FEC approves 1,374km roads across 9 corridors, to generate N11.54trn, says ICRC
- At least nine major highways have been approved for construction and maintenance by the federal executive council
- The federal executive council headed by President Muhammadu Buhari made the approval on Wednesday, January 18
- It is expected that these projects upon completion and operation will generate N11.54 trillion in revenue
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FCT, Abuja - The infrastructure and regulatory commission (ICRC) has confirmed that the federal executive council (FEC) has given approval for the construction and maintenance of nine road corridors under the Highway Development and Management Initiative (HDMI).
As contained in a statement made available to Legit.ng, the approval by FEC was issued by FEC on Wednesday, January 18.
It was gathered that the project will utilise the Public Private Partnership Model and it's expected to generate over N11.54 trillion (N11,543,821,736,086) in the 25 years concession period for the projects.
Further details that the project was initiated by the federal ministry of works and housing which had aimed to construct 12 road corridors with 13 routes. However, three corridors and one route are yet to reach the approval stage at the FEC level.
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The statement reads:
"The projects aim to ensure the management and development of the Nigerian Federal Road Network with the ultimate aim of achieving adequate highway services across the entire network through construction, rehabilitation and management of the road pavement in line with the Federal Government economic reform agenda and global best practices.
"The aim of the partnership is to develop and manage the federal road network, thereby supplementing the federal government’s budgetary allocation for infrastructural development."
Key objectives of the project
As contained in the statement, the project is expected to foster investment from the private sector that will in turn trigger revenue generation, infrastructural development and a host of others.
1. Benin-Asaba (Route 1)
This route is 125km road with a concession of 25-year duration and it is mapped out to generate N1,588,774,183,303 (1.58trn) within the period. The concessionaire is Africa Plus Consortium.
2. Abuja- Lokoja (Route 2)
This is one major road that links businesses and other works of life from the south and also from the east. It also has a concession of 25-year duration and it is expected to rack up N1,762,597,600,000 (N1.76trn) in revenue. The concessionaire is Avia Infrastructure Services Limited (AISL).
3. Onitsha-Owerri
A 161.2km road is expected to generate N706,129,383,000 (N706bn) in the 25-year concession with the private sector investor being Enyimba Economic City Consortium.
4. Shagamu – Benin
The 258km road has its AFC/Mota Engil Consortium as the concessionaire and will generate the sum of N2,049,036,914,300 (N2trn).
5. Abuja-Keffi-Akwanga
The 175.9km road was also approved by FEC and has China Harbour Engineering Company Ltd (CHEC) as its concessionaire. The total sum of N540,568,857,116 (N540bn) is expected to be generated.
6. Kano-Shuari
The 100km road has a concession period of 27 Years and Dafac Consortium as the concessionaire while the expected revenue within the period is N813,463,452,806 (N813bn).
7. Enugu – Port Harcourt
The 200km road has a 25-year concession term and will generate N1,154,416,153,000 (N1.15trn) and the concessionaire is Eyimba Economic City Consortium.
8. Lagos-Ota-Abeokuta
The 80km Lagos-Ota-Abeokuta road will generate N1,575,841,857,561 (N1.57trn) in the 25-year concession period. The concessionaire is Africa Plus Consortium.
9. Lagos-Badagry-Seme Border
The 79km route with a 25-year concession to AFC/Mota Engil Consortium and will generate the sum of N1,352,993,335,000 (N1.35trn) in revenue.
However, ongoing negotiations are still on for the Kano-Katsina route, Kano-Maiduguri (Potiskum - Damaturu Axis) and other corridors like Lokoja-Benin, Ilorin-Jebba.
Source: Legit.ng
