The federal government of Nigeria is presently looking to enter a funding agreement in a Public-Private Partnership (PPP) deal with Bi-Courtney Highways Limited to ensure the timely construction and rehabilitation of the Lagos-Ibadan expressway project.
The issue was the core of discussion at a meeting held earlier this week in the National Assembly, where it was also agreed that Motorways Assets Limited would be part of the PPP arrangement for the expressway.
The reconstruction of the highway had already been handed over to Bi-Courtney in 2009 under a Build, Operate and Transfer deal, but was 3 years later revoked because of alleged violation of the terms of agreement by the company.
Also read:Roads Maintenance Agency in Nigeria rehabilitates the Kaduna-Abuja highway
The meeting, which was held behind closed doors, and had in attendance the Senate President, Dr. Bukola Saraki, Minister of Finance, Mrs. Kemi Adeosun, Chairman, Senate Committee on Appropriation, Senator Danjuma Goje, and his Finance counterpart, Senator John Enoh.
The Chairmen of Bi-Courtney Highways Limited and Motorways Asset Limited, Dr. Wale Babalakin and Mr. Abdulrasaq Oyinloye respectively were also present.
The Minister of Finance, Mrs. Kemi Adeosun said that the expressway’s completion will serve as a model for infrastructure development in the country. The new agreement will have both companies merge their current dispensations to a new company. This will then act as a special purpose vehicle for the project.
The companies will be provided with financial instruments through which they will be able to raise funds required for the project.
Apparently, the underlining objective of the new agreement is to ensure that quality work is done and completed in the shortest time possible on the road which is said to be central to the nation’s economy. Very soon, all parties would sign a formal agreement on this deal.
