The Federal Government has outlined new conditions for tolling the Benin-Asaba and Lagos-Abeokuta road corridors, stating that toll collection will only commence upon the completion of 100% of one carriageway.
These conditions emerged after a renegotiation process with Africa Plus Partners Nigeria Ltd, prompted by increased inflationary pressures, exchange rate concerns, and reduced vehicular traffic on the highways due to the rise in the pump price of Premium Motor Spirit.
Among the stipulations, the government emphasized adherence to project design, approved construction period, and avoidance of variations. The Minister of Works, David Umahi, introduced these parameters to enhance the quality delivery and management of road infrastructure under the Highway Development and Management Initiative (HDMI) and ensure efficient utilization by road users upon completion.
In a statement signed by the Special Adviser on Media, Uchenna Orji, the minister explained that the discussions aimed to devise a more effective operational model for the HDMI program and foster better contractual relations between the Federal Government and concessionaires.
The statement outlined several new parameters to be adopted in contractual relations, including:
1. Ensuring business plans align with socio-economic dynamics.
2. Tolling terms compliant with federal laws.
3. Limited use of contingency and variation on price with client’s express written permission.
4. Verification of bill of quantities in line with prevailing market prices.
5. Investor responsibility for sensitizing the public on toll programs.
6. Client’s right to terminate investor’s job for project completion delays.
7. Adherence to highway construction standards prescribed by federal laws.
In response, the team leader of Africa Plus Partners Nigeria Ltd acknowledged the need for project review to meet road construction standards, expressing commitment to robust negotiation and technical analysis for a timely financial close and project commencement.
