FG, highway concessionaires review agreements to avert litigation
The Federal Government has launched a comprehensive review of the 2023 road concession agreements signed under the Highway Development and Management Initiative (HDMI). This move, according to the Ministry of Works, aims to ensure transparency, accountability, and value-for-money in ongoing Public-Private Partnership (PPP) road projects across Nigeria.
Key Road Projects Under Review
The review affects eight major routes spanning thousands of kilometers:
-
Benin–Asaba (125 km)
-
Abuja–Lokoja (195 km)
-
Onitsha–Owerri–Aba (161.2 km)
-
Shagamu–Benin (258 km)
-
Kano–Shuari (100 km)
-
Enugu–Port Harcourt (200 km) – with a 25-year concession term
-
Lagos–Ota–Abeokuta (80 km)
-
Lagos–Badagry–Seme Border (79 km)
Why the Review?
According to a statement by the Special Adviser on Media to the Minister of Works, Orji Uchenna, the review follows a two-day stakeholders’ meeting chaired by Minister of Works, Senator David Umahi, in Abuja. The minister cited ambiguities and flaws in the original agreements signed on May 23, 2023, and stressed the need to align them with current realities and the Tinubu administration’s policy direction.
“We are adopting a more realistic, transparent, and productive approach to financing road construction and maintenance through PPPs,” the statement read.
Major Concerns Raised
During the meeting, the Minister identified several key issues that need to be addressed in both the original and addendum agreements:
-
Put-Call Option Agreements
-
Scope of additional facilities
-
Performance security guarantees
-
Site encumbrances
-
Tolling structure revisions
-
Roles of independent engineers
-
Impact of alternate routes on project viability
Umahi emphasized the importance of harmonizing the agreements, especially where contractors were already present on-site before concessionaires signed contracts.
New Standards and Compulsory Addenda
A key outcome of the review is the introduction of mandatory addenda that all concessionaires must adopt. These include:
-
CCTV surveillance
-
Solar-powered street lighting
-
Rest areas and safety infrastructure
-
Clear procedures for dispute resolution and contract termination
“These are no longer optional. They are now compulsory as part of our effort to enhance road user safety and travel comfort,” Umahi said.
Conditions for Taking Over Project Sites
The Minister also clarified that any concessionaire wishing to assume control of a project must:
-
Terminate any existing contractor agreements mutually
-
Show proof of financing capacity
-
Pay outstanding debts to current contractors
-
Demonstrate both technical and financial competency
“The Ministry will not remove any contractor unless these conditions are fully met,” he warned.
Stakeholders, MDAs Align on Reforms
The session was attended by representatives from key MDAs, including the Ministries of Finance and Justice, Debt Management Office, BPP, ICRC, and concessionaires such as Africa Plus/BAAECC, Africa Finance Corporation, Morta-Engil, and Greg Jane Int. Ltd.
The Minister of State for Works, Hon. Bello Muhammad Goronyo, praised Umahi’s reform efforts, describing them as “patriotic and grounded in due process.”
The revised agreements will be circulated to MDAs within seven days for final feedback. Concessionaires are expected to either accept or flag grey areas for clarification.
FG Commences Emergency Repairs on Kaduna-Abuja Expressway
In a separate development, the Federal Government has ordered emergency repairs on a failed portion of the Kaduna–Abuja Expressway, following public complaints over deteriorating conditions and travel delays.
Acting on President Bola Tinubu’s directive, the Minister of State for Works, Hon. Bello Goronyo, inspected the damaged section near the Federal Cooperative College at Abuja Junction, Kaduna.
“This is more than just a road—it’s a lifeline for Northern Nigeria’s economy,” Goronyo said.
He confirmed that emergency repairs have commenced, emphasizing that the government will not wait for another rainy season or wave of complaints before taking action.
Road Infrastructure Remains Top Priority
Despite fiscal challenges, Goronyo reiterated President Tinubu’s commitment to delivering quality and safe roads, as part of the Renewed Hope Agenda.
“We are prioritising key roads that directly affect the lives of everyday Nigerians,” he said, assuring commuters that the ministry is working to improve travel experience and promote national connectivity.
Post Comment