FG to hand over sites in March, inaugurates 3 committees on highways’ concession


The Minister of Works, Senator David Umahi, has inaugurated three committees to fast-track the implementation of the Highway Development and Management Initiative (HDMI).

The programme, which is a Public Private Partnership ( PPP) arrangement in the construction, operations, and maintenance of highways,  is so designed that the emergent concessionaires will recoup their investments through the toll and non-toll revenues as may be negotiated.

A statement issued on Tuesday night by the Special Adviser to the minister,  Barrister Orji Uchenna Orji, stated that Umahi who inaugurated the committees assured that the highways would be handed over to concessionaires in March this year.

The Minister called on the committees to work effectively and concertedly bearing in mind the expectations of Nigerians, in terms of transparency, standard, and efficiency in contract negotiations.

He noted that contracts with some concessionaires had been consummated, but that the current economic dynamics and the new policy direction of the present administration would require a review of the scope of work and cost implications.

He charged the concessionaires to abide by the criteria set and the timeline for the projects.

“We own the design, you will own the cost of the project while we carry out verification on the cost of the projects; the idea is to scope the projects. We want to have a standard road infrastructure to toll. Our business is to ensure that your design conforms with the Ministry’s standard of design, that is why we are making the Director of Roads and Bridges of the Ministry the Chairman of the committee on Scoping and Design.

“It is very important that every project must have alternative routes.  The number of toll gates and toll stations will be determined by the Infrastructure Concession Regulatory Commission ( ICRC). We also have to put CCTV cameras, Solar Light, and Security on our roads. Whatever will make our roads safer is very important to us. All these must be considered as part of the business.

“The three committees set up by the Hon. Minister for the actualisation  of the Federal  Government’s HDMI programme are Scoping and Design;
Financial Due Diligence; and Agreement  Review.

“We must have a figure to begin to work with under the Due Diligence Committee, we want to hand over all these sites to people who are serious by the end of March 2024.  Enough of these meetings, enough of the bureaucracy.  I have given a template on how to review the agreement and I think the Legal Department of the Ministry can do this on their own.

“In all our biddings in  2024 going forward, every cost element must be disaggregated. The procurement law has set up profit for the contractors.  We will verify the cost in respect of concessionaires. We have to ensure that the cost you are putting will do the job. We don’t want you to engage and come back and say there is inflation after being engaged on the project.

“We have to ensure that concessionaires have all that it takes to do the job. The Ministry and  Concessionaires must ensure that they are on the same page so that the citizens will not suffer”,  he said.

The minister, however, expressed happiness for the progress made by Nine (9) concessionaires in finalising their designs and documentation to achieve a financial close by the first quarter of 2024 and charged them to diligently work with the Ministry’s committees for the final processes.

Earlier, the Director of Highways and Bridges, Engr. Awosanya Onatuga, said that the Directors and the concessionaires were ready to work concertedly to move the HMDI project forward.