Minister of works and housing Babatunde Fashola has charged Highways Development and Management Initiative (HDMI) concessionaires to set the pace for the second phase of the project.
Fashola made the appeal at the commercial close and contract execution ceremony of the Phase 1 of the value-added concession (VAC) road corridors under the HDMI in Abuja
Fashola made the remarks during the signing of the value-added concession under highway development and management initiative.
Fashola said the signing is another demonstration of the ministry’s innovative commitment to fixing the federal road network through a multi-pronged approach.
He said the highways development initiative was created to develop and manage the federal road network with the objective to attract sustainable investment and funding in the development of road infrastructure across the Nation.
The managing director of Infrastructure Concession Regulatory Commission (ICRC), Michael Ohiani, in his address, stated that the primary objective of pilot scheme is to leverage private sector investment to improve facilities and operations on selected routes; infrastructure development by applying a commercial approach that bridges the funding gaps in annual capital budget expenditure, thereby reducing the dependency on budgetary allocations.
On his part, director overseeing the office of the permanent secretary, Engr. Folorunsho Esan, stated that as the ministry attains its commercial height, it is the expectation that in no distant time, and in line with the agreed timelines, the financial close time will be reached to enable the execution of the project accordingly.
The six successful concessionaires for the execution of the concession contract include: African Plus Partner Nigeria Limited Consortium (Benin Asaba Expressway and Lagos Otta Abeokuta Road); Avia Infrastructure Services Ltd Consortium (Abuja – Lokoja Road); Enyimba Economic City Development Company Consortium (Onitsha Owerri Road and Enugu Port Harcourt Highway); Africa Finance Corporation Consortium (Shagamu Benin Road and Lagos-Badagry -Seme Border Road); Dafac Consortium (Kano -Shuari Road);, and China Harbour Engineering Company Limited (CHEC) for (Keffi-Akwanga-lafia-makurdi Road) respectively.
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