The Minister of Works, David Umahi, on Tuesday inaugurated three committees to fast-track the implementation of the Highway Development and Management Initiative (HDMI), a Public, Private Partnership ( PPP) arrangement in the construction, operations and maintenance of highways in the country.
The programme expects concessionaires to recoup their investments through toll and non-toll revenues as may be negotiated, a statement from the ministry said.
Speaking during the event, Umahi harped on the need for the committees to work effectively, bearing in mind the expectations of Nigerians in terms of transparency, standard and efficiency in contract negotiations.
He noted that contracts with some concessionaires had been consummated, but said that the current economic dynamics and the new policy direction of the present administration would require a review of the scope of work and cost implication.
He charged the concessionaires to abide by the criteria set and the timeline for the projects.
“We want to have a standard road infrastructure to toll. Our business is to ensure that your design conforms with the ministry’s standard of design, that is why we are making the director of roads and bridges of the ministry to be the chairman of the committee on scoping and design.
“We don’t want to do just a patch on the road and give it to the public for you to toll. The public will resist. We want to have a standard road to toll.
“We have to provide alternative roads because by law you cannot toll road if there is no alternative route to it . It is very important that every of the projects must have alternative routes,” he stated.
The number of toll gates and toll stations, he said, will be determined by the Infrastructure Concession Regulatory Commission (ICRC).
“We also have to put CCTV Cameras, Solar Light and Security on our roads. Whatever that will make our roads safer is very important to us. All these must be considered part of the business,” he explained.
The three committees set up by the minister for the actualisation of the federal government’s HDMI programme are to handle: Scoping and design, financial due diligence and agreement review.
Umahi warned the concessionaires of the consequence of not meeting up with the rules of engagement.
“I must say that in case timelines were set and any company couldn’t meet up with the timelines, we may not continue processing anything with that company.
“In all our biddings in 2024 going forward, every cost element must be disaggregated. The procurement law has set up profit for the contractors. We will verify the cost in respect of concessionaires.
“We have to ensure that the cost you are putting will do the job. We don’t want you to engage and come back and say there is inflation after we engage you on the project.
“We have to ensure that concessionaires have all what it takes to do the job. The ministry of works and the concessionaires must ensure that we are on the same page so that the citizens will not suffer,” he added.
He however, expressed happiness over the progress made by nine concessionaires in finalising their designs and documentation to achieve a financial close by the first quarter of 2024 and charged them to diligently work with the ministry’s committees for the final processes.
Speaking at the event, the Director Highways and Bridges, Awosanya Onatuga, said the directors and the concessionaires were ready to work concertedly to move the project forward.
“The contract has been consummated but there are certain dynamics that will necessitate a review of the scope of work that will dovetail into the cost of each project, and the minister is desirous to fast-track this process, so that the second phase can take off,” he said.
Emmanuel Addeh in Abuja
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