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Last month, the Minister of Works, David Umahi announced the commencement of construction for the Lagos-Calabar Coastal Highway project, approved by the Federal Executive Council.
The minister said the project will be executed in phases, with the initial phase focusing on section one (spanning from Ahmadu Bello Way, Victoria Island to Lekki Phase 1), undertaken by Hitech Construction Company.
Mark Umahi, the Minister of Works, recently confirmed the completion of the first segment, spanning 1.3 kilometers of the Lagos-Calabar coastal road.
Lagos-Calabar Highway project is being handled by Hitech Construction Company
Speaking to the press, the Minister of Works David Umahi said that Hitech Construction Company will lead the Lagos-Calabar Highway project.
Umahi said, “Let me announce that this project is under PPP. The Hitech group are going to look for the money. They have already found the money and that is the good news because we don’t waste our time talking and holding meetings and wasting resources.”
“We are engaging seriously because we have seen the financial capacity and capability of Hitech and this project is going to be delivered in phases. Any section that we complete, we will toll it and then business and transportation will start.”
The minister also said they picked Hitech because they’re good at this kind of work. He said they didn’t have to ask other companies to bid for the project because Hitech was the right fit.
“We followed all procurement acts and the act permits the Federal Ministry of Works to invite a company that has specialised skill in a particular work. For instance, we have some problems on the Third Mainland Bridge with some underwater works and whom did we invite? We invited Julius Berger because they have the skill to the exclusive rights of theirs and we submitted a bid for it and we negotiated and awarded the job. Of course, we ran through the Bureau of Public Procurement and of course also to the Federal Executive Council. So it followed due process.”
Funding of The Lagos-Calabar Highway project
Umahi explained that the Lagos-Calabar Highway project, scheduled for completion in eight years, is using concrete pavement for the four-lane road.
He clarified that the project is funded through a counter-funding arrangement, not a Public Private Partnership (PPP) as previously thought.
“And so in this particular project like Abuja to Makurdi, which is being handled by China Harbour, the government is paying 50 percent counterpart funding. Then you have also from Makurdi to 9th Mile in Enugu State, where we are also paying 50 percent counterpart funding.
“So, there’s a marked difference between PPP and EPC plus F (Engineering, Procurement and Construction plus Finance). And in this particular project, there will be a negotiated counterpart funding of between 15 and 30 percent. We are still negotiating on these terms and will come to a resolution soon,” the minister stated.
The Federal Executive Council approved phase one of the project to Hitech Construction Company Limited, covering 47.47km starting from Lagos. Umahi, during a Channels Television interview, mentioned the estimated total project cost at N15.36 trillion, emphasizing the government’s cost-effectiveness despite an earlier estimate of N4 billion per kilometer.
“What is costing a lot of money is the sand filling and I am very proud of this figure and cost and I did a very good job on this project. So, I will pride myself, to the glory of God, that this project is the most prudent project that I’m starting. Other projects I made, we are reviewing, we are fighting, and we are trying to review, the cost,” he added.
The Lagos-Calabar Highway project cuts across nine states
The Lagos-Calabar coastal highway project spans 700 kilometers and will link Lagos with Cross River, traversing the coastal regions of Ogun, Ondo, Delta, Edo, Bayelsa, Rivers, and Akwa Ibom, before reaching its destination in Cross River.
However, the Federal Government has officially announced its commitment to compensating all property owners situated along the route of the 700km Lagos-Calabar Coastal Highway, spanning these nine states.
Minister of Works, David Umahi, disclosed that President Bola Tinubu had authorized the compensation process for affected property owners, outlining the specific requirements and conditions residents must fulfill to be eligible for compensation.
The Federal Government puts the cost of the compensation at N15tn
According to the Minister of Works, David Umahi, “The Federal Ministry of Works will pay compensation and the President has directed me to pay compensation but we are not going to pay anything to those living in the shanties.
“When you put up a building on a land that is not your own then you are not entitled for compensation. If your property is not approved, you are not entitled for compensation, but the President is a man of good heart and so I think we would still pay compensation to some persons because of the hardship in the country.
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“But I repeat, shanties or unapproved buildings won’t be paid but we would try to save solid properties as much as possible.”
He also noted that the President directed the implementation of a compensation plan in response to the prevailing hardship in the country.
“The number of houses is still unknown but the environmental and social impact assessment officer has concluded his report and has captured all the properties involved. I am going to be looking at it but I am going to remove all the shanties and illegal buildings.
“At the end of this meeting, I know very well that my director and I will decide to increase the number of days of notice, but it is not going to be too long because the rain is coming and we want to pass through this particular section before it starts.
“The first 47km will be completed in 36 months but with what they have done so far, I wont be surprise if they complete it in two years. Until we procure all the sections, we may not be able to say this is the exact time the project will be completed,” he added.
Reactions to the Lagos-Calabar Highway Project
Hassan Saidu, President of the Nigerian Highway Infrastructure and Transport Engineers (NHITE), commended the government for its bold initiative in building the road, despite past failures by previous administrations.
NHITE operates as the road and transport arm of the Nigerian Society of Engineers.
Speaking to journalists, he said, “The coastal project started with the Niger Delta Commission in 2013 when they appointed consultants to look at roads that transverse about nine states. I believe as a nation we have to understand this.
“Remember that several administrations failed to kickstart that project just like what we faced on the second Niger Bridge.
“What we fail to understand is that when it comes to cost of building infrastructure, especially the road infrastructure which is the backbone of economic development and growth, we don’t have to look at just the total cost of the project but how much the project can bring back in terms of Investments.
“So if we start looking at the cost now and say it is expensive, when are we going to start building it? That means the project won’t see light of day and for the attempt to start construction, the institution commends the government by taking the bull by the horn to commence the project.”
He said that factors such as the types of materials, soil composition, and other engineering considerations are crucial aspects to evaluate before deeming the project costly.
“Also, before you talk about cost, you have to look at the type of infrastructure that would be installed on that road. Coastal roads are built in swampy areas and you have to look at some considerations like the materials to be used before we can say it is expensive or not.
“And like any project, it is costlier to build any road in the south than in the North. Because we have more hydrologic structures due to water challenges and the soil condition.
“These are the challenge that would come in terms of cost and the materials to be used will determine the cost. The engineering science and economy will determine the cost. The most important thing is that when the road is done. It is going to improve the economy of that particular area,” he added.
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