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Minister Clarifies Cost of Lagos-Calabar Coastal Highway Project

The Minister of Works, David Umahi, has provided details on the cost and funding structure of the ongoing Lagos-Calabar Coastal Highway project. According to Umahi, the project is being constructed for N4 billion per kilometre, which is significantly lower than the N8 billion per kilometre previously reported.

During an interview on Television Continental’s News Hour program on Wednesday in Lagos, the minister stated that the project’s total cost is expected to be N2.8 trillion. He dismissed claims that the project did not follow due procurement processes, asserting that the contract was awarded on a counter-funding basis rather than a Public-Private Partnership (PPP) arrangement, as widely reported.

The clarification from the minister comes after the former Vice President, Atiku Abubakar, raised concerns about the lack of competitive bidding and questioned the decision to award the contract to Gilbert Chagoury’s Hitech company without a transparent process. Abubakar had also questioned the release of N1.06 trillion for the pilot phase, which constitutes six per cent of the project and covers the stretch from Eko Atlantic to the Lekki Deep Sea Port.

Umahi acknowledged the soaring costs of materials in the construction industry due to commodity price inflation and supply chain disruptions but reiterated the ministry’s commitment to prudence, promising to reveal the true cost of the project.

The minister confirmed that the project, which will feature a four-lane carriageway with concrete pavement, is scheduled to be completed within eight years. He explained that while N1.06 trillion was appropriated, the full amount has not yet been disbursed.

Umahi provided detailed calculations to support the N4 billion per kilometre cost, stating that the design differs from the original plan by the Niger Delta Development Commission (NDDC). The new design includes 10 lanes, shoulders, and a provision for a train track, resulting in a wider cross-section compared to the previous plan.

Regarding the procurement process, the minister clarified that the project was not envisaged as a PPP arrangement but rather as an Engineering, Procurement, Construction, and Finance (EPC+F) program, similar to the Abuja-Makurdi road project. Under this arrangement, the federal government will negotiate a counterpart funding contribution between 15 and 30 per cent.

The minister’s statements aim to address concerns raised by stakeholders and provide transparency on the project’s cost and funding structure, highlighting the government’s commitment to prudent infrastructure development.

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