Lekki-Epe Expressway

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In October 2008, the 30-year BROT Lekki Epe Toll Road project reached financial closure. The concession contract was awarded in May 2006 by the Lagos State of Nigeria to Lekki Concession Company (LCC) by direct negotiation. Lekki Concession Company was a Special Purpose Company composed essentially by Asset & Resource Management Ltd (ARM) of Nigeria and Larue Projects International Ltd of Nigeria. Other shareholders included African Infrastructure Investment Managers (AIIM), a joint venture between the Macquarie Group and Old Mutual Investment Group, and LCC’s Contractor, Hitech Construction Company. As of December 2008, the detailed shareholder breakdown was not available. Under the term of the agreement, the Lekki Concession Company (LCC) committed to invest about US$382 million. LCC was responsible for the upgrade/rehabilitation of the existing 49.5km long expressway, the construction of 20-km long coastal road, the construction of a ramp to carry traffic onto the Falomo bridge, the construction of interchanges, footbridges, walkways and bus stops along the expressway, the construction of 10 interconnecting link roads between the Expressway and the coastal road and the construction of three toll plazas along the Expressway. The Lekki Concession Company was responsible for the operation and maintenance of the toll road for 30 years. Above a certain level of revenue, the revenues were to be shared by LCC and the government. However, there was no downside protection for LCC in case traffic numbers were below forecast. Financing arrangements were as follow. The financing was split into a number of tranches all provided in local currency. There was a 12-year US$100 million (N11.5bn) local loan provided by United Bank for Africa, First Bank of Nigeria and Zenith Bank. There was also a US$96 million (N11bn) 15-year international loan from Standard Bank, and a US$85 million (N9.8bn) 15-year direct loan from the African Development Bank. The sponsors put US$52 million (N6bn) of equity and there was a US$43 million (N5bn) mezzanine tranche from the Lagos local government. The state government and LCC announced in November 2011 that toll collection would commence on December 18, 2011.