The minister of finance and coordinating minister of the economy, Mr Wale Edun, says the federal government will soon finalise the N1.5 trillion road concession project.

Mr Edun made the statement during a meeting with some private sector investors in Abuja on Wednesday.

He said that the government was on the verge of finalising the landmark N1.5 trillion road concession project, launched in 2021 under the Highway Development and Management Initiative (HDMI).

The minister said that the initiative aimed to involve private sector partners in the reconstruction and management of nine major highways across the country, spanning approximately 900 kilometers.

He said that the partners had almost completed all arrangements for the highways, which they would finance, rebuild, and maintain under 25-years concession agreements.

Mr Edun said that the concessionaires were expected to recoup their investments through tolling fees.

“We met the concessionaires who have virtually concluded all the agreement arrangements for nine roads, nine major highways, which they are contracting to refinance the rebuilding of and to recover their funds from tolling fees under 25-year or so agreements.

“And we met them to iron out the remaining administrative obstacles for the kicking off construction of these roads,” he said.

Mr Edun said that the substantial private sector investment would bridge budgetary gaps.

He added that it would also allow investors to undertake revenue-generating projects, leveraging their expertise and resources for long-term implementation and maintenance.

“Thereafter, it will be a question of signing the addendums and moving to the site.

“As you know, already the 125-kilometer Benin–Asaba Highway concession agreement has been signed. The addendum has been signed.

“All arrangements have been finalised, in fact, the ministry of works have handed over the road to the concessionaires.

“They have already started the preliminary arrangements for reconstruction of that road in place of a 10 lane highway.

“It is an investment, it’s a project and an initiative that will reduce the travel time between Benin and Asaba right up to the Niger Bridge,” the minister said.

Mr Edun said that the Benin–Asaba Highway project, which has already commenced, is expected to reduce travel time between Benin and Asaba from four hours to one hour, significantly enhancing productivity and efficiency in the region.

He described the HDMI, launched in 2021, as a strategic programme by the federal government aimed at attracting private sector investment to improve Nigeria’s federal road network.

Mr Edun said that the initiative seeks to address the challenges of inadequate funding and maintenance by leveraging Public-Private Partnerships (PPP) to develop and manage road infrastructure.

Under the HDMI, 12 highways were initially selected for concession, covering a total of 1,963 kilometers.

These roads include Benin–Asaba, Abuja–Lokoja, Kano–Katsina, Onitsha–Owerri–Aba, Shagamu–Benin, Abuja–Keffi–Akwanga, Kano–Shuari.

Others are Potiskum–Damaturu, Lokoja–Benin, Enugu–Port Harcourt, Ilorin–Jebba, Lagos–Ota–Abeokuta, and Lagos–Badagry–Seme roads.

The minister said that the initiative was projected to generate over 50,000 direct and 200,000 indirect jobs, contributing significantly to the country’s economic growth and development.

The minister of works, David Umahi, who joined the meeting virtually reassured the private sector partners on the HDMI of the federal government commitment.

He said that everything possible would be done to resolve the contending issues, adding he will soon be back to address all pending issues.

One of the concessionaires, Kola Karim, representing Shoreline, emphasised the need for right and enforceable documents stipulating the takeoff and handover dates, which would attract investors to invest their funds.

Other private sector partners also requested for the addendum to the original agreement to be signed that would enable toll sections of the completed highways while work was in progress on other sections.

They noted that each concessionaire has unique challenges that should be dealt with accordingly.

Also in the meeting were minister of budget and economic planning, Abubakar Bagudu, and the director general Infrastructure Concession and Regulatory Commission (ICRC), Jobson Ewalefoh.

(NAN)