The Oyo State Government has approved the award of the contract for the construction of the 110km Ibadan circular road to a new concessionaire named, Messrs SEL-Vydra Consortium, at the cost of N138.2 billion.
The project, which is to be executed on a Build, Operate and Transfer concession arrangement, is also classified as a User-Pays toll road.
The new contract, according to the government, followed the expiration of the earlier contract for the construction of the 32km stretch granted to Messrs ENL Consortium by the immediate past government in the state.
The Makinde administration has, however, approved a joint evaluation of the work done by ENL on the segment awarded to it, in 2017, by the immediate past government at the cost of N67billion.
The portion awarded to ENL at the cost of N67bn represents only a third of the entire 110km stretch of the all-important road now awarded at the cost of N138.2bn.
A statement by the Chief Press Secretary to Governor Seyi Makinde, Mr Taiwo Adisa, confirmed that the award of the contract was one of the last assignments undertaken by the State Executive Council, which was dissolved shortly after its meeting of Tuesday, June 29, 2021.
The statement further indicates that the Ibadan Circular Road encircles the Ibadan urban area, providing the critical link between different parts of the city and the new Central Business District initiated by Governor Makinde.
While the state government would contribute N25 billion and own 20 percent equity in the project, Messrs SEL-Vydra Consortium would contribute the sum of N113.2 billion and own 80 percent.
Other contracts awarded
Other contracts awarded by the Council include the 34.85 km Oyo-Iseyin Road, a Federal road being constructed by the state in view of its strategic importance to the economic expansion plans of the Makinde administration.
The statement says the Oyo-Iseyin road, awarded to Messrs Kopek Construction Limited, at the cost of N8.4 billion, would be executed through the Alternative Project Funding Approach (APFA) and completed within 12 months.
The state government also approved the rehabilitation/sectional overlay of BCJ-Railway crossing/Up Jesus junction/Baptist Grammar School junction/NIHORT junction, with a spur to ‘Ye Are The Light Church’ Road, Ibadan, awarded to Messrs Still Earth Nigeria Limited at the cost of N888.9 million and to be completed within seven months.
Approval was also given for the rehabilitation and asphaltic overlay of roads within Kolapo Ishola Estate, a Government Reservation Area (GRA), in Ibadan, at the cost of N1.053 billion, a project to be executed by Messrs Peculiar Ultimate Concerns, with a contract duration of five months.
Similarly, the Council approved the construction of the Isaba/Ogundoyin road, Eruwa, which was awarded at the sum of N684.1 million and expected to be completed within seven months, while the repayment under APFA would be effected in 12 months.
The statement also confirmed the approval ofthe construction of a 500,000 litre aviation fuel facility at the Ibadan Airport at the cost of N1.2 billion.
The facility would enable airlines use Ibadan as their operational base, while also ensuring that the airport serves as an immediate alternative to the Lagos Airport, in case of bad weather or other forms of challenges.
The Council equally approved two bills, including the Oyo State Institute of Information Technology, Communication and Entrepreneurship Studies Law 2021 and the Hotel Occupancy and Restaurant Consumption Tax Law 2021, for onward transmission to the State House of Assembly.
Emmanuel Ukoh
