdam Prts Services for a right to enter into an agreement with the Lessor
Transport
Lagos
Implementation
Nigerian Ports Authority
04-04-2018 16:26:33
The terminal was concessioned to ensure increased efficiency of port operations, decrease the cost of port services to port users, and boost economic activities and accelerate development, among others. It is expected that the concession will bring about improvements to the leased properties, as further described in the development plan handed over to the terminal operators during contract execution.
The Terminal is located about 1 km frim the main road ( Liverpool Briedge). It occupies 8 ha of land and fully buoyed river channel. It has capacity for staking a million tons of cargo. The terminal has three (3) berths (TC1,TC1A, and TC2), with average draught of 12m, and measuring 484m long, and one transit shed and stacking area. The terminal handles predominantly bulk cargo and to some extent general cargo.
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. handling and delivery services for the cargoes, including without limitation stevedoring, loading and unloading of vessels, transporting, sorting, storage, and procurement, operation, and maintenance of equipment for the foregoing; and 2. repair and maintenance of the fixed assets. Other services: 1. warehousing, stuffing and stripping/unstuffing, cleaning and fumigating, and consolidation, and procurement, operation, and maintenance of equipment for the foregoing; 2. ship-to-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.
A landlord model was selected to ensure that the government retains the right to supervise daily operations at the ports. The model 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, and repairs and maintenance of access/common user roads.
Conducted May 3 to 17, 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 officials, National Assembly members, terminal operators, and port users.
One-pager prepared by the ICRC, attached.
8 July
Pursuant to the NCP approval, BPE, on 8thth July, 2005 invited for bids fully priced technical and financial proposals for the lease from the Josepdam Prts Services for a right to enter into an agreement with the Lessor
2 September
On 2nd September, 2005, as a result of such competative bid process, the right to lease Terminal 'A' at the port from the lessor (NPA) was awarded by BPE to the Lessee (Josepdam Ports Services).
6 September
Concession of Nigerian Seaports: Financial Bid Proposals for Tincan Island Port Terminal
6 September
Concession of Nigerian Seaports: Financial Bid Proposals for Tincan Island Port Terminal
24 April
Commencement of transition arrangements for terminals at Tin Can island Port 24th April 2006;
24 April
Commencement of transition arrangements for terminals at Tin Can island Port 24th April 2006;
10 May
Take over terminal at Tin Can Island Port 10th may 2006;
11 May
Execution of the Concession Agreement
26 August
Commencement of operation after fulfilling initial financial obligations. This is fifteen days after effective date ( This is 90days after the Agreement (Execution) Date.).
1 May
Expiry of contract agreement. This captures the additional five (5) years extension from the addendum.
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 |
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 | |||||||||
| Dry Bulk (-) | 1376409 | N/A | 1514050 | N/A | 1665455 | N/A | 1832000 | N/A | ||||||||
| Liquid Bulk (-) | 37570 | N/A | 39542 | N/A | 41618 | N/A | 43803 | N/A | ||||||||
| Total (-) | 1413979 | N/A | ||||||||||||||
| Year | 2010 | 2011 | 2012 | 2013 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| Dry Bulk (-) | 2015200 | N/A | 2120988 | N/A | 2232351 | N/A | 234549 | N/A | ||||||||
| Liquid Bulk (-) | 46103 | N/A | 48524 | N/A | 51051 | N/A | 53752 | N/A | ||||||||
| Total (-) | 2283422 | N/A | 288301 | N/A | ||||||||||||
| Year | 2014 | 2015 | ||||||
|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | |||||
| Dry Bulk (-) | 2472900 | N/A | 2602728 | N/A | ||||
| Liquid Bulk (-) | 56574 | N/A | 59544 | N/A | ||||
| Total (-) | 2529474 | N/A | 2662272 | N/A | ||||
| Performance Failure 1 | Performance Failure 2 | |
|---|---|---|
| Category of failure | Financial objectives | Financial objectives |
| Number of events | 1 | 1 |
| Penalty or abatement provided in contract | Lessee guarantees to handle at least ninety per cent (90%) of projected cargo throughput as provided in its technical proposal | If the Lessee fails to with any of its obligation set out in Article VII, the Lessor may then fulfil such obligation behalf or for the Lessee at its own costs and then later ecover it through a jidicious way and quote |
| Penalty or abatement imposed | If Lessee fails to achieve at least ninety per cent (90%) of such throughput, the Lessee shall pay the Lessor the throughput fees of the difference between the throughput handled and the guaranteed volume of ninety per cent (90%). | |
| Penalty paid or abatement effected | Yes | Yes |
| Performance Failure 3 | |
|---|---|
| Category of failure | Financial objectives |
| Number of events | 1 |
| Penalty or abatement provided in contract | If the Lessor fails to with any of its obligation set out in Article VIII, the Lessee may then fulfil such obligation behalf or for the Lessee at its own costs and then later ecover it through a jidicious way and quote |
| Penalty or abatement imposed | Failure to provide pilotage, towage, berthing, unberthing and shifting of vessel services in accordance with the provisions of Sub Section 8.5(a} so as to have a material adverse effect upon the performance of the Operations of the Lessee shall require the parties to meet and discuss the reduction in the Throughput Fee to compensate the lessee for any financial loss that the lessee has incurred as a consequence of the Lessor's acts or omissions. |
| Penalty paid or abatement effected | Yes |
Inauguration of Concession Agreement Review Committee : The NPA in May, 2017 inaugurated the Committee made up of relevant MDAs to review the concession agreements currently being operated by the Terminal Operators.
