Transport
Delta
Implementation
Nigerian Ports Authority
04-04-2018 20:59:29
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 the Koko Port Terminal, Delta state, 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.
The contract has been terminated. EOI for provision of transaction advisers services has been released in major daily newspapers and media (June 12, 2017).
9 June
As a result of competitive bid process, the right to lease Koko Port Terminal at the Port from the Lessor was awarded by BPE to Gultainer Bel Consortium that has formed the Lessee as a special purpose vehicle to enter into this agreement.
16 August
Pursuant to the NCP approval, BPE, on 19th June, 2005 invited bids for fully priced technical and financial proposals for the lease from the Lessor of the terminal forming park of Koko Port.
9 June
Execution of the Concession Agreement
11 June
Commencement of operation after fulfilling initial financial obligations
4 December
Expiry of contract agreement (25 years, Dec, 2005 – Dec. 2030)
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 |
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 | 2005 | 2006 | 2007 | 2008 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Target | Achievement | Target | Achievement | Target | Achievement | Target | Achievement | |||||||||
| Frozenfish growth rate @ 5.25% growth rate (-) | 41461 | Not Applicable | 43637.7 | Not Applicable | 45928.68 | Not Applicable | 48339.94 | Not Applicable | ||||||||
| Projected General Cargo throughputs based on Projected Annual Ship Calls @ Average of 1500 tons per ship (-) | 0 | 0 | 0 | Not Applicable | 90000 | Not Applicable | 150000 | Not Applicable | ||||||||
| Frozen fish (Tons) | 41461 | 0 | 43637.7 | 0 | 45928.68 | 0 | 48339.94 | 0 | ||||||||
| General Cargo (Tons) | 0 | 0 | 0 | 0 | 90000 | 0 | 150000 | 0 | ||||||||
| Average Tonnage per Ship Frozen fish (-) | 5000 | 0 | 5000 | 0 | 5000 | 0 | 5000 | 0 | ||||||||
| Average Tonnage per Ship General Cargo (-) | 15000 | 0 | 15000 | 0 | 15000 | 0 | 15000 | 0 | ||||||||
| Number of Ship Calls Frozen fish (-) | 8 | 0 | 9 | 0 | 9 | 0 | 10 | 0 | ||||||||
| Number of Ship Calls General Cargo (-) | 0 | 0 | 0 | 0 | 6 | 0 | 10 | 0 | ||||||||
| Year | 2009 | |||
|---|---|---|---|---|
| Target | Achievement | |||
| Frozenfish growth rate @ 5.25% growth rate (-) | 50887.78 | Not Applicable | ||
| Projected General Cargo throughputs based on Projected Annual Ship Calls @ Average of 1500 tons per ship (-) | 210000 | Not Applicable | ||
| Frozen fish (Tons) | 50887.78 | 0 | ||
| General Cargo (Tons) | 210000 | 0 | ||
| Average Tonnage per Ship Frozen fish (-) | 5000 | 0 | ||
| Average Tonnage per Ship General Cargo (-) | 15000 | 0 | ||
| Number of Ship Calls Frozen fish (-) | 10 | 0 | ||
| Number of Ship Calls General Cargo (-) | 14 | 0 | ||
| Performance Failure 1 | Performance failure 1 | |
|---|---|---|
| Category of failure | Financial objectives | Financial objectives |
| Number of events | 1 | 1 |
| Penalty or abatement provided in contract | Inability to atain financial close | Lorem ipsum dolor sit amet, ne eam dicat nostrum. Ad zril principes vim, nec etiam alienum in, eos molestie facilisis interesset at. Magna iracundia inciderint cum ut, at vis suscipit nominati efficiendi. Id intellegat inciderint usu, ea unum dicta scripta has, aeque dissentiet per id. Vel no feugiat graecis. Est purto dissentias ea. |
| Penalty or abatement imposed | Contract Termination | Lorem ipsum dolor sit amet, ne eam dicat nostrum. Ad zril principes vim, nec etiam alienum in, eos molestie facilisis interesset at. Magna iracundia inciderint cum ut, at vis suscipit nominati efficiendi. Id intellegat inciderint usu, ea unum dicta scripta has, aeque dissentiet per id. Vel no feugiat graecis. Est purto dissentias ea. |
| Penalty paid or abatement effected | Yes | Yes |
Initial contract terminated. NPA published EOI for provision of transaction adviser services
