Lagos State Government, in Nigeria, has begun the process to restructure the Lekki Concession Company (LCC) Loan Facility provided by local and international lenders.
As we reported in May 2015 Lagos State Government, Nigeria, took over the concession rights of the Lekki-Epe Expressway from the Lekki Concession Company, LCC.
Lekki Concession Company, LCC had a 30-year concession under the build, operate and transfer (BOT) system. The concession agreement for the road was was executed on April 24, 2006.
The state bought out the equity interests in the concession. ARM Infrastructure Fund was the majority shareholder in Lekki Concession Company.
According to sources the State Government has issued a total amount of NGN9.8 billion (US$34.5 million) in order to cover the LCC indebtedness to the local and international lenders. On the other hand, the international lenders have granted a reduction of 21.16 percent of the total debt to the State so the Government has managed to save a total sum of NGN3.15 billion (US$12.3 million).
In addition, local lenders have also lowered its interest rates in debt loans from 18.5 percent to 13.5 percent, enabling savings of NGN8.7 billion (US$30.6 million).
The senior lenders group was formed by eight financial institutions including African Development Bank, Standard Bank UK, IBTC Stanbic, First Bank, Zenith Bank, Diamond Bank, Fidelity Bank and UBA, who committed a total amount of NGN40 billion for the project.
The Eti-Osa Lekki-Epe expressway is the principal arterial road connecting the Lekki-Epe axis to the rest of Lagos. The road PPP project included the rehabilitation and upgrade of the carriageway. It also involved the development of new bridge structures, drainage systems, underground service ducts, and various other features.