INSIDE:
CONSTRUCTION INDUSTRY 100
OIL TRADE
Playing Smart, Sharp Practices FG accuses Shell of crude oil theft, demands $406 million
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he Nigerian government is demanding $406.75 million minimum from Shell Data services Company. Petroleum Development Company of The consortium of experts was able to Nigeria Limited and its surrogate Shell track the global movements of the Western Supply & Trading Limited over country’s hydro-carbons including crude oil alleged crude oil theft. and gas with the main purposes of The amount, according to court papers in identifying the companies engaged in the Lagos, represents the shortfall of the practices that led to missing revenues from money paid by the multinational oil firm in crude oil and gas exports sales to different the account of the Nigerian government parts of the world. In reconciling the export with Central Bank of Nigeria, for crude oil records from Nigeria, with the import lifted in 2013 and 2014. records at ports in the United States of Government lawyer, Professor Fabian America, the experts found mind boggling Ajogwu accused the Anglo-Dutch discrepancies. company of not declaring or underThe Nigerian government averred for declaring crude oil shipments during the instance that on 6th of January, 2013 the period, following forensic analysis of bills defendants lifted crude oil using the vessel of lading and shipping documents, Ajogwu, AUTHENTIC and shipped same to BP Oil armed with sworn affidavits of three Supply of 28301 Ferry Road, Warrenville, United States of America based Illinois, USA at the port of Chester, professionals, claimed that Shell cheated Pennsylvania, United States of America. Nigeria of the revenue. The shipment had the Bill of lading Among the three professionals employed number ALMYSVDM161212A3. This by the Federal Government of Nigeria are: particular shipment was not declared to the Professor David Olowokere, a US citizen relevant authorities in Nigeria, resulting in who is the lead Analyst at Loumos Group the shortfall of 660,712 barrels of crude oil LLC, a technology and oil and gas auditing in the value of $72,678,320 as revenue to firm based in United States of America and the Government. Jerome Stanley, a counsel in the law firm of On 3 January, 2013, Shell and its Henchy &Hackenberg, a law firm based in surrogate company lifted crude oil that United States of America and head resulted in the shortfall of 979,031 of the legal team engaged by bar rels in the value of Loumo Group LLC. $107,693,410 On the 14th of The third professional is Micheal December, 2014, Shell also lifted Kanko a citizen of the USA and crude oil using the vessel EAGLE resident of the state of Arizona , TUSCON and shipped same to who is the founder and the current Shell Deer Park of 5900 Texas Chief Executive Officer of Trade Charles O. Holliday 225,Deer Park, TX77536,USA at 16 | www.cedmagazineng.com
the port of Houston, Texas, United States of America with Bill of lading number AETK0909US14. The shipment was not declared to the relevant authorities, resulting in the shortfall of 499,048 barrels of crude oil in the value of $54,895,280 as revenue to the Federal Government. Shell, with its allied company, was also alleged at three different times to have shipped crude on board EAGLE TUSCON, EAGLE SEVILLE, OVERSEAS EVERGLADES, that resulted in the shortfall of 3,697,737 barrels of crude oil. This brings the total value of all the shortfall to $406,751,070 On 21 January ,2016 the Federal government through its legal representative wrote a letter to the defendants drawing their attention to the discrepancies. Government asked them to clarify the discrepancies, with documentation, as a prelude to the repayment of the revenues and debt they now owe the government. Till date Federal government has not received from the defendants any payment pursuant to the said letter nor the requested documents. Nigeria’s government averred that it has suffered huge and enormous financial loss as a result of the defendants underdeclaration of the value of the crude oil they lifted and exported to the United States of America. Nigerian government now seeks a court order compelling the two companies to pay into the Federal government of Nigeria account with the Central Bank of Nigeria, the sum of USD 406,751,070 being the total value of the missing revenue from the shortfall /undeclared/under -declared crude oil shipments of the country, made by the companies to United States of America. Government also demands interest payment at 21% per annum on the sum of $406,751,070 until the entire sum is liquidated. Shell in addition is being asked to pay general exemplary damages in the sum of $406,751,070 and the cost of instituting the legal action. The presiding judge, Mojisola Olatoregun Isola has adjourned till 20th of October 2016 for mention of the case. Nigeria has also sued Chevron, Total and Agip asking for a total of $12.7 billion over alleged non-declaration of some 57 million barrels of crude shipped to the United States between 2011 and 2014. The oil firms are among up to 15 oil majors targ eted by the Nig erian government for the recovery of $17 billion in deprived revenue.
HILTON SIGNS 350-ROOM HOTEL AGREEMENT IN LAGOS; LOCALISING BUILDING MATERIALS - NIA
October 2 - 9, 2016 www.cedmagazineng.com
A New Initiative FHA plans to construct rent-toown housing scheme in Nigeria
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A New Home fo The Union
AU Integrated Services Center to be constructed in Ethiopian capital
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groundbreaking ceremony was conducted by the African U n i o n ( AU ) f o r t h e construction of a service c e n t r e c h r i s t e n e d AU Integrated Services Center, at the AU headquarters in Addis Ababa, Ethiopia. The centre which is going to be carried out by a Chinese firm- Anhui Foreign Economic Construction Company (AFECC) is set to include among others things, an accreditation facility, a cafeteria and the AU Archives and Exhibition Center. Several facilities and services will be provided in the new center that will aid the AU manage its summits, meetings and conferences better and faster. Nkosazana Dlamini-Zuma, chairperson of the AU Commission, Erastus Mwencha, Deputy Chairperson of the AU Commission, Kuang Weilin, Head of
Chinese Mission to AU, and Jiang Zhaoyao, CEO of AFECC, other officials of the pan-African bloc, diplomats and dignitaries were all in attendance during the groundbreaking ceremony in Ethiopia's capital city. The development is projected to provide much-needed space for the preservation of AU's heritage in the form of the rich archival materials of PanAfricanism, African people's struggles for independence and self-determination and evolution of the African Union. On the exhibition space, materials from African history, myriad publications by AU and its specialized agencies will be displayed. "Indeed, this is an achievement and we would like it in both physical and digital forms to become an attraction for scholars and historians from across the Continued on page 2
he Federal Housing Authority (FHA) in collaboration with the Federal Government has plans to construct the rent-to-own housing scheme targeting the low income earners to boost affordable housing program in Nigeria. The construction of the houses is aimed at converting the rent paid by tenants and make them the owners of the houses. According to Professor Mohammed Al-Amin, the Managing Director/Chief Executive of FHA, about 50,000 members of 800 cooperative societies nationwide have expressed their interest in FHA Social and Co-operative housing programme. The main goal of the FHA scheme is to provide affordable housing to most vulnerable groups in the society such as low-income and middle low-income earners. In fact, the Authority has launched special packages for the nongovernmental, Community-based org anizations and Faith-based organization as the Authority is at the moment working closely with research institutions to establish local construction materials. The prospective home-owners will occupy the houses and later embark on gradual expansion as their incomes improve. FHA says that it is willing to supply primary infrastr ucture beginning with its location State to other States countrywide. Additionally, authority is also initiating a savers scheme that will enable workers to own houses in the formal and non-formal sectors of the country's economy.
