…AGREE TO EXPEDITE ACTION ON BENIN-ASABA/LAGOS-ABEOKUTA ROAD
By Dele Ogbodo
The Federal Government through the Ministry of Works and Messrs. Africa Plus Partners Nigeria Ltd (APPNL), on Monday 12, February 2024 expressly resolved with the commitment towards a robust negotiation on the Benin- Asaba, Lagos-Abeokuta road project deal.
This positive development is being ramped up with a view to mutually close the financial deal on a win-win deal between Federal Government and the Concessionaire so that work will commence on the 2 corridors without further delay.
Recall that the Minister of Works, Engr. David Umahi, in his determined efforts towards rejigging the operational model of the Highway Development and Management Initiative (HDMI), introduced parameters that will strengthen the quality delivery and management of road infrastructure under a Public Private Partnership (PPP) model.
According to him, this will ensure efficient utilization of the completed projects by road users.
The Minister made the disclosure at a meeting with the PPP unit of the Ministry and Messrs. Africa Plus Partners Nigeria Ltd (APPNL), concessionaires on the Benin-Asaba and Lagos-Abeokuta road corridors in his office in Abuja.
In the meeting, which had in attendance the team of the PPP headed by Mrs. Ugwu-Chima Nnennaya and the team of APPNL lead by Mr. Dipo Lawore and Mr. K. V. Rao, had discussions on the way forward for achieving a more effective operational model for the HDMI programme and more efficient contractual relations between both parties.
The meeting 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 of Premium Motor Spirit (PMS).
On the overarching need for quality delivery of road projects and efficiency in project negotiation, the Minister listed what he termed Renewed Hope model of the 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 carriage way must be completed before tolling by concessionaires.”
According to him, the business plan must be in line with the socio-economic dynamics, adding that the terms of tolling of road projects must be in accordance with the laws of the Federation, and standard contract conditions must be followed.
He added: “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 Ministry assured the Minister of their commitment to the innovative initiatives of the Ministry on road infrastructure.
They thanked the Minister for pointing out that there was 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.
Moving forward, 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, promising to carry out further technical analysis on all the issues raised in the meeting and re-present same to the Minister for consideration.
