FESTAC phase II project expected to cost N401bn

The concessionaire, New Festac Development Company limited has said that the land reclamation and infrastructural development of the second phase of the FESTAC Town is expected to cost N401bn.

The company’s spokesperson, Mr. Uche Edeani, said the preliminary stage would cost about N100.25bn ($500m), while the main construction work would be done at the rate of N300.75bn ($1.5bn).

He said that for the first phase, which primarily covers the de-grooving, dredging, land reclamation and soil improvement, they estimate $500m; while the phase two, which involves infrastructural construction work, will need approximately $1.5bn. The cost for the third phase, which is the building development, is not yet concluded.

The Federal Government, through the Ministry of Lands, Housing and Urban Development, had last year signed an agreement for the concession of the development of the second phase of FESTAC Town. The first phase was developed to host the delegates to the second World Festival of Arts and Culture in Lagos in 1977.

According to the Minister of Lands, Housing and Urban Development, Mrs. Akon Eyakenyi, efforts to reclaim and develop the outstanding 1,126 hectares of land, known as FESTAC Phase II, started in the early 1980s and remained unsuccessful because of the huge cost of the project.

Eyakenyi said the expected earnings for the government from the project were estimated at N25.765bn as premium for the over 30 years of concession and an additional N150m in annual ground rent.

Eyakenyi had also noted that the realisation of the concession would transform the part of Lagos called FESTAC Town into a modern city and yield great benefits both in the infrastructural and socio economic development of Lagos State.

Source – PUNCHNG