A two bedroom house
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REAL ESTATE
DEVELOPING STORY
Crystal Lagoons Drives the Development of Urban Beach Life in South Africa
A New Revolution Innovation firm Crystal Lagoons triggers real estate revolution in Africa
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u l t i n a t i o n a l i n n ova t i o n company Crystal Lagoons has recently announced its involvement in real estate projects worldwide that will represent $10 billion in investment over the next 10 years. The company is in discussion with property developers for a number of projects across South Africa and the wider continent, two of which have a total value of R3 billion and will be situated in prime real estate in Johannesburg. These developments will bring the unlimited size bodies of crystal clear water to urban areas, adding an idyllic beach lifestyle to the world's major cities and enabling a wide variety of water sports, including swimming, kayaking and paddle boarding. "Crystal Lagoons' award winning technology, which is patented in 160 countries, has revolutionized the real estate market in every country it has entered. When it comes to building a
A New Home for The Union continent," said Dlamini-Zuma. She further applauded China for their unending support to AU's projects that indeed strengthen the mutual friendship, solidarity and prosperity with Africa. "We are particularly grateful for the longstanding and ongoing friendship and 2 | www.cedmagazineng.com
Crystal Lagoon, location need not dictate what is possible." says Alastair Sinclair, Crystal Lagoons' Regional Director for Africa. "We have the opportunity to bring this game-changing concept to South Africa's inland metropolitan areas, as a Crystal Lagoon can be constructed in the middle of cities miles away from the coast, at very low construction and maintenance costs. The addition of "The World's Top Amenity" has resulted in unprecedented increases in sales rates and prices of properties," he added. Crystal Lagoons boasts 400 projects in 60 countries, and it's the patented sustainable technology used that makes it particularly appealing for developers needing a water and energy efficient amenity to enhance their projects. Pricewaterhouse Coopers' (PwC) "Real Estate 2020: Building the Future" identifies that global megatrends such as rapid urbanization, technology and
cooperation with the government of the People's Republic of China, who continue to render support to the African Union, including the Conference Center and Offices inaugurated in 2012 and now the AU Integrated Services Center," she said. AFECC was founded in 1992 and has
sustainability will drive growth in the real estate industry across Africa over the next four years. In South Africa specifically, it is estimated that 71% of South Africans will live in urban areas by 2030, with more people moving to major cities such as Cape Town and Johannesburg each year. "Sustainability is a key factor driving all new developments in Africa, and as a company, Crystal Lagoons places enormous emphasis on solving some of the world's greatest challenges such as water and energy scarcity. Crystal Lagoons can use any type of water - fresh, salt, or brackish (which has no alternative use), providing a sustainable solution for the efficient use of water resources," adds Sinclair. The technology requires 100 times less additives and half the energy of conventional swimming pools. When a Crystal Lagoon is filled with fresh water, it uses 30 times less fresh water than a golf course of the same size and half the fresh water of a park of the same size. Property developers in urban areas are now able to offer a lifestyle comparable to that of a beach resort, paired with an energy and water efficient technology which makes it a more sustainable amenity than a golf course or park. Additionally, Crystal Lagoons technology is effective in lowering the carbon footprint of real estate developments, as the lagoons can be incorporated into the heating and airconditioning systems of surrounding buildings and can generate a reduction in electricity consumption by up to 50%. "We look forward to bringing Crystal Lagoons to the people of Johannesburg, and to other big cities needing a recreational amenity that improves the urban lifestyle of South Africans, and increases the value of the properties around it," says Sinclair.
successfully undertaken more than 50 large and medium projects over the past two decades. Jiang Zhaoyao, CEO of AFECC expressed his companies' commitment to accomplish the latest project with quality and deliver it as per the schedule.
Localising Building Materials NIA seeks investment in local building materials' production
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he Nigerian Institute of the world; but right now, we want to Architects says it is seeking to bring into full force the capacity that we achieve total local production have to be able to domesticate some of of hardware and components required our industries, particularly architectural in the building industry, particularly in products. upcoming mass housing projects to be "If you look at the finishing of most developed across the country by private buildings, you find that a lot of products used are sourced from outside developers and the government. the shores of this country. We are about The President, NIA, Mr. Tonye to embark on massive housing Braide, said at a meeting to announce the upcoming West Africa Architecture development to be able to meet up with Festival being championed by the the housing deficit; and to do this, we institute that it had become necessary to are saying that if we must meet up with issues of national development, we harness the country's potential. According to Braide, the current must be able to manufacture or at least e c o n o m i c r e c e s s i o n o f f e r s domesticate the process." Braide said the WAAF 2016, which professionals an opportunity to look inwards and develop new strategies for will hold in Port Harcourt, Rivers State from October 24 to 28, with the theme, growth. He said, "With the economic depression that we are currently going through, the time has come for us to reorganise ourselves in the comity of nations. Nigeria stands in the South East zone of the West African sub-region. That is a very strategic place, if you look at the map of Africa, the shape is like a pistol and we are at the trigger, at a point where we can initiate change. "We have for so long depended on oil and gas, which come from the Niger Delta and they have been fed into the global value chain and used to built a lot of economies across President, NIA, Mr. Tonye Braide
'Harnessing the great African potential in global value chain', would help professionals to establish an architectural value chain that would set a path towards rapid recovery from the current economic recession. "As architects, we cannot quite get involved in manufacturing, but we are involved in building of houses. So, we say that the components and architectural instruments that endow these houses should be domesticated," he said. The festival is expected to feature the exhibition of architects and students' works, building products, arts and crafts, and cultural displays, among others. Renowned architects such as Demas Nwoko, Remment Luca Koolhaas and Diebedo Kere are also expected to speak at the festival. Other speakers are the Catholic Bishop of Sokoto, Matthew HassanKukah, Olisa Agbakoba, and political economist, Prof. Pat Utomi. Braide said as part of the process of domesticating the production of building components, the NIA would promote the establishment of a light industrial park through its Rivers State chapter. The Chairman, WAAF Planning Committee and Chairman of the N I A , R i v e r s C h a p t e r , M r. Emmanuel Dike, said activities such as the festival were needed now to boost economic growth. Punch www.cedmagazineng.com | 15
Developing Story ENERGY
REAL ESTATE
The Power Challenge Nigeria electricity challenge man-made -Fashola Head of Trade Mission, United Kingdom to Nigeria, Mr. Carl Woolf (left); Development Director, South Energyx Nigeria Limited, Pierre Edde; CEO, AKD Solutions Limited Uk, Mr. Akin Thomas and the Director, Synargict Connect Limited, Mr. Eisen Chak, during an investments Trade Mission from United Kingdom Team of Investors to Eko Atlantic City Projects, in Lagos Head of Trade Mission, United Kingdom to Nigeria, Mr. Carl Woolf (left); Development Director, South Energyx Nigeria Limited, Pierre Edde; CEO, AKD Solutions Limited Uk, Mr. Akin Thomas and the Director, Synargict Connect Limited, Mr. Eisen Chak, during an investments Trade Mission from United Kingdom Team of Investors to Eko Atlantic City Projects, in Lagos
