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 19:14:33
To increase the efficiency of port operations and reducing the cost to the users.
Real property in the Port of Lagos and certain immovable property affixed to the premises, and making certain improvements to the lease property.
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.
A landlord model was selected to ensure that the government retains the right to supervise daily operations at the ports.
Done in 2005 before the port concessions.
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
11 May
Commencement of operation after fulfilling initial financial obligations
30 May
Expiry of contract agreement
Redacted PPP Contract attached
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 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 |
| Guarantees |
None |
| Grants |
None |
| 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 |
The Lessee bidded for the project area comprising 272,234.56squaremeter and a portion of the area given to Cotecna. At the handover Terminal B, to the Lessee,the area security office,port main gate and a portion of the area given to Cotecna covering 18,642.47square meters was not handed over to the Lessee resulting in the loss of valuable stacking area.whereas its the lessor responsibility to commence rehabilitation of the quay wall within 8months of the Effective date which fell in February 2007 which responsibility the lessor commenced towards the end of 2009 that led to the berths not operational for aperiod of 3years with adverse effect on the profitability and overall projections of the Lesse. The lessee complaints stated there in its operations and ability to meetings its targets under the Agreement upon which parties agreed to amend the Lesses Development plan. |
|
| 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 |
None |
|
| Change in original fiscal commitments or contingent liabilities of government |
Lease fees made payable under Article3.4 in AppendixF shall be adjusted with 12.42% 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 |
40605 |
| Year | 2006 | 2007 | 2008 | 2009 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| TEU (-) | 105266 | 0 | 112635 | 0 | 120519 | 0 | 128956 | 0 | ||||||||
| Year | 2010 | 2015 | 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | |||||||
| TEU (-) | 137983 | 0 | 193527 | 0 | 221569 | 0 | ||||||
| Performance Failure 1 | |
|---|---|
| Category of failure | Financial objectives |
| Number of events | 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 |
| 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 |
