Minister of works David Umahi has said politicians criticising the ongoing Lagos-Calabar Coastal highway project are ignorant of the workings of the project initiative and funding plan.
Umahi who spoke through his special adviser on media Orji Uchenna Orji in a statement said the project is being executed under Engineering, Procurement and Construction plus Financing (EPC +F) financing model.
He said, “The Lagos-Calabar Coastal Highway project is being done under EPC +F. What does this type of funding entails? This is a project financing mechanism in which EPC+F contractors also arrange financing for the project. EPC+F is Engineering, Procurement and Construction plus Financing. Engineering here includes design and specification.
“This initiative provides a fixed price, fixed date, and transfers risks to the contractor. This type of funding requires only a counter- part funding from the Federal Government. Such funds are sourced by contractors where they have confidence in the economic policies of the government, which essentially entails allowing the participation of the private sector in the road infrastructure development through PPP or EPC+F.”
“No patriotic Nigerian should discourage this kind of project where funding is substantially from the contractor. There is no doubt that Mr. President is aggressively tackling the backlogs of uncompleted road projects.
“In the 2023 supplementary budget, Mr. President approved funds for intervention on the over 260 dilapidated roads nationwide.
The 2024 appropriation made provision for capital investment on our critical roads across the six geo-political zones of Nigeria.
“The minister has already made a great difference in the road infrastructure development roadmap of this administration through his new innovations on road construction and rehabilitation, his power of supervision, and his contract negotiation power which is second to none in the history of the Federal Ministry of Works. He has been touring around and supervising the various ongoing projects of the federal government, and the difference is already there.
“The people are testifying of the quality and speed of road projects being executed by the Renewed Hope Administration. He has proven track records on road infrastructure development. He is not into rhetoric like many politicians who talk high but can do only less. The administration of President Tinubu is doing roads that will stand the test of time. The roads he is fixing will facilitate economic recovery,” he said.