Moving On Up How we plan to make Eko Atlantic city West Africa’s financial hub, by developer
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he developers of the new city being built from reclaimed land adjacent to Victoria Island – Eko Atlantic City has released key features of the proposed West Africa’s new financial hub, accommodating the headquarters of the sub-region’s leading banks, financial institutions and international corporate companies. According to South Energyx Nigeria Limited (SENL), a subsidiary of the Chagoury Group, a part of the new smart city has been reserved for the development of a business district. This Business District will be approximately 650,000 square meters and will feature the Eko Boulevard, a two kilometer long, 60 metre wide central boulevard similar in size and look to New York’s Fifth Avenue and Paris’ ChampsÉlysées. During a visit to the city by a business delegation from the United Kingdom, Mr. Pierre Edde, Development 14 | www.cedmagazineng.com
Director, South Energyx Nigeria Limited, said the Business District is designed to play host to a multitude of headquarters for companies within Nigeria. Mr. Pierre Edde further went on to say, “The Eko Atlantic City Business District is a strategic and prestigious location for offices, with a state-of-the-art 24/7 infrastructure network, including 21st century communications, smooth transport system and uninterrupted
electricity, making it a compelling place to work.” Upon completion of the city, Eko Atlantic will be home to 500,000 residents with an expected commuter volume to exceed 300,000 people. One of the delegates, Akin Thomas, Chief Executive Officer of AKD Solutions Ltd, described Eko Atlantic City as an amazing project, and commended the developers for their passion and commitment to Nigeria’s economic development. Another delegate, Eisen Chok, Director, Synergict Connect Ltd expressed delight at the progress made so far on the project. Speaking to the same, Fatai Amoo, Head of Sales and Marketing, Chris Joe Energy said he was highly impressed with the vision behind the Eko Atlantic project. “This project is indeed revolutionary and the innovative approach used to construct such city is a true testimony to future human habitat development not only in Lagos Nigeria but across the globe,” he said. He also commended South Energyx Nigeria Limited’s unique waste disposal management strategy, saying that this is how waste management
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ormer governor of Lagos State and Minister of Power, Works and Housing, Babatunde Raji Fashola said, yesterday, that Nigeria's electricity problem is man-made. Fashola, who spoke at the maiden edition of Made in Nigeria Festival taking place at Eko Atlantic, Lagos, said his blueprint for the power sector is in three phases: power-generation, steady supply of power and uninterrupted power supply. He has also pledged to ensure the power sector works to the point where Nigeria has uninterrupted power supply. Speaking on man-made challenges, Fashola recalled a challenge with a project and it took only a phone call to Globacomn Chairman, Otunba Mike Adenuga to resolve the matter. "We had an issue some time ago, during an electrification project. We got to this expanse of land and we were told that the land where we needed to lay electricity cable belongs to 'the spirit.' Indigenes of that area scared the contractors away by invoking curse on the project. I was briefed about this and we started negotiation with them. You won't believe this but, by the time we finished the negotiation, the 'spirits' collected money and we were able to continue with
Babatunde Fashola
our project. Another instance was where we had a telecommunication mast obstructing electrification of a village. The former regime and the telecommunication company were exchanging letters. All I did was call Adenuga and the mast was removed in a week…" Speaking further, Fashola said since 1960, Nigeria generated 5,074 mega watt of power for the first time in February 2016. "We have never generated up to 5,000 mega watt of power since 1960, but we
generated 5,074 mega watts of power in February, 2016 and this was made possible because we have began systematic repair of our power-generating equipments which is in the phase one of our developmental plans'. Fashola disclosed that he and his team has a developmental plan consisting of power generation which is focused on maximising all available power-generating components by repairing them. The second phase is steady supply of power while the third phase is uninterrupted power supply…" The minister was speaking as a member of panel consisting of Mrs Adeola Sumola of Bello Osagie & Associates, Ms. Chantel Abdul MD/CEO Mojek International and Mr. Mofid Karameh Chairman Mikano Group. Dr. Ogho Okiti, publisher of Economics Times, Abuja was the Moderator. Fashola reiterated government's resolve to get electricity to the rural areas by engaging universities located in rural areas. 'We are deepening rural electricity, we are using universities as anchors for these rural areas. These universities are located in the rural areas. In the universities where we are car r ying out this r ural electrification programmes, we are challenging the students in Electrical Engineering Departments to develop a power plan to add to what we have on ground already before they graduate from that university''. Mrs Ibukun Awosika Chairman of First Bank PLC spoke at the second session on the topic '' Empowering the Made-inNigeria Economy: Private Sector's role in Infrastructural Revival in Nigeria. She went on to say ''Building infrastructure is how well you can achieve the goals you set for yourself''. We have two kinds of infrastructurethe Hard Infrastructure which are the roads, transportation, e.t.c and Economic Infrastructure. We need to develop several infrastructures around'' ''I noticed that most of the bags our children use in this country comes from abroad. I just said to myself, a textile company can just develop these bags and our economy will be better for it, this will count as infrastructural development. We need to create infrastructure support for industries in our economy'' Mrs. Awosika www.cedmagazineng.com | 3
INFRASTRUCTURE
PROPERTY
Recession Blues Developers set to raise property prices
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ith the current economic situation and the attendant rise in the prices of building products, the cost of properties may increase anytime from now, developers have said. According to findings by our correspondent, developers may increase the prices of properties put up for sale by between five per cent and 10 per cent. The prices of building materials, including iron rods, sanitary wares, tiles, roofing sheets and quarry products have in the last few months risen, with cement, a major building material, rising by 44 per cent to 50 per cent in the last one month. Properties on the outskirts of Lagos, the commercial nerve centre and the country's property market hub, currently sell at N7m for a one-bedroom flat; N12m for twobedroom flat; and N13.5m for threebedroom flat, on the average. In the more urbanised areas such as Lekki, properties are going for as high as N40m for a three-bedroom apartment and N50m upwards for duplexes and detached houses. Most developers, according to findings, are keeping the prices low for now as the market remains slow. "But going forward, it will no longer be sustainable if prices of building construction products such as cement are not adjusted. We cannot sell below our cost prices," the National General Secretary, Real Estate Developers 4 | www.cedmagazineng.com
Association of Nigeria, Mr. Akintoye Adeoye, said. He added that with the percentage increase of cement as well other imported building components, which had also risen due to foreign exchange scarcity, developers would be compelled to increase the prices of their products soon. He said, "Cement is a major component in construction, and with the rate of increase in price, there is no way it won't affect the cost of production, and definitely the cost of production will be paid by the consumer. Developers have to sell to make profits and can't sell below the cost price. "I recently bought a bag of cement for N2,500, the same product I bought for N1,600 a month ago; that is N900 difference. Someone has to pay for that. The cost of a building will depend on the overall cost of production, but we may consider increasing our selling prices by between five and 10 per cent." Adeoye said developers were, however, considering a reasonable percentage due to the fall in the purchasing power of Nigerians as well as rising inflation. The Chief Executive Officer, Top Services Limited and immediate past President, African Union of Architects, Chief Tokunbo Omisore, said the cost of labour had been reviewed upward and most developers were at a loss on how to make returns on their investments. He said, "Once cement and other
