The Lagos State House of Assembly, on Monday, approved Governor Sanwo-Olu request for the state to take full ownership of Lekki Concession Company (LCC) and conversion of the African Development Bank (AFDB) LCC loan.
LCC is a privately own company in charge of the construction of the Lekki-Ajah Expressway and control of the Lekki Toll Gate a project financed with a loan from AFDB.
According to Vanguard, Chairman of the Committee, Mr Rotimi Olowo in his representation, said upon the buy-out of all the shareholding’s interest of LCC by the state, Lagos state government becomes the subsisting shareholder of LCC with 75 per cent and the office of Public-Private Partnerships shareholding 25 per cent respectively.
He also added that the original $53.9 million loan obligation from a private sector facility, AFDB, had been resolved after series of engagements between the AFDB, LCC and the State Government to convert the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02 per cent of $1.12million bi-annual as against the 4.12 per cent of $2.746million per bi-annual, thus giving a savings of $1.16million bi-annual or $3.24milliom per annum.
The Lagos State House of Assembly granted the governor the approval as requested and to backed up the loan by the Federal Government’s guarantee on behalf of the State Government.
The House also authorize the State Government to issue a counter-guarantee in favour of the Federal Government along with an irrevocable standing payment order, ISPO to deduct from Lagos State Government statutory allocations.
It was also gathered that the servicing of the loan application would be a maturity till August 2034.
Commending the State Government initiative, Mr Gbolahan Yishawu said the recommendation of the State Government to take full ownership of LCC was a smart move as the interest rate would not injure what the State was spending on capital expenditures.
In his remarks, the Speaker of the House, Mr Mudashiru Obasa directed the acting Clerk, Mr Olalekan Onafeko to send a clean copy of the resolution of the House to the Governor.
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