Johannesburg - South Africa's push into Nigeria is set to receive a boost with the building of the 80 000m2 Tinapa shopping, entertainment and leisure complex in Cross River State in the southern part of the country.

Phase one of the project, which will cost $120 million according to the South African project managers Atos KPMG Consulting, will be completed by September 2006.

The first ground was broken on January 15 and the Nigerian government has already started building the support infrastructure. Atos KPMG and KPMG Nigeria are managing the project for the Cross River State government. The state is home to 3 million people.

Dominic Hoole, of Atos KPMG, said 60 percent of the funding, or $72 million, would be through equity taken up by the Nigerian private sector, with the balance ($48 million) borrowed from Nigerian and South African commercial banks.

Hoole was in Nigeria last week meeting potential investors. He and Nigerian officials were in South Africa last year presenting the project to local financial institutions. As yet, none of the funding had been finalised, he said in a telephone interview from Nigeria.

Hoole said the project's retail component - which will cover 40 000m2 or the size of five-and-a-half soccer fields - had already been presented to major South African retailers.

"We have done four roadshows in South Africa with the Cross River State government. There was a lot of positive comment but no commitment yet as companies still had to do their due diligences. 

"There have been a lot of verbal 'yeses' though," he said.

A senior local banking source said three South African institutions had been shortlisted for participation in the project, and although all negotiations were still at an early stage, the development was seen as "very exciting".

Two major retail chains spoken to by Business Report would not comment on the project, which will comprise four 10 000m2 shopping emporiums focused on motor vehicles, fashion and textiles, electrical goods and foodstuff.

The balance of the space will be made up of restaurants, bars, cinemas and other entertainment facilities.

Hoole said a 40-strong delegation made up of South African retailers, journalists and financial institutions would visit the site in early March when the development would be formally presented to Nigerian president Olusegun Obasanjo.

The first phase of the development will comprise the shopping centre, two hotels, a water theme park and a golf driving range.

Phase two, which has not been costed yet, will include another four hotels, ecotourism and adventure sport facilities.

Myles Hopkins of South African consulting firm Phila Empowerment Enterprises visited Cross River State as a guest of its governor, Donald Duke, at the end of January.

He welcomed the project, saying that his firm had been asked by the state government to provide tourism, travel, hospitality and support services training for the development.