building materials go up in price, labour automatically goes up. A labourer who carries cement bags cannot do so knowing that one bag is in excess of N2,500 and then accept to be paid N1,000 per day. When he lifts like 10 bags of 50kg each, that is N25,000; he must earn at least 10 per cent of that per day which is N2,500. The bricklayer will not want to be left out, he is the skilled labourer. "Of course, there is no money to support that. So, labourers will not do a good job, they may not do much or may be disgruntled over payment. So, rather than do 100 blocks a day, which is the norm, he will want to spend more days so that he will earn more. The developer. on the other hand, will be in a hurry to finish his construction because the naira is falling daily. The sector is in a crisis." Omisore, who is also a retail mall developer, said that the current price regime of building materials had become a yardstick for every other price to be reviewed upward. The Chief Executive Officer, P r o p e r t y g a t e D e ve l o p m e n t a n d Investment Plc, Mr. Adetokunbo Ajayi, said developers who were currently involved in construction were struggling to recoup their investments. He explained, "Development is basically an assemblage of input whether you are coming up with residential, office or retail development; if the prices of those inputs begin to go up, no matter how much a developer desires to be fair, he will be forced to increase his selling price. Once you have the input that makes up a product rise, you need to recoup your funds. "Cement is a major component, from your substructure to your decking; you are basically dealing with cement-based products. Your shell, which is made with cement, is about 55 per cent of your construction before you get into finishing such as plastering. The percentage rise in the price of cement is over 40 per cent; so, definitely it will have a huge impact." According to Ajayi, unless there is a decline in costs in other areas such as land, the rise in the prices of houses will be inevitable. "Effectively, the 44 per cent increase in the price of cement may not translate to the same percentage rise in the cost of houses, because those who already have stock of houses may consider selling at the old prices. But, most developers are looking for a way to fix competitive prices so that they can sell, because if they can't
President Buhari and Governor Ayade at the groundbreaking ceremony
For A Good Course! Cross River highway project threatens over N300b donor funds to Nigeria
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igeria may lose about $1 billion (over N300 billion) grant from the United Nations Programme on Reducing Emissions from Deforestation and Forest Degradation (UN-REDD) and others if the proposed 260-kilometre super highway project of Cross River State is executed . The planned construction, environmentalists feared would destroy virgin vegetation and forest along the road route. The state government had on January 22, 2016 revoked the Certificate of Occupancy of the land along the highway from Esighi, Bakassi Local Government Council to Bekwarra Local Government Council. This covers a distance of 260 kilometres approximately and having an offset of 200 metres on either side of the centre line of the road and further 10 kilometres. The state government's action has generated concern from m a n y stakeholders,
which include the NGO Coalition for Environment (NGOSE), whose objectives, among others, include promoting environmental sustainability through education and community participation and to conducting research on environmental issues. A member of NGOSE Board of Trustees, Dr. Odigha Odigha told newsmen in Calabar that Nigeria's plan to access UN-REDD and other programme funds on climate change is in danger due to inconsistent government policies. According to the environment expert, Nigeria has endorsed a lot of international treaties and domesticated some of them, which include diversity climate, the climate change agreement lately and the UN-REDD programme using Cross River as a pilot. Odigha maintained that it is only proper and s h o w o f integrity that the nation honours the agreement that
it has endorsed. "Cross River State is a pilot site to the REDD programme, which is operational here and as I speak we are at the stage of submitting the REDD strategy and there is a validation going on that will open Nigeria up to accessing some good funds and some other things," Odigha added. He explained: "The UN-REDD programme, talking specifically is in its readiness stage. To get to this stage, I know very authoritatively that Nigeria has received $10 million to get ready, held meetings, began to put structures together to monitor the forest. A series of meetings has been holding in Calabar in this regard. Last month, we were privileged to attend the UN-REDD meeting where they are trying to get inputs from the people. When these strategies are constructed, Nigeria can now access a substantial amount of funds."
Odigha Odigha.
ATLANTIC CITY
opined. The Made in Nigeria Festival comprises a 3-day Summit, an exhibition, a technology exposition and a daily showcase of Nigeria's finest foods and flavours, movies, fashion, music and art. Over 5,000 Nigerians have already signed up to be part of this year's festival. The grand finale of the festival is a special celebration of Nigeria's independence comprising a phenomenal showcase of music artistry that would also take place at Eko Atlantic City. The Made In Nigeria Festival is being organized by the MaIN Group, a collaboration of private sector organisations. Board of Advisors of the initiative include: Prince Adesegun Oniru, Mr. Aliko Dangote, Dr. (Mrs.) Stella Okoli, Mr. Ronald Chagoury, and Senator Oluremi Tinubu
Proposed Dual Carriage Super Highway
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OIL AND GAS REPORT
REAL ESTATE
Liberia Up Its Power Liberia commissions a 10MW Heavy Fuel Oil power plant
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Zimbabwe On Housing Zimbabwe unveils $100 Million housing project
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he government of Zimbabwe is set to partner Chinese investors to construct $100 million worth of houses made from pre-fabricated materials as it seeks to meet its Zim-Asset target of building more than 300 000 housing units in the next five years, Local Government, Public Works and National Housing Minister Saviour Kasukuwere, has said. Speaking during a tour of a model house which will be used as Urban Development Corporation (UDICORP) offices in Stoneridg e, Minister Kasukuwere said the Chinese technology was now being localised with the Chinese firm working in Dzivaresekwa. "We are moving into this kind of housing which has been approved by the Standard Association of Zimbabwe and also accepted by our ministry. "It is good for a family - three bedrooms. The cost is about $30 000 and as we go forward, we believe that their prices has to come down and be able to provide more houses. The structure can be put up in six days and if we roll out this programme our thinking as Government is that we should be able to accommodate a serious number of our people and be able to provide descent shelter," he said. He said the pre-fabricated house comes 44 | www.cedmagazineng.com
with its own sewer system which is environmentally acceptable and uses solar. Minister Kasukuwere said his ministry was negotiating with Chinese firms and the first phase of the housing scheme will see $100 million worth of houses being constructed. "We are happy that the Chinese have already set up shop in Zimbabwe and most of the material is being manufactured locally. We believe this is a technology transfer opportunity for our young people to learn and we believe going forward it will spread as people will be able to do this quite easily in the various sectors. "On durability maybe a 100-200 years. They are saying you can live in this house for 250 years so I do not know who can live for 250 years," he said. Minister Kasukuwere said Udcorp has been tasked to regularise Stoneridge to ensure that the area has accessible roads and other amenities. Harare South legislator Cde Shadreck Mashayamombe said Stoneridg e residents have been living in the area without basic services. "We are happy as this area's leadership that Udicorp will take over development. "We have asked Government to make sure that such houses are built in this area," he said.
