TheCable

The Lagos state government will hold a 24 per cent stake in Tafawa Balewa Square (TBS) and Lagos International Trade Fair Complex (LITFC).

Alex Okoh, director-general of the Bureau of Public Enterprises (BPE), disclosed this on Tuesday, at a virtual investors forum.

Under the arrangement, the Lagos government would contribute 24 per cent of the required investment in exchange for the same amount of shares in concession Special Purpose Vehicle (SPV) in partnership with the concessionaire.

Okoh said the concession would be for a period of 30 years, renewable by the federal government for another 30 year period.

“Should you emerge as the preferred concessionaire, we will negotiate with the Lagos govt. From that stage, Lagos will take 24 percent of shares with the LITFC or TBS,” he said.

The LITFC was originally developed in 1977 as a trade and promotion centre. Located beside FESTAC Town, along Lagos-Badagry expressway, with a total area of 300 hectares but only 117 of it will be the concession area.

A concession is a form of Public-Private Partnership (PPP) where a government-owned asset is being operated and maintained by a private investor for a period of time on terms contained in a concession agreement.

Amina Othman, head of public communications at BPE, had announced that the federal government will adopt concession of TBS, LITFC and the Calabar and Kano Special Economic Zones.

The development came after Babatunde Fashola, minister of works and housing, announced that the federal government will commence the procurement process for the concession of highways under the Highway Development and Management Initiative (HDMI).