The Nigerian government has reviewed policies on road infrastructure development Public-Private Partnership programme under the Highway Development Management Initiative, HDMI.
The aim of the review is to strengthen the concession policy for concessionaires and to enhance funding and private sector participation in the HDMI programme.
The review was done during a two days meeting held at Ministry of Works Headquarters in Abuja and by the Minister of Works, Mr. David Umahi, Minister of State for Works, Mr. Bello Goronyo, Concessionaires and stakeholders.
At the meeting, the Works Minister identified several issues for discussion including the issue of “Put-Call Option Agreement (PCOA), additional facilities, performance security, shifting of encumbrances on site, the role of the independent engineer, competing road/alternate road, change in project scope, revision of toll fees, force majeure and stakeholder consensus building to ensure active citizenship participation in the effective take-off of project construction, tolling and maintenance”.
Mr. Umahi presented a new addendum to the policy which states that concessionaires shall construct compulsory facilities to include CCTV and solar streetlights, rest areas and any other additional facilities needed to improve travel safety and comfort of road users.
Some of the requirements listed by the Minister for concessionaires to activate the implementation of their projects includes
“their obligation to ensure mutual termination of existing contracts before taking over their respective sites, the need to show evidence of their capacity and readiness, including proof of source of funds for the project, payment of all outstanding debts owed to the existing contractors, evidence of technical and financial competence, and availability of company or partner’s equipment”.
All issues raised were subjected to extensive discussions by the Ministry’s officials and stakeholders.
The Minister of Works promised that the reviewed policy would be presented to the principal stakeholders (Heads of relevant MDAs) within 7 days for further and final deliberation and that each of the concessionaires should communicate their acceptance of the agreement as reviewed or communicate the Federal Ministry of Works on grey areas so that such concerns would be reviewed in a meeting of the principal stakeholders.
Oyenike Oyeniyi