iberia's President Ellen Johnson Sirleaf has commissioned a 10MW Heavy Fuel Oil power plant, which has now lit the Snow Hill community in Gardnerville. The US$27m power plant is located at the Liberia Electricity Corporation (LEC) to Bushrod Island outside Monrovia. However, Japanese government has been the major sponsor of the project through the Japan International Cooperation Agency (JICA). President Sirleaf admitted that, the government cannot do everything. However, she is optimistic that her administration's commitment will ensure that critical projects like energy are well implemented for the benefit of the public and the nation at large. According to President Sirleaf, the Mount Coffee hydropower plant rehabilitation project will come online by December 2016 with an aim of increasing energy generation capacity. "I am pleased to see some of the c o m mu n i t i e s i n c l u d i n g Ke s s e l l y Boulevard, Snow Hill and its environs being connected to electricity," said President Ellen Johnson Sirleaf. "This will improve the living condition of the people," she added. Moreover, the newly commissioned HFO power plant is expected to bring power operated by LEC to 38MW in total. LEC is currently operating below 28MW. According to LEC officials they have confirmed that at the moment the power utility is operating below 28MW, but pledged that by September 2016, an additional 10MW will be in operation with the assistance of the Japanese government. "And by mid-December this year, there will be additional 22MW to make it a total of 60MW to boost the country's energy capacity," said one of LEC officials. Nonetheless, the public electricity firm is aiming to achieve a total of 88MW of power and an increase of 24MW of power over pre-war status. Japan's ambassador to Liberia, His Excellency Yoshimura said that, the rehabilitation of the power system as well as many other projects currently being undertaken is a clear demonstration of Japan's commitment to realise a "Quality Africa".
Looking To 2017 Oil executives see 2017 as the year of recovery, Deloitte Survey Finds
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he two-year downturn in the oil and gas industry may be coming to a close. An annual survey released by Deloitte, shows approximately 59% of O&G professionals believe the recovery already has begun or will begin in 2017. While the current state of the market still leaves cost-containment initiatives a priority, executives nonetheless showed renewed confidence in an industry recovery. Those who responded pointed to expectations of rising prices, a return to increasing capital expenditures and headcount as drivers of their optimistic outlook. "This recovery in many ways mimics the pattern of the recovery from the Great Recession," said John England, vice chairman, Deloitte LLP and U.S. and Americas Oil and Gas Leader. "If last year was the year of hard decisions, 2017 will be the slow road back. Companies are generally optimistic that prices will rise to a more sustainable level next year; however, they understand that even if we see an uptick in price, the industry likely won't fully recover until 2018 or beyond." Deloitte's survey reveals that from upstream to downstream, most respondents expect to see an increase in capital expenditures next year. In fact, the upstream sector, which took the hardest hit in this downturn, is the most optimistic about a recovery, followed by the midstream sector. The study also
reveals a number of trends in opinion that offer insight into the direction the industry may be headed: Most executives believe that $60 per bbl is an important threshold for a revival in U.S. oil and gas exploration and production activity. Seventy-one percent of professionals believe it is possible for the 2016 average price per bbl to reach $40-60, or for prices to at least rise to that range by the end of the year (61% ). Almost half of the respondents think that prices will continue to rise, reaching $60-80 by 2017 (44%) or by 2020 (46%). Nearly one-third of the respondents (28%) foresee crude oil prices returning to $80-100 for WTI and Brent by 2020. Natural gas price outlook: Stable to mild optimism for 2017-2020. For 20172020, 70% of the respondents expect prices to range between $2.50-3.50 per MMBtu, with a third anticipating this price band in 2017. Survey respondents expect Asian natural gas prices to be much higher than Henry Hub to the end of 2016-2020, which creates opportunity for U.S. LNG exporters. Of professionals surveyed, 81% believe international prices will range from $5-10 per MMBtu. However, an increasingly optimistic view (29%) is for prices to be in the $10-15 per MMBtu range by 2017 to 2020. X-factors could dampen optimism for recovery. When asked which policy or geopolitical issue would most affect their
company, survey respondents cited OPEC production decision as having the most impact on the upstream sector, but U.S. tax and policy decisions are next, outranking several prominent international issues. OPEC's ongoing influence on crude oil prices remains the most important concern for 45% of professionals. Next areas of greatest concern are changes in U.S. tax policy and regulation (38%) and environmental and local stakeholder issues (34%). While the survey did not break out specific regulations, professionals see a possibility of profound energy policy changes to be enacted, and for the scope and impact of those changes to depend on the outcome of the presidential elections in November 2016. Upstream priorities: Responding to the challenges, shifting to a recovery mindset. The findings showed a shift in expectation about the impact of shortand long-ter m cost containment initiatives from 2016-2017. Long-term cost-containment initiatives, a hallmark of the oil and gas industry expansion before the downturn, are considered the most impactful, as shown by an increase from 42% of respondents to 50% for 2017. Short-term cost-reduction efforts are seen as less impactful in 2017 - a key indicator of an expectation of recovery. In addition, executives expect capital expenditures committed to exploration activities to rise in 2017 (42%) - more evidence for an optimistic outlook for the industry's longer-term recovery. In 2017, 50% of respondents see better operating efficiencies and enhanced well productivity as the biggest opportunity for cost reductions. This is a shift away from head count, portfolio changes and activity reductions. Although more than half of the respondents believe 40% or more of cost reductions are short-term, while 64% see operating efficiency gains as the best path to sustainable cost reductions, followed by contract r e n e g o t i a t i o n s. W h i l e 4 3 % o f respondents expect more personnel reductions in 2016; next year, only 31% believe there will be ongoing layoffs. In fact, 36% of the respondents expect hiring will restart in 2017. For 2016, 42% expect capital expenditure to continue declining; but, in 2017, the outlook
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CONSTRUCTION INDUSTRY 100
PEOPLE
OIL AND GAS REPORT
changes as 43% of respondents anticipate capital expenditure to rise in 2017 - optimism for a recovery next year is returning. The downturn moves to the midstream sector. "Contraction in the upstream sector has begun to wear on the midstream sector, once thought to be somewhat immune from commodity price volatility," said Andrew Slaughter, managing director of the Deloitte Center for Energy Solutions, Deloitte Services LP. "However, the sector's fee-based contracts are at risk of being renegotiated or challenged in bankruptcy court, given the financial stress of upstream producers. We already are seeing movement toward consolidation, and more could be on the way. Professionals also see infrastructure building both in the U.S. and in Mexico as the biggest area of midstream opportunity." Midstream finds its own set of challenges and its own opportunities. The midstream sector has many opportunities for profitable growth in the burgeoning U.S LNGexport industry, and the U.S. Gulf Coast region is seen as the area that will present the most opportunity, according to 63% of respondents. Sixtytwo percent expect a moderate level of consolidation in both 2016 and 2017 (59%), but when asked about whether the midstream sector would consolidate significantly in 2017, affirmative responses increased from 15% to 23%. However, midstream limited partnership (MLP) rollups into C-corporation structures were seen as unlikely (28%) or moderate (52%). Cost reduction (52%) and regulation (41%) are seen as the
