• Thursday, May 30, 2024
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FG to review Benin-Asaba, Lagos-Abeokuta road contracts

FG to review Benin-Asaba, Lagos-Abeokuta road contracts

The Federal Government has begun to review the project parameters for the Benin-Asaba and Lagos-Abeokuta road corridors as negotiated in 2022 by Messrs. Africa Plus Partners Nigeria Ltd (APPNL).

David Umahi, the minister of works, disclosed this during a meeting with the public-private partnership (PPP) unit of the ministry and delegates from Messrs. APPNL in Abuja. According to him, the parameters were imperative in strengthening the quality and management of road infrastructure under the (PPP) model of road infrastructure development, known as Highway Development and Management Initiative (HDMI) and ensuring efficient utilisation of the completed projects by road users.

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The review, according to him, was necessitated by the heightened inflationary pressures, exchange rate concerns, and reduced vehicular traffic on the highways occasioned by the increase in the fuel pump price of petrol.

Speaking on the need for quality delivery of road projects and efficiency in project negotiation, the minister said, “On the renewed hope model of the Highway Development and Management Initiative, the parameters would be fine-tuned, agreed upon and adopted in all contractual relations between the Federal Government and concessionaires going forward.

He highlighted the parameters to include 100 percent completion of one carriageway before tolling by concessionaires. Also, the business plan must be in line with the socio-economic dynamics, terms of the tolling of road projects must be under the laws of the federation, strict compliance with standard contract conditions, bill of Quantities must align with prevailing market prices.

“The design of the project must align with specifications of the federal ministry of works and investors 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, contingency and variation on Price (VOP) shall be utilised only by the express and written permission of the client, 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.

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“It shall be the duty of the investor to sensitise 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 under the highway standard prescribed by the laws of the federation.”