The Federal Government on Wednesday approved the development of phase II of FESTAC town in Lagos under a public-private partnership arrangement.
Minister of Lands, Housing and Urban Development, Ms Ama Pepple, made this known while briefing newsmen on the outcome of the weekly Federal Executive Council meeting which was presided over by President Goodluck Jonathan.
She said that the proposed Phase II FESTAC project, which would yield N25.7 billion to the Federal Government, would involve the development of the remaining 1 126 hectares of land out of the 2 000 hectares acquired for `FESTAC 77’.
She noted that only a portion of the land initially acquired was developed while the remaining was abandoned due to lack of funds, adding that this prompted the ministry to move to develop the phase II through the new arrangement.
``Council approved that we can concession the area we call FESTAC phase II to a company called New FESTAC Property Development Company.
``The area involved, is a 1 126 hectares.
``And we estimate that when it is completely reclaimed, sand-filled, because it’s swampy; it’s a swampy area, we will be able to create at least 7,000 plots and then the new area, the FESTAC phase II will be like a new city with houses, shopping malls, schools, and things like that, police station, health centres, you know the normal things you expect in a new city.’’
Pepple said the Council approved that the remaining portion of land should be developed after reclamation was done by the private company to fast-track the project.
``This is a way of developing the economy without dipping hands into government purse.”
Pepple also explained that the concession of the project, granted to four companies, would span over a 30-year period with three years moratorium.
She said that government would be generating an annual ground rent of N150 million from the FESTAC II project when completed.