MegaProject 465: Lagos to re-launch airport concession tender
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The government of Nigeria has announced plans to relaunch a tender process to carry out the development of the second international airport in Lagos through a public private partnership (PPP) project.
The airport, which will be promoted by Lagos State government, is to complement the existing federal-owned Murtala Mohammed International Airport (MMA) in Ikeja.
A total of four firms are currently supporting Lagos State to carry out the project:
- Arup, which provides engineering, design, planning, project management and consulting services,
- Norton Rose Fulbright, a global legal firm,
- Stanbic IBTC Capital, a member of Standard Bank Group, which is acting as the sole financial adviser,
- Banwo & Ighodalo, a legal firm based in Nigeria.
The government plans to develop the project in phases. For the first phase the total project investment is estimated at N71.64 billion (US$352.7 million).
In October 2013 three consortia led by Bouygues Batiment, Eko Global and Maevis, were in the race for the first round of bidding for the previously launched tender process. The project was expected to be awarded in April 2014 with construction works shceduled to start two months later. According to a government official that tender process slowed down due to the fact that the investors finally withdrew from the deal.
At that time the intention was to award the project in April 2014 under a design, build, finance, operation and maintenance (DBFOM) concession agreement.
The new airport would sit on 4,500 hectares of land and would have three runways and passenger capacity of 3.2 million per annum after the first phase.
In early May we published that a tender process for the Lot 2 of Abuja (Nigeria) Light Rail PPP project was expected to be launched soon. The Light Rail project would cover a total of 54.1 km passing through Eagle Square to Gudu and down to Nyanya axis, in Abuja. The new line would have about 16 stations.
During the last two weeks we have reported about several airport PPP projects globally:
- Pouso Alegre international airport concession - Brazil
- Kansai and Osaka international airport concession - Japan
- Milas-Bodrum airport terminals concession - Turkey
- Madagascar Ivato and Fascène airports concession - Madagascar
- Palmerola International Airport project - Honduras