Tolaram Group; the consortium building the Lekki deep sea port, has assured that the multimillion dollars project is on course.
Giving the assurance yesterday, the group’s Chief Finance Officerg; Mr. Sandeep Parasramka disclosed that the Port project got a boost with the recent conclusion of the due diligence required by one of its key investors, the Nigerian Ports Authority (NPA), putting it on a firm footing to become operational by 2018.
Tolaram Group; the consortium building the Lekki deep sea port, has assured that the multimillion dollars project is on course.
Giving the assurance yesterday, the group’s Chief Finance Officerg; Mr. Sandeep Parasramka disclosed that the Port project got a boost with the recent conclusion of the due diligence required by one of its key investors, the Nigerian Ports Authority (NPA), putting it on a firm footing to become operational by 2018.
“The project is very much on course and is progressing well with respect to global standards, large infrastructure projects like this take time to achieve financial closure.
Giving an insight into the progress so far recorded, he added : “I can confidently tell you that African Development Bank has recently obtained Board Approval for US$150 million funding for the project while European Investment Bank which is very much eager about investing in the project, has also gotten Principal Board Approval which would see them support the project with funds also.
“A few more international banks that are also in the process of securing their Board Approval are also going to join the list of banks, investing in this laudable initiative. All the Banks are very keen to participate in the Project given its strategic importance, competitive advantage, good financial returns, strong Government Support and unprecedented economic value it is expected to inject into the economy.”
Parasramka added that, “conventionally, projects of this magnitude are undertaken through project financing on a non-recourse basis. This requires the lending parties to agree on appropriate terms of lending and conduct stringent due diligence. These processes take time and are very essential to achieving the debt financing. The most important development now is that Lekki Port is at an advanced stage, with the due diligence completed and financing terms very much underway.
“With the magnitude of processes and resources required to complete a large infrastructure project, it is inevitable that there will be time overruns, and Lekki Port is no exception. However, we understand that all shareholders are very committed to ensuring that the scheduled operational date of 2018 is very much on course and are making rapid progress towards this, with a structured plan put in place to kick-off construction works at the tail end of the fourth quarter of 2014”, he concluded.
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