The Federal Government has introduced new conditions for the tolling of the Benin-Asaba and Lagos-Abeokuta Expressways.
According to the government, toll collection will only commence once 100 percent completion of one carriageway is achieved. These conditions have been established following a renegotiation process with Africa Plus Partners Nigeria Limited, prompted by factors such as heightened inflation, exchange rate concerns, and reduced vehicular traffic due to the increase in the pump price of Premium Motor Spirit.
The government has emphasized that strict adherence to other conditions, including project design, approved construction period, and absence of variations, is essential. The Minister of Works, David Umahi, introduced these new parameters as part of the Highway Development and Management Initiative (HDMI), aimed at enhancing the quality and management of road infrastructure. The objective is to ensure efficient utilization of completed projects by road users.
In a statement released by the Minister’s Special Adviser on Media, Uchenna Orji, it was highlighted that the discussions aimed to establish a more effective operational model for the HDMI program and foster efficient contractual relations between the Federal Government and concessionaires.
The statement reads, “To revamp the operational model of the Highway Development and Management Initiative, the Minister of Works has introduced parameters that will strengthen the quality delivery and management of road infrastructure under the Public Private Partnership model known as Highway Development and Management Initiative. These parameters will ensure efficient utilization of completed projects by road users.”
The Minister further outlined additional parameters to be refined, agreed upon, and implemented in all future contractual relations between the Federal Government and concessionaires. These include alignment of business plans with socio-economic dynamics, adherence to federal laws for tolling road projects, compliance with standard contract conditions, and the requirement of express written permission for contingency and price variation. The use of Bill of Quantities in line with prevailing market prices and road traffic counts carried out by investors were also emphasized.
The Minister emphasized that it is the duty of the investor to sensitize the public about the toll program for each project. Additionally, the client has the right to terminate the contract if the investor fails to meet the project completion deadline. Furthermore, all highway constructions must adhere to the standards prescribed by federal laws.
The team leader of Africa Plus Partners Nigeria Limited expressed gratitude to the Minister for highlighting the need to review both the cost and scope of the concessioned project to meet road construction standards set by the Ministry. The team committed to engaging in robust negotiations to facilitate a financial close, enabling work to commence promptly. They also pledged to conduct further technical analysis on the issues raised during the meeting and present their findings to the Minister for consideration.
