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CMA Terminals’ Subconcession of Container Terminal Operations of Lekki Deep Sea Port in Nigeria

Saturday, 09 November 2019 | 00:00

CMA Terminals (CMAT), a subsidiary of world leader in maritime transport CMA CGM, in connection with the subconcession from Lekki Port LFTZ Enterprise Limited (LPLEL) to a dedicated subsidiary controlled by CMAT of the container terminal operations of the Lekki Deep Sea Port that LPLEL is developing in the Lagos Free Trade Zone, Lagos State, Nigeria. The CMAT-controlled subsidiary, structured as a joint venture with China Harbour Engineering Company (CHEC), will operate the container terminal pursuant to a subconcession agreement signed on September 30, 2019.

The CMAT subsidiary–operated container terminal will be the principal terminal of the larger $1 billion port project, which project will anchor the 800-hectare Lekki Free Trade Zone being developed by Indonesian conglomerate Tolaram Group. With a planned handling capacity of 1.2 million TEUs per year (expected to expand to 2.7 million TEUs per year), the container terminal will be one of the largest and deepest in Sub-Saharan Africa.

The port represents the largest private investment in infrastructure in Nigeria developed on a non-recourse project finance basis and with a majority of financing being raised internationally. LPLEL is a joint venture between Tolaram, CHEC (subject to completion of its equity investment; CHEC is also the company contracted to construct the port), the State of Lagos and the Nigerian Ports Authority (the NPA). The NPA granted LPLEL a 45-year concession in order to develop and operate the port, and the port’s construction (as part of China’s Belt and Road Initiative) is being financed under a $629 million facility agreement that LPLEL signed with the China Development Bank last week. Operations are expected to begin in 2022.

CMAT is advised by a Willkie project finance team that is led by national partner Michaël Armandou and includes associates Jesse Gero and Maryon Demoulin, and by a Willkie corporate team that is led by partner Annette Péron and includes associate Virginie Sayag.

Udo Udoma & Belo-Osagie advised CMAT in Nigeria.

A&O advised LPLEL with a team including Tim Scales, Eleanor Milne, Steve Dejong, Tom Lindley, Peter Tolson, Jaya Gupta, Has Bharj, Yvonne Ho, Xue Wang and Jiran Liu in.

Templars advised LPLEL in Nigeria.

Linklaters advised The China Development Bank with Stephen Le Vesconte, Xiaohui Ji, James McLaren, Gilly Hutchinson, Jianbin Wang, Daisy Liu, Patrick Chen and Alex Bluett.
Source: Global Legal Chronicle

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