FG getting full value from its land at Tarkwa Bay
to Samsung will be reimbursed by FGN, making FGN the primary investor in this Yard. The investors in the Yard are LADOL, its stakeholders and the FGN. Samsung was a Contractor and a tenant of LADOL, not an investor in the Yard. The Yard itself is an important local content legacy capacity development that is a key near-term benefit left in Nigeria from the Egina project.
Thirdly, though LADOL was entitled to collect the contracted income from that sublease, it did not and instead allowed Samsung to hold back 90% of the rent due. USD 40.5 million was used for the construction of the shipyard, thereby leaving LADOL with USD4.5m for five years, i.e. USD 900,000 per year, which is less than the current rent paid to NPA per year by LADOL.
Fourthly, the allegation that LADOL failed to obtain consent from NPA for the sublease granted to Samsung is false. This was a term of the Lease. LADOL made disclosure to NPA of the sublease. NPA approved the sublease in a letter dated 12th March 2014. Samsung tried to deal directly with NPA on several occasions, leading NPA to write to Samsung in a letter dated 16th November 2017 informing them that they must deal directly with their landlord, GRML.
NPA has, up until the recent misunderstandings, been a fair and just landlord, protecting the rights and investments of its tenant, LADOL. NPA has also played a significant role in levelling the playing field in the maritime, industrial and petroleum sectors - ensuring that all Nigerian companies can participate. It is therefore perplexing that the writer of this article claims that NPA would now undo all this good work by punishing LADOL for participating in the market and attempting to drive them out of business for the benefit of a foreign contractor that has taken billions of dollars out of Nigeria.
LADOL and its stakeholders are compliant, law abiding and committed to continuing their vision and mission - which will continue to benefit all its stakeholders including NPA and FGN.
LADOL Group