midstream sector's biggest challenges. Optimism is most clearly seen in the results related to rising capital expenditures. For 2016, only 26% of the respondents saw a net increase in capital expenditures, but that cohor t's expectation rose to 41% for 2017, with 28% of that group citing a modest 10% uptick. Regulatory challenges for downstream refining and marketing offset by export opportunity. Regulation (39%) and costs (35%) top the list of the biggest challenges facing this highly regulated, capital intensive segment. Despite regulatory challenges, the outlook for refined products exports next year is seen as positive, as U.S. crude oil exports have offered new competition. Capital expenditures will likely increase from 2016 to 2017, according to 33% of survey respondents, but by no more than 10% year over year. Slightly fewer (30%) expect a net capital expenditure reduction next year. The return of optimistic sentiment indicates that the industry downturn may finally be over, and suggests low to modest industry growth over the next year, with a full recovery by the end of the decade. Slaughter concluded, "The midstream sector is looking to expand its crude oil capabilities and rebuild infrastructure, and the downstream sector is looking for more demand growth. As optimism returns, as it has, the list of opportunities should be given another look, for it shows the direction the industry will likely take in the years to come." Culled from JNW
Access To Water How sunlight can provide low-cost access to clean water
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ater can be disinfected if left for as little as six hours in intense sunlight, yet many living in the world's poorest countries do not adopt solar disinfection despite their tropical climate. One in 10 people lack access to safe water, and an estimated 3.4 million people die each year from waterborne diseases. 6 | www.cedmagazineng.com
People living in the most effected parts of the world, such as sub-Saharan Africa, risk serious illness from microbiological pathogens extracted at sources many miles from their homes. Ceramic filtration is an inexpensive method that costs a family in Nicaragua as little as 0.034 US cents to treat a litre of water at a rate of 20 litres per day, using a single filter for up to three years,
according to the NGO Potters for Peace. But according to Kevin McGuigan, associate professor at the Royal College of Surgeons Institute, solar disinfection (SODIS) is a lower-cost way to cleanse wa t e r f o r t h e m o s t d e p r ive d communities that cannot afford even the cheapest high-tech solutions. "Solar water disinfection [is] the most cost-effective method over the course of a year," said McGuigan. "Per person, per year, the cost is around 63 cents. That is just the cost of getting the plastic bottle. Very often you can get the plastic bottle as refuse, rather than actually purchasing the contents. From a cost perspective, it is very attractive." Since 2011, Helvetas Swiss Intercooperation and the ETH-Water Research Institute Eawag have promoted the use of solar disinfection. Together, they argue that pathogenic microorganisms in water are vulnerable to two effects of sunlight, specifically UV waves and high water temperatures that kill harmful bacteria. McGuigan said the challenge facing research institutions working to spread solar disinfection is on the ground in countries that have yet to adopt the practice as a common solution. "When we first introduce it into an area, there's a certain level of disbelief and maybe scepticism, because they're thinking 'Can that work?' What we have to do is show them that there is a benefit. If they can't afford other solutions, solar disinfection is a very viable option," he said. Other more labour intensive solutions include water flocculation, a method that adds a binding agent to dirty water to separate infected substances from drinkable liquid, which has been promoted by companies such as Proctor and Gamble (P&G). The cost of using flocculation products however is around US$5 per person per year, almost eight times the cost of adopting solar methods. The average monthly wage for someone working in sub-Saharan Africa meanwhile is around US$50 to US$100. Solar disinfection is recognised in Continued on page 11
Catarina de Albuquerque, 2016 IWA Global Water Award winner
Prize For Water Human rights champion claims IWA Global Water Award 2016
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atarina de Albuquerque of Portugal has been named the winner of the 2016 IWA Global Water Award. The award recognises the role she has played as the driving force behind the recognition of the Human Rights to Water and Sanitation. "I'm honoured to receive this award from within the water community, it will raise awareness of the critical water and sanitation needs of billions of people," said de Albuquerque. "As a teenager I did
volunteer work in the then existing Lisbon slums. I was profoundly disturbed by the injustices and inequalities I saw. Since then I felt that I wanted to contribute to changing the world and the underlying causes of the injustices I saw". From 2008 to 2014 Catarina became the first UN Special Rapporteur on the right to safe drinking water and sanitation, having played a pivotal role in the recognition of water and sanitation as human rights by the UN General
Assembly in 2010. Her work helped ensure the rights to water and sanitation were incorporated into the formal Sustainable Development Goals 20152030 document approved by the UN General Assembly. This followed a four-year period during which she presided over the negotiations of the Optional Protocol to the Inter national Covenant on Economic, Social and Cultural Rights at the United Nations, a treaty allowing people to bring complaints regarding human rights violations against their governments to the UN. "Catarina has been instrumental in supporting the water sector towards universal access and to not 'leave anybody behind'," said Ger Bergkamp, Executive Director IWA. "Her work has inspired IWA to develop practical guidance on the implementation of the Human Right to Water and Sanitation." After successfully completing her second and final term as UN Special Rapporteur in December 2014, Catarina was appointed Executive Chair of Sanitation and Water for All (SWA) global partnership which has the objectives of achieving universal access to clean water and adequate sanitation for all, always and everywhere. The IWA Global Water Award is awarded by a panel of experts from across the water cycle, and recognises the exceptional contribution made by an individual to improve sustainable water and sanitation globally. It is awarded every two years at the IWA World Water Access Tot Water Continued from page 6
countries that continue to benefit from cost-effective solutions to clean water access, however, McGuigan said more involvement at state level is required to raise public investment in rural areas where it can have the most impact. "The World Health Organisation and UN I C E F b o th p ro m o te s o l a r disinfection as an appropriate i n t e r ve n t i o n f o r p o s t - d i s a s t e r situations," added McGuigan. "The greater task now is getting it recognised at a governmental level from the various countries in sub-Saharan Africa.�
A community in Indonesia using solar disinfection to treat water
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ENERGY - SOUTH AFRICA
CORPORATE INTERVIEW
Eskom CEO Brian Molefe
Power Target Eskom secures 75% of borrowing requirements for 2016/17
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tate-owned power utility Eskom has secured 75% of the required funding for its 2016/17 capital expenditure programme after signing the first $500-million, or R7-billion, credit facility with China Development Bank (CDB). The parastatal and the CDB signed the short-term credit facility agreement at Eskom's Megawatt Park headquarters on
Monday, signalling the first of what Eskom CEO Brian Molefe described as a catalyst partnership for the utility's many power projects and initiatives. CFO Anoj Singh said the group required R69-billion in funding for the 2016/17 financial year, of which 75% had been secured to date, with the $500million credit facility bringing the total secured to R51-billion.
