In its bid to ensure regular maintenance of road networks across the country, the Federal Ministry of Works and Housing plans to concession no fewer than 12 federal highways to private entities to manage.
This follows the receipt of the Outline Business Case Certificate of Compliance by the Federal Ministry of Works and Housing, to commence the procurement process for the concession of 12 federal highways.
The certificate was issued by the Infrastructure Concession Regulatory Commission (ICRC).
The 12 highways to be concessioned under the Ministry’s “Highway Management Development Initiative”, HMDI, are: Benin-Asaba, Abuja-Lokoja, Kano-Katsina, Onitsha-Owerri, Shagamu-Benin and Abuja-Keffi-Akwanga.
Others are: Kano-Shuari, Potiskum-Damaturu, Lokoja-Benin, Enugu-Port Harcourt, Ilorin-Jebba, Lagos-Ota-Abeokuta and Lagos-Badagry-Seme Border.
In a document released by the ministry and signed by Boade Akinola, its director of press and publicity, the FMWH said the concession process will be classified into two categories — value-added concession and unbundled assets approvals.
For the value-added concession, the road pavement and entire right-of-way will be on concession for development and management by the concessionaire.
While for the unbundled assets approvals initiative, “approvals/permits are issued for individual assets on the right-of-way on a build, operate and or maintain basis”.
This will lead to the use of tollgates for concessionaires to recoup investments.
The ministry said the consessionaire agreement will provide adequate highway services through the development of revenue-generating assets along the highways. It added that over 200,000 jobs will also be created by the initiative.