The Federal Government has begun the review of road concession programme under the Highway Development and Management Initiative (HDMI).
Special Adviser (Media) to the Minister of Works, Barr. Orji Uchenna disclosed this in a statement issued on Tuesday, February 13, 2024.
Minister of Works, Engr. David Umahi said the move was to smooth all contractual relations between the Government and concessionaires as well as to ensure efficient utilisation of the completed projects by road users, following the removal of the fuel subsidy and foreign exchange challenges.
Umahi during the meeting to rejig the operational model of the highway initiative, introduced parameters that would strengthen the quality delivery and management of road infrastructure under the Public Private Partnership model of road infrastructure development
He spoke at a meeting with the Public Private Partnership unit of the Federal Ministry of Works and Messrs. Africa Plus Partners Nigeria Ltd (APPNL) concessionaires for the Benin-Asaba and Lagos-Abeokuta road corridors in his office on 12th February 2024.
In the meeting, which had in attendance the team of the PPP headed by Ugwu-Chima Nnennaya (Mrs.) and the team of APPNL lead by Mr. Dipo Lawore and Mr. K. V. Rao, there were discussions on the way forward for achieving a more effective operational model for the HDMI programme and more efficient contractual relations between the Federal Government and Concessionaires.
The meeting which dwelt on the review of the project parameters for the Benin-Asaba and Lagos-Abeokuta road corridors as negotiated in 2022 by Messrs. Africa Plus Partners Nigeria Ltd (APPNL) was necessitated by the heightened inflationary pressures, exchange rate concerns, reduced vehicular traffic on the highways occasioned by the increase in fuel pump price.
Speaking further on the need for quality delivery of road projects and efficiency in project negotiation, the Minister listed what he termed Renewed Hope model of the Highway Development and Management Initiative (HDMI) and said the parameters would be finetuned, agreed upon, and adopted in all contractual relations between the Federal Government and concessionaires going forward.
He highlighted the parameters to include: ‘The design of the project to be in line with the specification of the Federal Ministry of Works and investor can only improve upon the design made by the Ministry.
“A reasonable construction period must be agreed upon.
“There shall be no variation on the project.
“100% of one carriageway must be completed before tolling by concessionaires.
“The business plan must be in line with the socio-economic dynamics.
“Terms of tolling of road projects must be in accordance with the Laws of the Federation, and standard contract conditions must be followed.
“Contingency and variation on Price (VOP) shall be utilized only by the express and written permission of the client. “Bill of Quantities shall be verified and adopted in line with the prevailing market prices.
“Road count on traffic shall be carried out by the investor and where such data has been provided by the client, it is the duty of the investor to accept or verify and where the investor accepts, it shall be binding on all.
“It shall be the duty of the investor to sensitize the public on the toll programme in every project.
“The client shall have the right to terminate the job of the investor for failure to comply with the time of road project completion.
“Every road construction for highways must be in accordance with the highway standard prescribed by the Laws of the Federation.”
In their separate responses, the team leader of the APPNL and the head of the PPP unit of the Federal Ministry of Works assured the Honourable Minister of their commitment to the innovative initiatives of the Federal Ministry of Works on road infrastructure and thanked the Minister for pointing out that there was a dire need to review not only the cost of the concessioned project but also the scope of the project to meet with the standard of road construction in accordance with the innovations introduced by the Ministry under the Renewed Hope administration of President Bola Tinubu
They expressed their commitment towards a robust negotiation on the project review that would lead to a financial close so that work could commence without further delay, they also promised to carry out further technical analysis on all the issues raised in the meeting and re-present same to the Honourable Minister for consideration.
