Nigeria: Lagos, Asian Firms Build Energy City
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Daily Champion (Lagos)
5 March 2008
Posted to the web 5 March 2008
Sopuruchi Onwuka
Lagos
As the states and communities in the Niger Delta region of the country sustain sundry hostilities on the petroleum industry, Lagos state government is exploring the economic opportunity of providing a safe, secure and congenial corporate haven for the energy industry operators.
In doing this, the state government headed by Alhaji Babatunde Fashola is targeting to leverage the economic investments in hospitality, tourism, power and ancillary services to generate employment and revenue to sustain rapid expansion of Lagos to one of the world's megacities.
Consequently, the state has entered into a joint venture with a league of Asian and local investors to realize the $1.8 billion or N07 billion Lagos Energy City Project that would open up the Badagry exis of the state for a world class business solutions facility for oil firms, service firms, financial institutions, digital platform providers, communication firms and sundry service providers in an infrastructure enhanced enclave.
According to the investment consortium formed by promoters of the project. Supra Energy and Power City Limited, the Energy City Project will within a short gestation period establish a seamless haven comprising a convention centre, resort and hotel zones in two phased project cycles.
Local and international partners in the consortium include Lagos state government with the full support of the Action Congress (AC) political party, world Energetic Holdings Limited of Hong Kong, Elite Max Asia Limited of Hong Kong, Royal Orchid Holdings Limited of Hong Kong, and Transglogal Energy Funds pte Limited of Singapore.
Zenith Bank Plc is the lead banker Siam Design Consortium comprises the design and planning firms, while Ernst & Young holds the portfolio for due diligence advisor for the project.
The fat investment package from Asia finds destination in Niger in consideration of the country's robust potential for sustained omission as the world's eight biggest oil exporter with reserves currently being built to 40 billion barrels and gas reserves currently at 187 trillion cubic feet.
The investors also bank on the government's efforts to grow the gas sectors to overtake oil as the price revenue earners in the next 10 years, and that Nigeria currently is the hub of business in the West African region, contributing about 50 per cent of the region's gross domestic product (GDP).
Within Nigeria, according to the project prospectus, consideration for Lagos is anchored on the status of the omission economic and social blend; being the national and regional centre of commerce and industry.
According to the investors, Lagos has the recommendation for hosting the corporate headquarters of the major and medium oil and gas companies including world's biggest Exxon Mobil, Shell omission and indigenous oil an d service firms. Other consideration that recommend Lagos state include vibrant infrastructural amenities and facilities, including the country's busiest airports, elaborate marine port facilities and west Africa's biggest international markets.
Stakeholders, at media forum, have declared that they have determined that Lagos state's economy forms the hub of Nigeria's national economy.
Local consortium, Supra Energy an d Power City Limited, declared in Lagos that the project targets to create real estate solutions that would help meet oil and gas related industries business needs and objectives, while providing positive work environments for their employees.
"We strive to provide world class business space solution, luxury residences, networking opportunities and leading edge IT infrastructure for companies operating in Africa," the consortium stated.
This according to the promoters will entail investment of $1.8 billion or (N207) billions in building an exclusive city that restricts industry activities in 515 hectres of land.
To cover the changing needs of the industry, the Energy City, according to the consortium, will also accommodate ancillary service providers such as freight forwarders, banks, infrastructure agencies, IT companies, government agencies, the stock exchange and private agencies.
The enclave, when completed will place Lagos state in a better stead to compete for all the economic opportunities associated with the rapid growth of Nigeria's petroleum industry omission of major industrial and commercial concerns in the country.
The state may have also activated a concrete economic battle for its fair share of the nation's oil money by struggling to establish its environs as the prime destination for investment in critical sectors of the economy.
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In doing this, government of Lagos is not only laying foundation for the future but also solidifying its position as one of the most viable states in terms of considerable capacity for internal revenue generation and financial autonomy.
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