Apapa Port, Terminal C Concession

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In October 2005, the Nigerian Bureau of Public Enterprises (BPE), the privatization agency, signed a 10 year concession with ENL Consortium to operate, rehabilitate and maintain terminal C at the Apapa port. The terminal handled bulk cargo. The concessioning of Apapa’s terminal C was part of a port reform program, which included all other terminals at Apapa’s port. The Nigerian Ports Authority (NPA) was responsible for monitoring the terminal operators under the landlord port model. The ENL Consortium comprised ENL, a Nigerian-based public utility management company, Haastrup Line WA, GSI and Dublin Port Company. There was no disclosure of individual stake of each consortium member. ENL Consortium won the concession contract through a competitive tender by offering the highest bid for lease and royalty fees which amounted to US$13.585 million (N1.806 billion) for terminal C through the concession period, in net present value. The ENL Consortium also committed to invest, modernize and expand the container terminal capacity according to its development plan estimated to cost some $10.22 million. BPE qualified eight bidders to submit bids for the terminal C tender, which took place in February 2005. The ENL Consortium was selected as preferred bidder for terminal C and Michelle Nigeria/Gold Star Line with a bid price of US3.7 million as the reserve bidder. In April 2005, the ENL Consortium was declared the winning bidder for terminal C. The final terms of the contracts for the terminal were negotiated with BPE between April and October 2005. The ENL Consortium took over the operation of terminal C in March 2006. It would operate the terminal for 10 years after which the terminal management would revert to the Federal Government. Under the concession contract, the terminals had to operate as a common-user facility. Port charges were expected to fall by 20-30 percent, but no time line was publicly disclosure on such charge reduction.