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LCC: Lagos Obtained Approval For Loan Conversion Not Takeover

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THE Lagos State Government has denied rumours that its House of Assembly approved the take over of Lekki Concession Company (LCC).

The state government said reports claiming that it had been given approval by its House of Assembly to take over the LCC were fictitious.

According to the state, the House of Assembly only granted approval to convert the African Development Bank (AfDB) loan from a private sector (commercial) loan to a sovereign (public sector) loan, which attracts a lower interest rate.

The state said this would enable the company to make some savings.

A statement by the state government said the approval obtained from the Lagos State house of Assembly was in accordance with the Federal Ministry of Finance’s requirement.

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The statement read in part, “Lagos state already acquired the full shares/equity of the former owners of the company in 2014. Lekki Concession Company Limited (LCC) is a Special Project, set up specifically to execute the Eti-Osa/ Lekki-Epe Toll Road Concession Project.

“The project is designed to deliver essential road infrastructure and services along the Lekki Peninsular of Lagos.”

The Lekki Toll Road Concession was conceptualized as a Public-Private Partnership (PPP) scheme, that uses the Build-Operate-Transfer (BOT) model of Infrastructure delivery.

The Concession is for 30 years, following which the assets will be transferred to the Lagos State Government.

 

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