Gas Target
South Africa to name preferred bidders for gas projects in March
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outh Africa will announce preferred bidders for multi-billion dollar gas-topower projects by the end of March as part of efforts to diversify electricity production away from more environmentally damaging coal plants, a 10 | www.cedmagazineng.com
government document shows. Tender documents in May last year asked consortia to submit plans to build South Africa's first liquefied natural gas (LNG) import terminal, gas-fired power plants, storage facilities and transmission pipelines, according to a department of energy memorandum due to be released on Monday and seen by Reuters. Exxon Mobil and Royal Dutch Shell are among more than 100 bidders for the gas projects, which South Africa hopes will add more than 3 000 MW to its current power production capacity of 42 000 MW. A separate 600 MW gas-fired power plant is also being developed in parallel by the
This meant that Eskom could confidently wrap up the year's funding requirements through market-directed bond issuance and two to three smaller agreements with local banks, the discussions for which were currently under way, he told Engineering News Online on Monday. "This loan will also aide us in ensuring that we complete the current capital expansion programme and further stabilise Eskom's liquidity position," Molefe added. The agreement is expected to cement Eskom's relationship with the Chinese bank, with around $5-billion still under negotiation between the utility and CDB. "We are pleased to see the conclusion of this first agreement with CDB and to lay the platform for future cooperation with our Chinese partners," he commented. The CDB had set aside around $20billion for energy projects in South Africa, Henan province Vice Governor Zhang Weining said. Eskom requires some R369-billion in working capital over the next five years as part of its capital programme to complete its ambitious Medupi coal-fired power station project, in Limpopo, its Kusile coal-fired power station, in Mpumalanga, and the Ingula pumped storage scheme, on the border between the Free State and KwaZulu-Natal. department of energy's independent power producers unit. South Africa already imports gas from neighbouring Mozambique and could buy LNG from major African producers such as Nigeria and Angola, analysts said. A drop in global energy prices has encouraged South Africa to push ahead with gas-to-power projects as it looks to quickly increase electricity supply capacity following nationwide outages last year. "The current global gas and LNG market conditions are expected to represent an opportunity for South Africa to achieve an economically beneficial pricing arrangement in the oil and gas cycle," the document said. The department of energy has a preference for floating regasification and storage facilities due to the speed with which they can be built. The most likely location for new gas-fired power plants are at Richards Bay and Coega, the document said. South Africa has separate plans for huge nuclear power expansion which could cost
is currently an integral part of the Crossrail project in the UK capital. It operates in more than 80 countries around the world and employs some 40,000 people. 5. Skanska Based in Sweden, the multinational operates in the residential, commercial, residential and infrastructure sectors. In the US, the company is known for constructing the Meadowland Sports Complex, home to the NFL's New York Jets and Giants. Skanska employs more than 50,000 people.
Top 10 construction companies in the world 10. Laing O'Rourke The British-based company is young compared to some of its fellow top-tenners, but has quickly expanded, working on several high-profile projects in the last decade, including Ascot Racecourse and Heathrow Airport Terminal 5. Oversees it is currently involved in the huge Al Raha beach development in Abu Dhabi. 9. Royal BAM Group Founded in 1886 in Holland, the company built Ajax football club's Amsterdam Arena in its native Netherlands in 1996. Bataafsche Aanneming Maatschappij, from which the company abbreviates its name, translates as Batavian Construction Company for Construction and Concrete Projects. Around 27,000 people work for the group. 8. Kiewit Nebraska-based Kiewit is unique within this list in that it is owned by its employees, meaning almost all its projects are staffed by shareholders. The company was named number three in Engineering News-Record's Top 400 Contractors of 2013. 7. Bouygues Construction The French company employs more than 130,000 people in 80 different countries. In the mid 1990s it expanded into telecoms, which became another major revenue stream. Its subsidiary, Colas Group, specialises in road construction and rail track construction. 6. Balfour Beatty The multinational was founded in 1909 by George Balfour and Andrew Beatty. Headquartered in London, the company
4. Hochtief Focusing on infrastructure projects, the German company operates in the US through its Turner subsidiary. Hochtief employs around 80,000 people and celebrates its 140th anniversary this year. Spanish contractor Grupo ACS has owned a majority stake in the company of 50.16 percent since 2011. 3. Bechtel The largest US contractor has worked on such high-profile projects as the Hoover Dam completed back in 1936, the Trans-Alaska Pipeline system in the '70s and more recently the 'Big Dig' Central Artery project finished in 2007. The company employs more than 53,000 people around the world. 2. Grupo ACS The Spanish contractor was formed in 1997 through the merger of two other construction companies. It has grown through several high-profile acquisitions including that of Hochtief. The company has worked on the Alqueva Dam in Portugal and Torre de Cristal and Torre Espacio skyscrapers in its home country. 1 Vinci The 115 year-old French giant reports the largest revenues of any privately-owned construction company in the world, a position it has achieved through shrewd acquisitions and effective delivery of high-profile, large-scale infrastructure projects such as the Gariep Dam in South Africa, completed in 1971 and the Stade de France. The arena was built for the 1998 football World Cup, and now serves as France's national Stadium. Operating worldwide, the Group employs more than 183,000 people according to the last available figures (from 2011). The Group is currently working on the â‚Ź440 million express-lane highway system in Atlanta, Georgia and the Wheatstone Liquefied Natural Gas Project in Australia. www.cedmagazineng.com | 7
HOSPITALITY
INFRASTRUCTURE
Power Initiative Liberia commissions a 10MW Heavy Fuel Oil power plant
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Kenya Thika Superhighway. A similar project is set for Nairobi-Mombasa road
Eye On Africqa US construction firm shows interest in funding Kenya's Six-Lane highway
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onstruction of Kenya's six-lane highway moved a notch higher after Kenyan and US government and a California-based construction and engineering firm Bechtel held a successful meeting. Head of the US government's Overseas Private Investment Corporation (Opic) Elizabeth Littlefield and Bechel signed what they called a letter of interest regarding Kenya's SixLane highway that is Nairobi-Mombasa highway project on the sidelines of the US-Africa Business Forum in New York early this week. The is one of the largest world's largest engineering and construction companies that is have been currently involved in the financial discussion and they have the higher possibility of clinching the deal as they are well established in terms on construction using the latest technology. Currently the US ExportImport Bank has thrown its weight behind Bechtel to ensure that they secure investment for the 485kilometre expressway. The anticipated project is expected to ease up the
transport situation between Kenya's main port of Mombasa and cities throughout East Africa. The project is expected to boost the cur rent g overnment's agenda in streamlining the transport industry which is currently struggling. "With the support of the US government agencies such as Opic and the Export-Import Bank, we can provide solutions to move this critical project forward quickly with a high standard of quality and safety," said Andrew Patterson, Bechtel's regional president for Africa. The Obama administration's move to help Bechtel secure a deal to build the road coincides with the opening in Nairobi of an Opic office. The agency's new regional headquarters in Kenyan capital Nairobi will facilitate US businesses' participation in infrastructure development throughout East Africa. The ministry of transport announced the tender and is expedite to cost the government about 14 million dollar.
