The pioneering 30-year Lekki Toll Road Concession currently being executed by Lekki Concession Company (“LCC”) for the rehabilitation and upgrade of approximately 50km of the Lekki-Epe Expressway (Phase I) and construction of approximately 20km of the Coastal Road (Phase II) has been recognized with yet another prestigious international award. The Reuters Project Finance International 2008 African Infrastructure Deal of the Year Award was presented to a team led by LCC’s Managing Director Opuiyo Oforiokuma at a gala dinner Awards Ceremony held in London on Tuesday 21st January. The Project achieved financial close in November last year after LCC successfully concluded negotiations with Shareholders and with local and international Lending Institutions to secure a N46.4 Billion long-term financing package on ground-breaking terms for Nigeria. In November last year LCC was also the proud recipient of the prestigious Africa Investor Magazine 2008 Transport Deal of the Year Award.
LCC’s Concession is Nigeria’s first-ever Toll Road Public Private Partnership (“PPP”) deal. The Project was originally conceived by the Lagos State Government as far back as the year 2000; however development of the project to bankable stage was an initiative of Asset & Resource Management Ltd (“ARM”) Nigeria’s leading Asset Management Firm and the largest Private Financier of infrastructure in the country today. ARM collaborated together with another local firm Larue Projects International Ltd in developing the Project to a stage where it was able to attract investment from overseas and local sources. In addition to ARM and Larue the African Infrastructure Investment Fund (“AIIF”) managed by African Infrastructure Investment Managers ("AIIM") a joint venture between the Macquarie Group and Old Mutual Investment Group are major shareholders in LCC. LCC’s EPCM Contractor Hitech Construction Company through a novel contractual ‘tie-in’ arrangement introduced by LCC is also a shareholder.
In celebrating the Award Opuiyo Oforiokuma said: “In addition to its recognition of the enormous contributions of Lagos State and LCC’s Sponsors and Shareholders the Reuters Project Finance International Award pays tribute to the efforts of the team of people organizations and institutions that worked together tirelessly and over a number of years to achieve financial close. This list includes Local Arrangers FBN Capital and UBA; Financial Advisers Standard Bank and Rand Merchant Bank; Legal Advisers Aluko & Oyebode and Trinity International; and Technical Advisers High-Point Rendell Toll Infrastructure Services Compsis Steer Davis Gleave and Goba. Lenders to the project include First Bank Zenith Bank UBA Diamond Bank Fidelity Bank Standard Bank (including Stanbic-IBTC) and African Development Bank. Delivering projects of this nature takes hard work and effort but above all teamwork. This is a genuine Team Award the credit for which LCC is privileged and pleased to be able to share with all involved”.
The Lagos Infrastructure Project is designed to provide much-needed solutions to problems caused by historical heavy traffic congestion and deteriorating road conditions along the Lekki-Epe Axis of Lagos the fastest growing region of Nigeria and amongst the fastest growing regions of Africa today. The Project construction works which are already being undertaken along the axis by the LCC Team will in future provide key benefits to stakeholders in terms of greater convenience of movement in and around the area shorter and more predictable journey times and improved safety and security. Our thanks and appreciation go out to all our stakeholders for their continued understanding support and encouragement while we undertake the works.