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
04-04-2018 17:50:00
The terminal was given as a concession 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.
Real property in Terminal 'C' port of Lagos and certain immovable property affixed to the premises, and making certain improvements to the lease property.
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 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 officials, National Assembly members, terminal operators, and port users.
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
2 September
11 May
Execution of the Concession Agreement
11 May
Commencement of operation after fulfilling initial financial obligations
10 May
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 |
| Service payments |
None |
| 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 |
| Rationale for variation |
TheTincan Island & Roro port police station, staff canteen fire service which value represents about 10% of the Lesses bid was not in the area specified therein but only in the Premises described in Paragraph F of the recital Agreement dated 11th May2006 was handed over to it. The 10% of the Lesses' bid represented 40% of the Premises were excercised from the area handed over to the Lesse. A 15% of the Premises was occupied by Cortecna(a company that provides services to all terminals on behaf of the Federal Government eroding profitability &the business plans of the Lessee. The Lesse complained about the burden of paying lease fees. Pursant to Article18.2 of the Lease Agreement vesting the parties with power to amend the Agreement upon mutual consent of the Parties have agreed to amend the Agreement in order to ensure the full ralisationof the Development plan and provide for further development. |
|
| Change in roles and responsibilities of the parties |
Except as amended,changed or modified, all terms,conditions and provisions contained in th Contract Agreement shall govern this Supplemental Agreement and shall be in full force |
|
| Change in original risk allocation |
waiver of prior accrued rights by the lessee to the Lessor |
|
| Change in original fiscal commitments or contingent liabilities of government |
Lease fees made payable under Article3.4 in AppendixF shall be adjusted with 45% ratio of the Premises not handed over to it as set out in Schedule 1. Any deficit in payment by Lessee shall be paid in equal annual instaments at the same time of future payments over a period of 5years. |
|
| Change in tariffs of service levels |
Lease agreements amended by replacing the 10th aniversary of the Effective Date with the phrase 15th Anniversary of the effective date and the term granted is hereby deemed to have amended and restated with effect from the Effective Date. |
|
| Date of variation |
40592 |
| Year | 2007 | 2008 | 2009 | 2010 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| General Cargo (-) | 714769 | 0 | 729064 | 0 | 743646 | 0 | 758518 | 0 | ||||||||
| Dry Bulk (-) | 332582 | 0 | 339234 | 0 | 346019 | 0 | 352939 | 0 | ||||||||
| Liquid Bulk (-) | 326913 | 0 | 333452 | 0 | 340121 | 0 | 346924 | 0 | ||||||||
| Year | 2011 | |||
|---|---|---|---|---|
| Target | Achievement | |||
| General Cargo (-) | 773689 | 0 | ||
| Dry Bulk (-) | 359998 | 0 | ||
| Liquid Bulk (-) | 353862 | 0 | ||
Information will be published as soon as it is available.
Lessee shall provide annually Financial and Technical reports
Lessee shall provide a detailed five (5) year Capital Progam which identifies areas of expansion and improving of Operations, as well as human resourcess proposal.
Lessee shall prepare a quarterly traffic report of the volume of traffic passing through the premises ans the number of vessels inward/outward Cargo and Cargo Stored
Lessee shall audit annually its operations and quality standards