President Uhuru Kenyatta
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iberia's President Ellen Johnson Sirleaf has commissioned a 10MW Heavy Fuel Oil power plant, which has now lit the Snow Hill community in Gardnerville. The US$27m power plant is located at the Liberia Electricity Corporation (LEC) to Bushrod Island outside Monrovia. However, Japanese government has been the major sponsor of the project through the Japan International Cooperation Agency (JICA). President Sirleaf admitted that, the government cannot do everything. However, she is optimistic that her administration's commitment will ensure that critical projects like energy are well implemented for the benefit of the public and the nation at large. According to President Sirleaf, the Mount Coffee hydropower plant rehabilitation project will come online by December 2016 with an aim of increasing energy generation capacity. "I am pleased to see some of the c o m mu n i t i e s i n c l u d i n g Ke s s e l l y Boulevard, Snow Hill and its environs being connected to electricity," said President Ellen Johnson Sirleaf. "This will improve the living condition of the people," she added. Moreover, the newly commissioned HFO power plant is expected to bring power operated by LEC to 38MW in total. LEC is currently operating below 28MW. According to LEC officials they have confirmed that at the moment the power utility is operating below 28MW, but pledged that by September 2016, an additional 10MW will be in operation with the assistance of the Japanese government. "And by mid-December this year, there will be additional 22MW to make it a total of 60MW to boost the country's energy capacity," said one of LEC officials. Nonetheless, the public electricity firm is aiming to achieve a total of 88MW of power and an increase of 24MW of power over pre-war status. Japan's ambassador to Liberia, His Excellency Yoshimura said that, the rehabilitation of the power system as well as many other projects currently being undertaken is a clear demonstration of Japan's commitment to realise a "Quality
Worthy, Smart Investment Hilton Signs Agreement on 350-room Hotel at Lagos Airport
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ilton Worldwide has announced the signing of a management agreement with a Nigerian firm, Quality Inspection & Testing Services Limited (QUITS), to open a 350guestroom and suite hotel at Lagos' Murtala Muhammed International Airport, Nigeria. The agreement, which was signed at AHIF 2016 in Rwanda, is set to open in 2023 and joins Hilton's growing African portfolio of more than 80 properties trading or in the development pipeline, which will see Hilton more than double its presence across Africa in the next three to five years, said the hotel group in a statement yesterday. "With a population of more than 16 million, Lagos is the seventh-fastest growing city in the world and the second largest in Africa, with much of the nation's wealth and economic activities concentrated here," said Patrick Fitzgibbon, Senior Vice-President, Development, EMEA, Hilton Worldwide. "Strong growth is forecast for both domestic and international travellers using Murtala Muhammed International Airport, so this exemplary new hotel will be well placed to meet traveller's needs, offering an unparalleled level of design, comfort and service," he added. The hotel will be situated within close
proximity to Ikeja, the capital of Lagos State, as well as the passenger terminals at Murtala Muhammed International Airport, which services travellers flying to hundreds of destinations around the world. Mr. Sam Iwuajoku, Chairman and CEO of QUITS, said: "The signing of the agreement to open Hilton Lagos Airport is testament to a period of exciting growth and development for Lagos. "Our plans to build an exceptional hotel at the international airport will revolutionise the traveller experience and also offer a state-of-the-art choice
Patrick Fitzgibbon
for conferences, meetings and events. "We look forward to a very successful collaboration with Hilton Worldwide on this outstanding development." Hilton Lagos Airport will comprise 350 guestrooms, of which 72 are suites, an executive floor and multiple food and beverage outlets, including a restaurant serving international cuisine; a specialty restaurant; a fashionable rooftop cocktail bar; and a hip night club. An elevated pool deck, with lavish gardens and a striking horizon pool overhanging the side of the property will provide breathtaking views of the surroundings and a unique leisure experience for the airport property. The hotel will also feature a spa and fitness centre. According to the statement, business travellers and event planners will benefit from a wide choice of professional facilities across the 2,600sqm event space, including a 1,350sqm ballroom and 500sqm junior ballroom. "Hilton Lagos Airport will further solidify our presence in Nigeria and be a great asset to our Hilton Hotels and Resorts properties trading or under development in Africa," said Jim Holthouser, Executive Vice-President, Global Brands, Hilton. "We have great confidence in this growing market and are proud to be pioneering exemplary guest experiences across the continent with our range of Hilton brands." Hilton is set to more than double its presence in Africa in the next three to five years to more than 80 hotels and is focused on further development prospects across the continent, entering new countries while also growing in areas with an existing Hilton presence. This signing is in addition to the recent signing of Legend Hotel Lagos Airport, Curio Collection by Hilton, also with QUITS, with an additional 76 guest rooms to be added, bringing the room count up to 130 keys. These properties represent the two most recent hotels signed at Lagos Airport at the same time. The Curio Hotel, due to open in 2017, will be the first within the airport environment giving guests and airline passengers alike unrivalled ease of access to the airport's facilities. www.cedmagazineng.com | 9