Works Minister Sets Up Team For Value-added Concession

Minister of works, David Umahi, has inaugurated the contract management team (CMT) for Valued-added Concession, a category under the Highways Development and Management Initiative (HDMI).

The HDMI was created by the ministry to manage and develop the federal road networks, with the aim of attracting sustainable investment and funding in the development of road infrastructure and maximisation of the use of assets along the right of way (RoW).

The initiative is expected to, amongst others, bring order, accountability, and profitable entrepreneurship to the operations, management, and maintenance of Federal Highways.

Twelve roads were initially planned for concession under the first phase of the initiative, namely: Benin – Asaba; Abuja– Lokoja; Kano – Katsina; Onitsha – Owerri – Aba; Shagamu –Benin; Abuja -Keffi –Akwanga; Kano – Maiduguri; Lokoja – Benin; Enugu-Port Harcourt; Ilorin-Jebba; Lagos-Abeokuta; and Lagos-Badagry. However, only Nine (9) of the roads attained Commercial Close.

Umahi during the inauguration at the Ministry’s Conference Room yesterday in Abuja, charged the CMT to be proactive and guide contracts to financial close and project implementation, accordingly.

The minister who was represented by the permanent secretary of the ministry, Mr Mahmuda Mamman said the idea of including Senior Executive Management representation from each Concessionaire on the CMT is to ensure seamless workings and interactions. “I, therefore, wish to advise the Concessionaires to accord the CMT, of which they are already a part of, the maximum cooperation that is needed.

“As we are already aware, the Value for Money (VfM) generated through PPPs depends on the quality of the private partner and the government’s contract management systems and teams.

“I understand that it has been three (3) years of hard work by the Project Delivery Team (PDT) members of the Highways Development & Management Initiative (HDMI), most of whom are now being transmuted as members of the Contract Management Team (CMT). We expect that the same hard work you brought to bear on the Contract Preparatory Stages would be doubled at this critical stage of Contract Implementation.

“It is PPP’s best practice to have a Contract Management Team (CMT) and you have been carefully selected based on your potential and the value you bring on board. You are, therefore, the administrative personnel responsible for liaising with the Concessionaires on matters relating to the management of the Contract.

“I wish at this juncture, to thank the Infrastructure Concession Regulatory Commission (ICRC) for the planned Two-day training and interactive session for members of the CMT on effective & efficient management and monitoring of the implementation of the contracts. This is an invaluable contribution towards preparing the CMT for the task ahead.

“To the government side, please, accord this assignment the utmost attention it deserves and not be in the erroneous belief that these concessions (contract) will be self-regulating and self-reporting.

“Your terms of reference (TOR) will nonetheless be explained to you in due course, and it will be tied to the task of liaising with the Concessionaire on matters relating to the management of the Contract,” he stated.