According to report reaching oyogist.com, Lagos State Government has received the nod of the House of Assembly to assume full ownership of Lekki Concession Company (LCC).
The privately owned company was the special purpose vehicle that executed the Lekki Toll Road Concession Project.
With the endorsement of Governor Babajide Sanwo-Olu’s June 21 request, Lagos will now control the affairs of LCC and manage the Lekki toll gate.
The House approval followed the presentation of a report by the Committee on Finance during plenary session on Monday.
The Chairman, Rotimi Olowo (Somolu I) said Lagos would become the subsisting shareholders of LCC with 75 percent; Office of Public Private Partnerships will own 25 percent.
Olowo explained that this was the result of the buy-out of all shareholding interests of the company by the state government.
The $53.9million loan obligation from a private sector facility has been resolved after engagement between Africa Development Bank (AFDB), LCC and Lagos.
The agreement converts the loan to a public sector facility with the benefit of a considerable reduction in interest charges of 1.02 percent of $1.12million biannual.
The lawmaker said this is against the 4.12 percent of $2.746million per bi-annual, with savings of $1.16million bi-annual or $3.24million per annum.
The AFDB loan becomes public sector loan, backed by sovereign Federal Government guarantee on behalf of the Lagos government.
The State will issue a counter guarantee in favour of the Federal Government along with an Irrevocable Standing Payment Order (ISPO) to deduct from its statutory allocation.
Olowo noted that the servicing of the loan obligations would have a maturity till August 2034.
Lagos Speaker, Mudashiru Obasa, directed the Acting Clerk, Olalekan Onafeko, to send a clean copy of the House resolution to Governor Sanwo-Olu.
